รายงานประจำ�ปี 2554 รายงานของฝ่ายจัดการ 01 ANNUAL REPORT 2011 KASIKORNBANKGROUP Customer Centricity

• Multi-Corporate Business • Large Corporate Business • Medium Business • Small and Micro Business • High Net Worth Individual • Affluent • Middle Income • Mass Mission KASIKORNBANKGROUP aims to be a strong Thai financial group that provides a variety of financial services of world-class quality responsive to serve customers’ needs by harmoniously combining technology and human resources so as to achieve optimal benefits to customers, shareholders, employees and the country.

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

Core Values • Customer Centricity • Group-Wide Teamwork • Professionalism • Innovation Annual Report 2011 002 Management Report

FINANCIAL HIGHLIGHTS (CONSOLIDATED FINANCIAL STATEMENTS) As of or for the years ended December 31, 2011 2010 2009 COMMON SHARE INFORMATION Per share (Baht) • basic earnings 10.12 8.38 6.16 • book value 64.68 56.38 50.14 • dividends 2.50 2.50 2.50 Share price (Baht)1) • high 144.00 130.00 91.00 • low 99.75 77.25 40.25 • closing 122.00 125.50 85.00 Common shares outstanding • average basic (million share) 2,393.26 2,393.26 2,393.26 • end of year (million share) 2,393.26 2,393.26 2,393.26 Market capitalization (Million Baht) 291,978 300,354 203,427

VALUE MEASURES Price to earnings ratio (PER) 12.06 14.98 13.80 Price to book value ratio (PBV) 1.89 2.23 1.70 Dividend yield (based on closing share price) 2.05% 1.99% 2.94% Dividend payout ratio 27.00% 32.14% 42.49% Number of employees2) 16,580 15,677 15,464 Number of branches2) 816 805 782

OPERATING RESULTS (Million Baht) Interest income - net 56,491 46,744 39,857 Non-interest income 34,017 28,400 21,683 Fees and service income - net 20,637 18,227 15,937 Other income 45,087 35,394 7,686 Underwriting expenses 31,707 25,221 1,940 Total operating income - net 90,508 75,144 61,540 Total other operating expenses 43,019 38,003 31,338 Impairment loss on loans and debt securities 7,345 6,701 9,376 Operating profit before provision expense and income tax expense3) 47,489 37,141 30,202 Net profit4) 24,226 20,047 14,733

FINANCIAL POSITION STATEMENT INFORMATION (Million Baht) Loans5) 1,210,834 1,076,981 941,145 Allowance for doubtful accounts and revaluation allowance for debt restructuring 40,343 36,832 34,045 Non-performing loans net (NPL net)6) 14,698 16,022 18,473 Non-performing loans gross (NPL gross) 31,736 33,175 37,152 Total assets 1,722,940 1,546,664 1,362,838 Deposits 1,242,229 1,100,036 975,492 Total liabilities 1,555,974 1,401,177 1,234,692 Equity4) 154,799 134,943 119,997 Risk weighted assets 1,269,282 1,131,218 1,004,092

Note: • Financial statements as at 31 December 2010 and 2009 have been reclassified to be presented in order to comply with Thai Financial Reporting Standards and the Bank of Thailand (BOT) notification number Sor Nor Sor 11/2553, directive dated 3 December 2010, regarding “The preparation and announcement of the financial statements of commercial banks and holding companies which are parent company of group of companies offering financial services”. • The 31 December 2009 consolidated financial position statement included all items of assets and liabilities of MTGH Group. The consolidated statement of comprehensive income included 1 month operating result of MTGH Group for the period ended 31 December 2009. 1) Local board / High-low share prices during the year 4) Excluding non-controlling interests 2) Bank only 5) Loans = Loans to customers less Deferred revenue 3) Provision expense = Impairment loss on loans and debt securities 6) Non-performing loans net refer to the non-performing loan value, net of total allowances for doubtful accounts Annual Report 2011 Management Report 003

FINANCIAL HIGHLIGHTS (CONSOLIDATED FINANCIAL STATEMENTS)

Net Profit NPL Gross to Total Loans Million Baht Trillion Baht 30,000 4.00% 1.40 24,226 3.76% 1.21 25,000 3.50% 1.08 1.20 20,047 3.00% 20,000 0.94 2.45% 1.00 14,733 2.50% 2.91% 0.80 15,000 2.00% 0.60 10,000 1.50% 1.00% 0.40 5,000 0.50% 0.20 0 0.00% 0.00 2009 2010 2011 20092009 20102010 20 201111 Net Profit Loans NPL Gross to Total Loans Total Assets Total Liabilities Trillion Baht Trillion Baht 1.80 1.72 2.00 1.56 1.55 1.80 1.40 1.60 1.36 1.60 1.23 1.40 1.40 1.20 1.20 1.00 1.00 0.80 1.24 0.80 1.08 1.21 0.60 0.98 1.10 0.60 0.94 0.40 0.40 0.20 0.20 0.00 0.00 2009 2010 2011 2009 2010 2011 Loans Total Assets Deposits Total Liabilities

As of or for the years ended December 31, 2011 2010 2009 PERFORMANCE INDICATORS Net interest margin (NIM) 3.75% 3.48% 3.23% Non-interest income to average assets 2.08% 1.95% 1.62% Non-interest income ratio 37.58% 37.79% 35.23% Efficiency ratio 47.53% 50.57% 50.92% Return on average assets (ROAA) 1.48% 1.38% 1.10% Return on average equity (ROAE) 16.72% 15.73% 12.79%

ASSET QUALITY RATIOS Loans to deposits ratio 97.47% 97.90% 96.48% Loans to deposits and B/E ratio 94.72% 93.51% 92.80% Tier 1 capital ratio 9.63% 9.37% 10.25% Total capital ratio 13.81% 13.96% 15.19% NPL net to total loans7) 1.15% 1.43% 1.91% NPL gross to total loans8) 2.45% 2.91% 3.76% Provision expense to average loans (Credit cost)9) 0.64% 0.66% 1.02% Total allowance to loans10) 3.33% 3.42% 3.62% Total allowance to NPL gross (Coverage ratio)10) 127.12% 111.02% 91.64%

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

5 BOARD OF DIRECTORS’ REPORT MANAGEMENT REPORT Management Report 7 Management Discussion and Analysis 9 1. Overview 2. Operating Performance and Financial Position Analysis 3. Operations of Core Businesses 4. Operations of Support Groups 5. KASIKORNBANK’s Investments in Subsidiaries and Associated Companies Risk Management and Risk Factors 55 1. Overall Risk Management 2. Risk Management 3. Capital Management

FINANCIAL REPORTS Report of the Board of Directors’ Responsibilities for Financial Reports 71 Report of the Audit Committee 72 Audit Report of Certified Public Accountant 74 Financial Statements 76 Notes to the Financial Statements 84

CORPORATE GOVERNANCE Report of the Corporate Governance Committee 219 Report of the Human Resources and Remuneration Committee 220 Corporate Governance 221 1. Rights of Shareholders 2. Equitable Treatment of Shareholders 3. Roles of Stakeholders 4. Disclosure and Transparency 5. Responsibilities of the Board of Directors Dividend Policy 254 Factors Affecting Investment Decisions 255

CORPORATE SOCIAL RESPONSIBILITY (CSR) ACTIVITIES Business Activities 257 Environment and Safety 266 Employees 269 Social Activities 274 Plans for CSR Activities in the Future 281

STRUCTURE Organization Chart 284 Board of Directors 286 Board of Directors and Executives 288 Directorship of Directors and Executives in Subsidiaries, Associated, and Related Companies 300 Changes in KASIKORNBANK Shares Held by Directors and Executives in 2011 302 Management Team 303 Investment of KASIKORNBANK in Other Companies 308

OTHER INFORMATION Reference Information 311 Major Shareholders 312 Awards and Commendations 313

KASIKORNBANKGROUP KASIKORNBANK 321 1. Domestic Branch 2. Foreign Exchange Booth 3. K-Safe Deposit Box Center 4. THE WISDOM Exclusive Center 5. THE WISDOM Corner 6. THE WISDOM K-Safe Deposit Box Center 7. K-WePlan Branch 8. Corporate Business Center 9. Corporate & SME Service Center 10. SME Business Center 11. Overseas Office K Companies 347

SUMMARY OF SPECIFIED ITEMS PER FORM 56-2 349 Annual Report 2011 Management Report 005

BOARD OF DIRECTORS’ REPORT

KASIKORNBANKGROUP experienced another of campaign execution through branch platform, thus leading successful year in 2011, as one of Thailand’s leading to creation of cross-selling, up-selling, better campaign financial conglomerates. Net profits were up 20.85 percent, response rate, as well as higher product holding to Baht 24,226 million, and total financial solutions continued and sales amount/transaction volume per customer. to be developed and extended to cover all customer For Small SME & Micro Segment, the benefit has been segments, both at home and abroad. In addition to realized in lead/referral across channels, sales planning the 816 KASIKORNBANK branches and 7,366 ATMs & sales management activities. in Thailand, there are now four branches and four representative offices abroad. As part of our aim to Beyond implementing our Customer-Centric provide valuable financial services, business alliances strategy and ensuring the highest quality under our have been forged with financial institutions in China, unique K-Excellence concept, KASIKORNBANKGROUP Japan, South Korea, and Vietnam. has adhered to our Statement of Corporate Governance and Corporate Social Responsibility (CSR) Principles. Within the financial arena, KASIKORNBANKGROUP Activities and projects have been carried out for held the lead position in many areas. As the leading the benefit of youth, education, and the environment. provider of business services to SMEs, KGroup maintained During the catastrophic flooding last October, in addition the largest share of that market. We led in digital and mobile to well thought out assistance measures, KGroup set up phone banking services with 2.8 million users. Non-interest two flood relief centers. Administered by the Chaipattana income increased by 19.78 percent; home loans increased Foundation, one center was located at the First Army Air by 15.74 percent. Of note was our K-Value Chain Solutions, Defense Operation, Wang Noi, Phra Nakhon Si Ayutthaya, the first of its kind in Thailand, providing full-cycle financial and the other at Wat Yansangwararam, Chon Buri. services along the entire value chain, upstream to downstream. KGroup believes that these efforts alleviated material With the products and services offered by KGroup, our hardship while providing needed hope and encouragement customers in the corporate, SME, and retail segments to flood victims. are able to achieve lower costs and more efficient and effective operations. On behalf of the Board of Directors and the entire KGroup staff, I would like to take this opportunity to express The K-Transformation Program continued to move our sincere appreciation to each and every one of you. forward in 2011, with the development of the Multi-channel Sales and Services (MSS) Project. New branch infrastructure platform rollout was fully completed. Having been deployed to all Bangkok branches already during 2011, the new sales & service solution will be gradually applicable to more than 800 branches nationwide by Q1/2012. To date, the new sales & service system has created faster customer responsiveness and consistent customer experience across channels. Moreover, the newly finished MSS integrated with Know (Mr. Banyong Lamsam) Our Customer (KOC) capabilities has increased effectiveness Chairman MANAGEMENT REPORT

007 Management Report 009 Management Discussion and Analysis 055 Risk Management and Risk Factors Annual Report 2011 Management Report 07

MANAGEMENT REPORT

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

Amid global economic woes and domestic economic increase - over the end of 2010. This was primarily due to risks in 2011, KASIKORNBANKGROUP (KGroup) strove to over-year loan growth of Baht 133,853 million - equivalent to provide support to all customer segments, based on our 12.43 percent - to Baht 1,210,834 million, which drew support organization-wide teamwork and the “Customer-Centricity” from impressive growth in Corporate, SME and Retail Business strategy, with the aim of offering the total solutions to our loans. Our non-performing loans continued to diminish over-year, customers. In addition, having recognized business opportunities amid increased loan extension and improved asset quality. abroad - particularly in China - KGroup has been successful The Bank’s consolidated deposits equaled Baht 1,242,229 million, in forming business alliances with several large banks there, growing by Baht 142,193 million, or 12.93 percent, over the end wherein KASIKORNBANK also became the first Thai bank to of 2010, as we continued to offer attractive deposit products at open a Chinese-Thai Business Center (CTBC) in our country to various times. As for capital status, the Bank’s capital adequacy provide comprehensive information and advisory services to ratio was 13.81 percent, with Tier-1 and Tier-2 capital ratios both Thai and Chinese investors. equaling 9.63 percent and 4.18 percent, respectively, which mirrors Aside from our business expansion into China by opening our capital strength. of a new branch, KGroup has sought to establish a business K Companies engaged in financial business all showed network with partner banks in various countries that will satisfactory quantitative and qualitative performance in 2011, allow us to meet not only the needs of foreign investors wishing attributable to close-knit internal cooperation within KGroup. to invest in Thailand, but also Thai companies seeking to KSecurities had an excellent performance, wherein their income invest in other countries in Asia, including Japan, South Korea and profit continued to grow over 2010. KAsset maintained superior and Vietnam. growth in their assets under management (AUM), comparing to In light of the most extensive flooding in recent Thai history, the market average. Also, the company’s AUM represented KGroup has placed emphasis on customer contacts and visits the largest market share in the business. KLeasing had impressive to assess the damage, so that we could render them the most loan growth in 2011, while the company continued to focus on timely and appropriate assistance; we have also devised their asset quality improvement. KF&E reported significant loan a number of complete assistance measures to help both growth over-year. Meanwhile, MTL achieved outstanding earned business and retail customers. To achieve marked success premium growth, and was able to maintain the national first-place in strategies that differentiate us from rivals, we have placed rank in bancassurance’s new business premiums. an emphasis on our development of support functions to work We have adhered to recognized best practices in risk more harmoniously via improvements in human resources management strategies. Emphasis has been placed on and IT management, as well as technological innovations via engagement within our consolidated risk management framework, the K-Transformation program. as well as complete and accurate disclosures of risk management As a result of these efforts, KBank’s consolidated net and capital adequacy information on a regular basis. Striving income for 2011 totaled Baht 24,226 million, increasing by Baht to be the best in all dimensions of our business development, 4,179 million, or 20.85 percent, over 2010, mainly attributable we nevertheless strictly adhere to good corporate governance to increases in net interest income and non-interest income. principles. To this end, we achieved our higher business goals Regarding our financial position as of December 31, 2011, in 2011, and were applauded widely at home and abroad, the Bank’s consolidated assets totaled Baht 1,722,940 million, thus having been the recipient of many awards of recognition increasing by Baht 176,276 million - an 11.40 percent extended to us in 2011. Annual Report 2011 08 Management Report Annual Report 2011 Management Report 009

MANAGEMENT DISCUSSION AND ANALYSIS

1. Overview investor concern towards heightened economic risks and 1.1 Overview of Economy, Banking Industry and Regulatory affected global financial market movements. Changes Regarding the economic outlook for 2012, it is Thailand’s Economy in 2011 and Outlook for 2012 estimated that the Thai economy will grow by 4.5 to 6.0 The Thai economy in 2011 expanded at only 0.1 percent percent over 2011, boosted by private and government over-year, dramatically decreasing from the 7.8-percent spending for post-flood rehabilitation activities, and building growth of 2010, due to a number of negative factors at of flood-mitigation facilities, as well as investment in home and abroad, including the devastating earthquake and megaprojects. Although the Thai economy is expected to tsunami in Japan that caused supply chain disruption of maintain its growth momentum, international trade, industrial manufacturing, an economic slowdown in major particularly for exports, may be affected by the deceleration economies as a result of the public debt problems of of major economies globally. Meanwhile, the government’s the U.S. and Europe, as well as massive flooding in Thailand policy implementation to increase income and stimulate affecting a wide range of economic activities and sectors. the economy, including increases in the minimum wage As risks to the Thai economy became more evident, the Bank and civil servant income, and energy-related policies, of Thailand’s Monetary Policy Committee (MPC) resolved to as well as potentially rising commodity prices, may pressure cut their policy rate during the final meeting of 2011, following domestic inflation and bring additional challenges to the interest rate hikes during the first three quarters, as part Bank of Thailand’s monetary policy maneuvers throughout of their efforts to maintain economic stability. Meanwhile, 2012, particularly if the sovereign debt crisis in Europe grows the prolonged and widespread European debt crisis has raised worse than initially expected.

Thailand Economic Growth Forecast

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

8 7.8

6 4.5 - 6.0 3.8 3.5 - 4.5 4 3.3

2

0.1 0 2010 2011 2012* GDP Headline CPI Source: National Economic and Social Development Board, Ministry of Commerce and KASIKORN RESEARCH CENTER CO., LTD. Note: * Forecasted Figure (As of February 21, 2012) Annual Report 2011 010 Management Report

Banking Industry and Competition Regulatory Changes1 In 2011, operations of Thai commercial banks were Some important regulatory changes in 2011 that may affected by multiple downsides, with the worst being affect KASIKORNBANK business operations can be the catastrophic flooding in the final quarter of 2011 that made summarized, as below: banking services inaccessible within some areas, resulting in a • Criteria for Establishment and Supervision of Overseas temporary decline in banking transaction volume. Looking Branches of Thai Commercial Banks over the entire year, however, core banking business maintained Pursuant to the Bank of Thailand (BOT) notification a fair level of operating performance. This was largely driven No. SorNorSor. 8/2554, on the criteria of establishment by sound growth during the first three quarters. Loans within and supervision of overseas branches of Thai commercial the Thai banking sector achieved double-digit growth in banks (which was published in the Government Gazette on continuation from 2010, amid higher loan demand along with October 17, 2011, and came into force on the following date), expanding international trade and other economic activity, BOT approval is required for overseas branch opening of despite upward interest rate trend during the first three quarters. Thai commercial banks (in the form of overseas offices Supply-side push also contributed to impressive loan growth, holding branch status, for operating the commercial bank particularly after most commercial banks looked forward to business within the permitted scope of each country). meeting their loan targets that year. Continued growth in fee In addition, a comparative analysis must be conducted and service income helped banks to sustain higher net profits in relation to expected benefits, costs and risks for such and net interest margins (NIM), despite the widespread branch opening. Within three years after the BOT approval flooding in the fourth quarter of 2011. Asset quality remained in principle, completion of the branch opening request must healthy with a continued decline in the ratio of non-performing be achieved. Bank officers must be assigned for an audit of loans (NPLs) to total loans. branch business operations and assets at least biennially, As for 2012, Thai commercial banks are expected to see while reporting and document submittal must comply more challenges in maintaining their earnings and profitability, with the established regulations and conditions. In cases despite the potential for double-digit loan growth achieved where commercial banks wish to terminate or discontinue on the back of continued domestic spending and the tamed their branches overseas, they have to submit the request interest rate direction. In addition to loans, competition form for the BOT’s permission. Upon approval of business in deposit and savings products will remain intense, in light of termination, the business operation license must be returned the stronger need of Thai commercial banks to accumulate to the Ministry of Finance or the BOT (as the case may be). liquidity to brace for intensified competition in the deposit Guidelines for overseas branch establishment market, especially with other savings and investment have been better clarified by this regulation, thus encouraging alternatives and a reduction in the deposit guarantee to not commercial banks with high potential to attain greater more than Baht 1 million/customer/financial institution by coverage of business operations and customers. Moving the Deposit Protection Agency, effective August 11, 2012. forward, banks’ business operations will be enhanced with In addition, changes in relevant laws and regulations - including improved efficiency and competitiveness, specifically the implementation of a financial sector liberalization policy, accounting standards and effects from the Emergency Decree regarding the management of the Financial Institutions 1 Other details relating to regulatory changes during 2011 can be viewed Development Fund (FIDF) debt service - may inevitably in the report of Management Discussion and Analysis (MD&A) for the quarters affect Thai banking business operations, going forward. ending March 31, 2011, June 30, 2011 and September 30, 2011. Annual Report 2011 Management Report 011

important to the upcoming financial sector liberalization. KGroup has already undertaken a study, wherein its initial As KBank has been studying and analyzing all relevant issues results indicate our potential and readiness in incorporating circumspectly for our overseas business expansion, this business. Although this study also suggests a variety our operations have not been significantly affected by of service models suitable to different groups of customers, this regulation. practical implementation remains pending clarity of relevant • Permission for Thai Commercial Banks to Operate regulations, including tax-related issues. Trustee Business • The Financial Sector Master Plan II (FSMP II) The BOT notification No. SorNorSor. 9/2554, concerning The BOT’s Financial Sector Master Plan II (to be the permission for Thai commercial banks to operate trustee implemented during 2010 - 2014) consists of three business (which was published in the Government Gazette key policies: reducing system-wide operating costs, on November 16, 2011, and came into force on the following promoting competition and access to financial services, date) stipulates that permission is required from the Office and strengthening financial infrastructure, which includes of the Securities and Exchange Commission (SEC) for market liberalization, increased access for foreign financial trustee business to be operated by commercial banks, institutions via grants of licenses for some business areas, in compliance with the Trust for Transactions in Capital and permission for an increased number of branches and Market Act, B.E. 2550, and other relevant BOT regulations. ATMs. By 2014, a business license for establishment of Commercial banks can apply for any trustee business types, new full-service commercial banks is planned. Furthermore, if their qualifications meet the established standard and the authorities plan to encourage large-sized commercial their practices comply with the specified conditions. banks of ASEAN+3 (including China, Japan and South Korea) (Nevertheless, retail banks are not allowed to be a trustee to operate their business in Thailand more freely, as well as functioning as investment manager.) In addition, those expediting the schedule of financial sector liberalization. commercial banks have to formulate policies, strategies, In order to brace for such guidelines to liberalize the financial operational procedures, as well as arranging written plans institution sector, KGroup has conducted extensive analyses to support their trustee business operation, with the approval on this issue. So doing - plus our decade-long efforts to of their Board of Directors. Moreover, assets of trust pursue strategies that have strengthened our business funds - in which commercial banks are entitled as their fundamentals - has led us to believe that we will be able to trustee - shall not be consolidated with bank assets, in order maintain our competitiveness over both existing and new to comply with the BOT supervision. Meanwhile, the BOT is players that may enter the market in the future. These notable authorized to suspend or revoke the trustee business license efforts included our thorough understanding towards the needs in cases of breach or non-compliance with the regulations of our customers under our “Customer-Centricity” strategy or conditions, or any action that may affect the safety or that has been continually improved, along with developed well-being of the general public. products, services, and sales and services channels, With this notification, commercial banks will have more suitable for each customer segment, their life stages opportunities to offer a wider range of financial services as and lifestyles, as well as the nature of business operations per the objectives of the Financial Sector Master Plan II in Thailand and the changing economic environment. (FSMP II), aiming to encourage leading banks to widen • ASEAN Economic Community (AEC) their financial business to meet all needs of customers, A single market and production base among member from mutual funds to venture capital funds and private funds. countries is aimed to be achieved by 2015 as per the ASEAN As for the trustee business which is new in Thailand, Economic Community (AEC) establishment. Major progress Annual Report 2011 012 Management Report

of liberalization has been evident in terms of international of Basel III implementation at home and internationally, trade, whereas the service liberalization will be gradually in order to ensure that compliance will not have any impact implemented later on. Regarding the financial service sector, on the capital level of the KASIKORNBANK Financial the securities business - which Thailand has been committed Conglomerate. to liberalize - has reported significant movements. • Implementation of International Accounting Standards Under the securities business liberalization, 100 percent (IASs and IFRSs) foreign-equity ownership is permitted in existing firms, KASIKORNBANKGROUP has complied with the while foreign shareholding of over 49 percent in commercial International Accounting Standards (IASs) and International banks and insurance firms remains unbounded. Financial Reporting Standards (IFRSs) under the time frame Due to the fact that the full-service commercial banks specified by the Federation of Accounting Professions. may be affected by the development of financial sector Also, the Bank has early-adopted some IASs and IFRSs, liberalization, particularly for securities business, along with before the regulations take effect officially, while we continue a plan to expedite the liberalization schedule, commercial to prepare for the full implementation of these new banks should brace for any changing circumstances that may regulations, initially scheduled to be effective in Thailand affect their business operation, as well as their customers. during 2013 - 2015. So doing has been undergone by Realizing the significance of the AEC establishment assessing the possible impacts on management decisions, that will bring greater opportunities, albeit with heightened policy improvements, as well as revision of relevant competition, KGroup has been closely monitoring the operational procedures and systems, on grounds of benefit development of related negotiations, as well as studying maximization for KGroup. the opportunities and challenges that may affect the Bank • Reduced Corporate Income Tax and our customers’ business operations. In 2011, KGroup According to the Royal Decree issued under expanded our cooperation with our business allies who are the Revenue Code regarding Reduction and Exemption leading commercial banks in ASEAN countries. Focus has from the Revenue Taxes (No. 530) which was published been placed upon equipping our customers with relevant in the Government Gazette on December 21, 2011, knowledge, along with complete products and services to and came into force on the following date, the corporate every customer segment, in order to ensure that their income tax was reduced from 30 percent to 23 percent business expansion within ASEAN will be supported by for fiscal year 2012, and to 20 percent for fiscal years 2013 our finest financial services. This effort also helps maintain and 2014, in order to promote competitiveness and stimulate their competitiveness, amid more intensified competition the overall economy. in the future. The reduced corporate income tax will benefit KGroup • Basel III in 2012 onwards. Due to our adoption of the deferred income Drafted by the Basel Committee on Banking tax policy, this revised regulation thus had impact on only Supervision (BCBS), the new regulations of Basel III will our Statement of Financial Position for the fourth quarter take effect on January 1, 2013, and may result in changes of 2011 (related details can be viewed in No. 43 concerning in commercial banks’ capital and liquidity risk management. Income Tax in the Notes to Financial Statements). As this As the BOT will likely comply with these guidelines, consequence is regarded as an accounting adjustment the KASIKORNBANK Financial Conglomerate has been and bears no realized expenses for the Revenue Department, studying in preparation for the changes, assessing impacts such adjustment has not affected our business operation, of compliance, and continuously monitoring the progress profitability and capital. Annual Report 2011 Management Report 013

1.2 Business Directions of KASIKORNBANKGROUP Thai financial institution with SME lending expertise, has KASIKORNBANKGROUP in 2011 and Outlook for 2012 embarked on business expansion to increase our market Against the backdrop of global economic woes in 2011, share in the Chinese banking sector in sync with the economic especially the European public debt crisis and slow U.S. development plans of China and Thailand. In 2011, KGroup economic recovery, plus the widespread flooding declared success in forming a business alliance with in Thailand that dealt a severe setback to the Thai several large banks in China, and KBank was the first economy - particularly through the industrial sector - late Thai bank to open the Chinese-Thai Business Center (CTBC) last year, KASIKORNBANKGROUP has strived to provide in our country to provide information and comprehensive support to all customer segments, based on our advisory services for doing business in both countries. organization-wide teamwork and the “Customer-Centricity” Additionally, the Bank has continued to offer financial services strategy, with an aim of offering total solutions - comprising to support Thai-Chinese businesses, namely “China Direct”, products and services from all six companies in KGroup - which guarantees USD-denominated funds transfer to China to our clients. To this end, we introduced K-Value Chain within the same day, and other RMB-related services. Solutions to offer fully-integrated value-chain services to our Aside from our business expansion into China by large business customers, with credit products and financial opening of a new branch, KGroup has sought to establish services that meet the specific needs of each business, a business network with partner banks in various countries from upstream to downstream. Industry Solutions have been that will allow us to meet not only the needs of foreign launched to respond to the demands of our SME customers investors wishing to invest in Thailand, but also Thai in eight major industries, in addition to enhancement of companies seeking to invest in other countries in Asia, products and services to promote international trade including Japan, South Korea and Vietnam. through the K-Trade Premier and SME Super Trade Credit In light of the most extensive flooding in recent programs. With the coordinated effort between the Bank Thai history, KGroup has placed our emphasis on customer and KLeasing, K-SME Leasing Plus was launched to meet contacts and visits for accurate assessment of damages, the needs of our business clients. We also offered financial so that we could render them the most timely and appropriate and non-financial support - including knowledge and business assistance. We have offered a complete range of post-flood network - through the K SME Care program that has been assistance measures, in the periods of damage assessment, continually pursued over the past five years. business restoration and recovery to full production capacity For retail business customers, KGroup, in cooperation throughout the business cycle, including suppliers, producers with six leading property developers, launched a pilot project and consumers. For retail business clients, our aid measures of an escrow agent service, acting as a neutral third party involved reduction of monthly repayments, provision of grace with fiduciary responsibilities on behalf of home buyers and period, and reduced minimum repayment of all types of sellers. Also, based on our understanding of the restrictions consumer loans. facing self-employed persons and freelancers in accessing KGroup has placed an emphasis on harmonious work credit facilities, we initiated the “Savings for Future Benefit” relationships among support functions. With regard to program that allows this group of customers to use their our human resources, we have recruited employees savings records as part of their loan application. in a manner consistent with our organizational and business Having recognized business opportunities overseas - strategies, developed leadership potential, and enhanced particularly in China, where the ample loan demand of local our organizational culture based on our behavioral guidelines. SME proprietors has yet to be met - KBank, as a leading On the IT front, the focus has been on system development, Annual Report 2011 014 Management Report

security and system stability management, as well as All of these aforementioned efforts not only business continuity management (BCM), all of which aims supported KGroup in achieving higher business goals at enhancing the success and effectiveness of business in 20112, but also rewarded us with many marks of strategy implementation, and responding to the needs recognition from both domestic and foreign agencies, of each business unit. including:

Awards for KBank Business Divisions and Other Important Awards • Best SME Bank in Thailand award in The Asset Triple A • Best Debt House 2011 award for the fourth consecutive Transaction Banking Awards 2010 & 2011 from The Asset year and Best Domestic Bond House 2011 award magazine in The Asset Triple A Country Awards 2011, • Adman Award in the Silver category for the “Cookie Boy” from The Asset magazine TV commercial, which was the highest prize in the • Best Local Currency Bond and Best Thailand Deal awards Finance & Insurance category of the Adman Awards in the FinanceAsia Achievement Awards 2011 project, & Symposium 2011 for our distribution of inflation-linked bonds, organized by • Best Deal of the Year award from Alpha Southeast Asia FinanceAsia magazine magazine and Solar Best Deal of the Year award • Best Trade Finance Bank award from Global Review from Project Finance magazine, for our efforts in offering magazine advisory services and financial support for the construction • Best Foreign Exchange Bank 2011 award from FinanceAsia of solar power plant projects magazine • Best Project Finance Deal of the Year in Southeast Asia • Asia Risk Awards 2011, House of the Year of Thailand, award as a financial advisor, and Best Project Finance by Asia Risk magazine Deal of the Year in Southeast Asia award as a syndicate • Thailand’s Most Innovative Companies Award 2011 loan provider, for 2010/2011, from Project Finance in the Service category, from the Faculty of Commerce magazine and Accountancy, Chulalongkorn University • Best Retail Bank in Thailand award for the second • Top Company for Leaders Award (TCFL), with KBank consecutive year, and Best Retail Banking Brand award being ranked in the Top 20 of the Asia-Pacific region, from The Asian Banker journal (KBank is the only from Fortune magazine in coordination with Aon Hewitt Thai bank to receive this award in 2011.) of Aon Corporation • Best Retail Bank of the Year 2011 award for the fourth consecutive year, and the Most Attractive Booth award for the fifth consecutive year, at the Money Expo 2011, from Money and Banking magazine • VISA Debit Innovation Award 2010 from Visa International (Asia Pacific) Ltd.

2 Complete details of marks of recognitions and rewards can be viewed in the “Awards and Commendations” section of the 2011 Annual Report. Annual Report 2011 Management Report 015

In 2012, KGroup will adhere to our “Customer-Centricity” the number of customers with high potential, and in holding strategy by striving to satisfy the needs of customers with of products generating high fee income. In addition to our the unsurpassed quality of financial products and services efforts to improve operational procedures, plus management from all six companies in KGroup, under K Excellence, of loan portfolio and asset quality, cordial relationships with as well as our K Now project that encompasses a broad customers will be further strengthened, through our customer array of supports over and beyond financial services. relationship management - in both business and personal Under the K Now project, customers’ quality of life perspectives - by fostering more effective collaboration will be enhanced through our innovative and value-added with our sales and service channel units. products and services that better meet all needs at • Retail Customers: We continue to place an emphasis each customer’s life stage. To achieve this end, upon being the main bank for customers and customers we have tailored our main strategies into three main generating high income for KGroup. In achieving this goal, areas: Product via creation of innovative products to brand communications and marketing capabilities will be meet the customers’ needs in a timely manner; Branding further strengthened, in addition to more effective and Marketing through clarity and consistency of management of the sales and service network, plus their the brand at all levels; and Service Quality by the delivery service quality and efficiency. of the finest service experience for all customers through Aside from those aforementioned plans, KGroup has our various service channels. also paid attention to other infrastructure enhancements, In addition, KGroup has outlined our strategy to including efficient cost management, risk management support the diverse needs of each customer segment, that aligns with external circumstances, human resource as follows: development and IT improvement, all of which will help • Corporate Customers: Aiming to become the trusted ensure that our strategic and business goals will be partner of our customers, KGroup will continue to emphasize achieved as planned. enhancing value creation of our customers and their trade partners’ businesses, from upstream to downstream, for their Corporate Governance sustainable business success. In achieving this objective, KASIKORNBANK believes that good corporate complete financial service solutions and advisory services governance is a key factor to sustain our business will be offered to meet the financial and non-financial needs undertakings and enabling the Bank to attain our ultimate of these customers. goals for the maximum benefit of shareholders. It will not • SME Customers: Determined to maintain our only lead to sound and transparent management under a clear leadership in the overall SME market and in all areas with standard, which will enhance the Bank’s competitiveness, potential, we will continually focus on effective and ongoing but also result in greater confidence among local and foreign marketing communications, together with increases in shareholders, and all involved stakeholders. The Bank has, Annual Report 2011 016 Management Report

therefore, continued to place significant emphasis on KBank also continued to place importance on corporate corporate governance practices. social responsibility (CSR) activities. The Board of Directors Aside from the review of related principles, and formulated a relevant policy to welcome participation of arrangement of transparent and efficient Annual General employees, customers, society and the community towards Meetings in accordance with the regulatory requirements and sustainable development. During 2011, many CSR projects the Statement of Corporate Governance Principles, the Bank’s and activities were carried out continuously, including notable actions in 2011 included the implementation of K SME Care; the “Green Building” project to enhance energy corporate governance activities based on efforts to maintain savings with fluorescent tubes and energy-efficient air our standards, and to develop corporate governance conditioners; the project of ATM, CDM and PUM slip size on a continuous and sustainable basis. To promote reduction; the project of “KASIKORN staff joined to Clean corporate governance as our organizational culture, Chao Phraya River” (arranged for the second consecutive internal communications were regularly made with directors, year); the recognition program for employees, as well as executives and employees on the topics of corporate the Sino-Thai Forum project. These activities have governance principles and compliance with the Code of emphasized our commitment to undertake business based Conduct. A notification system was set up for directors on good corporate governance principles, together with and executives, in order to minimize risks from omission of responsibility towards the environment and society. duty or non-compliance. Moreover, the KGroup CG Index was initiated during the year for monitoring and assessing 2. Operating Performance and Financial Position the corporate governance performance of KGroup and Analysis companies providing service support for KGroup. 2.1 Operating Performance In 2011, with our dedication and effort to continually The Bank’s consolidated net income for 2011 totaled promote corporate governance, KASIKORNBANK was Baht 24,226 million, increasing by Baht 4,179 million, awarded many marks of recognition for outstanding equivalent to a 20.85 percent over-year growth. This increase corporate governance, including the NACC Integrity Award was mainly attributable to an increase in net interest income, for two consecutive years, from the National Anti-Corruption as a result of loan growth and a consequence of asset Commission; and the SET Award of Honor for Continuous and liability management to align with interest rate trend. Excellence in Corporate Governance Report 2008 - 2011, Consequently, our net interest margin equaled 3.75 percent from the Stock Exchange of Thailand (SET) and Money in 2011. In the meantime, our non-interest income & Banking magazine at the SET Awards 2011 ceremony. grew by 19.78 percent over-year, led by continued In addition, the Bank has achieved “Excellence” in rating growth of net fees and service income, in alignment scores for corporate governance and quality assessment with our “Customer-Centricity” strategy. Meanwhile, results of the Annual General Meetings of Shareholders of our efficiency ratio stood at 47.53 percent for 2011, listed companies for many years running.3 better than the previous year.

3 Details of marks of recognition and awards related to corporate governance can be viewed in the “Awards and Commendations” section of the 2011 Annual Report. Annual Report 2011 Management Report 017

Operating Performance for 2011 (Units: Million Baht) Change 2011 2010 Million Baht Percent Interest income 83,693 62,271 21,422 34.40 Interest expenses 27,202 15,527 11,675 75.19 Interest income - net 56,491 46,744 9,747 20.85 Fees and service income - net 20,637 18,227 2,410 13.22 Other income 45,087 35,394 9,693 27.39 Total operating income 122,215 100,365 21,850 21.77 Underwriting expenses 31,707 25,221 6,486 25.72 Total operating income - net 90,508 75,144 15,364 20.45 Total other operating expenses 43,019 38,003 5,016 13.20 Operating profit (Before impairment loss on loans and debt securities, and income tax expense) 47,489 37,141 10,348 27.86 Impairment loss on loans and debt securities 7,345 6,701 644 9.61 Income tax expense 13,962 9,094 4,868 53.53 Net profit 26,182 21,346 4,836 22.66 Net profit attributable to: Equity holders of the Bank 24,226 20,047 4,179 20.85 Non-controlling interests 1,956 1,299 657 50.58 Net profit 26,182 21,346 4,836 22.66

In the report for the quarter ending September 30, in the fourth quarter of 2011, in accordance with 2011, according to the Cabinet’s resolution, the Bank International Accounting Standards. However, this is and subsidiaries disclosed the impact of a reduction a one-time impact. Since this is an accounting item in corporate income tax rate from 30 percent of taxable profit adjustment, it does not involve the actual tax payment to 23 percent in 2012 and 20 percent in 2013 to 2014. to the Revenue Department. Apparently, the Bank On December 21, 2011, the Royal Decree was published and subsidiaries’ business undertakings, profitability announcing the adoption of the reduction in corporate and capital fund have not been affected. The Bank income tax rate. The Bank and subsidiaries recognized and subsidiaries will thus benefit from this corporate the item of deferred tax in the income statement income tax rate reduction from 2012 onwards. Annual Report 2011 018 Management Report

Income Structure (Units: Million Baht) Change 2011 2010 Million Baht Percent Interest income Interbank and money market items 7,178 2,363 4,815 203.77 Deposits 288 80 208 260.00 Loans without repurchase agreements 75 16 59 368.75 Repurchase agreements 6,815 2,267 4,548 200.62 Investments 8,414 6,929 1,485 21.43 Trading investments 285 279 6 2.15 Available-for-sale investments 4,259 3,602 657 18.24 Held-to-maturity investments 3,870 3,048 822 26.97 Loans 64,801 49,895 14,906 29.87 Finance leases 3,327 2,892 435 15.04 Others (27) 192 (219) (114.06) Total interest income 83,693 62,271 21,422 34.40 Total interest expenses 27,202 15,527 11,675 75.19 Total interest income - net 56,491 46,744 9,747 20.85 Non-interest income Fees and service income 26,072 22,821 3,251 14.25 Fees and service expenses 5,435 4,594 841 18.31 Fees and service income - net 20,637 18,227 2,410 13.22 Gain on trading and foreign exchange transactions 5,214 4,465 749 16.77 Gain (loss) on financial liabilities designated at fair value through profit or loss (54) (94) 40 (42.55) Gain (loss) on investments 806 610 196 32.13 Share of profit from investments using equity method 13 6 7 116.67 Dividend income 784 661 123 18.61 Earned premium 37,118 29,090 8,028 27.60 Other operating income 1,206 656 550 83.84 Less Underwriting expenses 31,707 25,221 6,486 25.72 Total non-interest income 34,017 28,400 5,617 19.78 Total operating income - net 90,508 75,144 15,364 20.45 Annual Report 2011 Management Report 019

Net Interest Income that partly came from gains on sales of non-performing The Bank’s consolidated net interest income for 2011 assets in 2011. rose over the previous year, due mainly to increased The over-year increase in our net fees and service interest income - as a result of an increase in interest income income was due primarily to the increase in fees from sales from loans, following larger average loan volume and higher of products and financial services, such as card businesses lending rates during the period. Meanwhile, our interest and transfer payments, fees from securities underwriting expense increased over-year, in light of increased interest representatives, as well as fees from loan-related business expense on deposits that largely came from higher interest that drew support from larger loan volume. All of which expenses from our offering of special fixed-term deposit was a result of our “Customer-Centricity” strategy, leading to products, rising benchmark interest rates, as well as continual growth in the number of new customers. an increase in average deposits. In addition, the Bank continued to maintain sound asset and liability structure, Other Operating Expenses ensuring its alignment with interest rate trends. As a result, The Bank’s consolidated other operating expenses our net interest margin equaled 3.75 percent, higher than for 2011 rose over the previous year. This was mainly the 3.48 percent in 2010. the result of an increase in personnel expenses, in tandem with increased salary and number of staff, as well as special Non-Interest Income benefits to employees. Consequently, the efficiency ratio For 2011, the Bank’s consolidated non-interest income in 2011 equaled 47.53 percent, better than the 50.57 percent increased over the previous year. Of note was an increase in the previous year. in net fees and service income, a Baht 1,542 million increase in earned premium net of underwriting expenses Impairment Loss on Loans and Debt Securities from Muang Thai Life Assurance Company Limited (MTL), For 2011, the Bank and our subsidiaries set aside equivalent to a 39.86 percent growth over-year. Additionally, higher allowances for impairment loss of loans and debt the increase was attributable to gains on trading and foreign securities than the previous year. This was mainly in exchange transactions, as well as other operating income response to the changing economic environment. Annual Report 2011 020 Management Report

2.2 Financial Position Analysis

Assets and Liabilities Structure

Units: Million Baht 2,000,000

5% 1,600,000 3% 6% 7% 6% 2% 6% 6% 7% 15% 3% 16% 6% 5% 1,200,000 2% 80% 6% 70% 70% 79% 800,000

400,000

0 Dec. 31, 2010 Dec. 31, 2011 Loans to customers and accrued interest receivables Deposits Investments - net Debts issued and borrowings Interbank and money market items - net (asset) Interbank and money market items (liability) Cash Life policy reserve Other assets Other liabilities

Assets Meanwhile, our net non-performing loans4 (Net NPLs) As of December 31, 2011, the Bank’s consolidated ratio to total loans, at the end of 2011, equaled 1.15 percent, assets totaled Baht 1,722,940 million, increasing by down from 1.43 percent at the end of 2010. Similarly, Baht 176,276 million, or 11.40 percent, over the end of 2010. the gross NPL ratio to total loans was at 2.45 percent The increase was mainly attributable to increases in loans, at the end of 2011, dropping from 2.91 percent at the end net interbank and money market items (asset), as well as of 2010. Such NPL ratio decreases were due to growth net investments, as follows: in total loans and a decrease in bad debts. • The Bank’s consolidated loans, at the end of 2011, • Net interbank and money market items (asset), totaled Baht 1,210,834 million, growing by Baht 133,853 at the end of 2011, amounted to Baht 111,969 million, million over-year, or 12.43 percent, due primarily to increases up by Baht 14,409 million, or 14.77 percent, over the end in commercial, housing, and working capital loans that aimed of 2010. This was as a result of the Bank’s liquidity at providing liquidity support to our business customers. management. Our consolidated loans were the fourth-largest among • Net investments, at the end of 2011, equaled the group of large commercial banks. Baht 264,143 million, increasing by Baht 13,063 million, or 5.20 percent, over the end of 2010, mainly due to investments from MTL. 4 Details of non-performing loans are shown in the “Non-Performing Loans and Debt Restructuring” of the “Credit Risk Management” section. Annual Report 2011 Management Report 021

Investments

Units: Million Baht 300,000

14,255 250,000 13,770 9,496 8,201 32,991 19,325 200,000 209,600 207,387

150,000

100,000

50,000

0 Dec. 31, 2010 Dec. 31, 2011

Government and State Enterprise Securities Private Enterprise Debt Instruments Foreign Debt Instruments Equity Securities

Liabilities and Equity • Debts issued and borrowings, at the end of 2011, The consolidated liabilities of the Bank, at the end totaled Baht 70,303 million, down by Baht 18,629 million, of 2011, totaled Baht 1,555,974 million, increasing by or 20.95 percent, from the end of 2010, largely as a result Baht 154,797 million, or 11.05 percent, over the end of 2010. of bills of exchange that came to maturity. The increase was mainly the result of deposits, as well as At the end of 2011, total equity attributable to equity interbank and money market items (liability). Meanwhile, holders of the Bank equaled Baht 154,799 million, debts issued and borrowings dropped. Consolidated increasing by Baht 19,856 million, or 14.71 percent, liabilities that had changed significantly relative to over the end of 2010. This increase was the result of the previous year included: higher net operating income for 2011. • Deposits, at the end of 2011, amounted to Baht 1,242,229 million, increasing by Baht 142,193 million, Relationship Between Sources and Uses of Funds or 12.93 percent, over the end of 2010. This was due At the end of 2011, the funding structure as shown mainly to increased special fixed-term deposits offering in the consolidated financial statement comprised more alternatives for customers. Our consolidated Baht 1,555,974 million in liabilities and Baht 166,965 deposits were the third-largest among the group of large million in total equity, resulting in a debt-to-equity commercial banks. ratio of 9.32. The major source of funds on the liabilities • Interbank and money market items (liability), side was deposits, which equaled Baht 1,242,229 million, at the end of 2011, equaled Baht 53,340 million, increasing or 72.10 percent of the total. Other sources of by Baht 20,276 million, or 61.32 percent, over the end funds included interbank and money market items of 2010. This was mainly the consequence of our asset as well as debts issued and borrowings, which accounted and liabilities management, part of which was from for 3.10 percent and 4.08 percent of the total, respectively. an increase in private repurchase transactions. Annual Report 2011 022 Management Report

The Bank and subsidiaries’ major use of funds it in various selections of liquid assets, such as was loans. At the end of 2011, loans amounted to interbank and money market items, and investments Baht 1,210,834 million, resulting in a loan-to-deposit in securities. ratio of 97.47 percent. Meanwhile, the loan-to-deposit The major sources and uses of funds, as of plus bills of exchange ratio was 94.72 percent. the end of 2011, are categorized by contractual maturity As for the remaining liquidity, the Bank invested periods shown in the following table:

The Bank and Subsidiaries’ Major Sources and Uses of Funds (Units: Million Baht) Deposits Loans Period Dec. 31, 2011 Percent Dec. 31, 2010 Percent Dec. 31, 2011 Percent Dec. 31, 2010 Percent ≤ 1 Year 1,195,278 96.22 998,405 90.76 587,763 48.54 545,588 50.66 > 1 Year to 5 Years 46,951 3.78 101,631 9.24 292,340 24.14 272,145 25.27 > 5 Years - - - - 330,731 27.32 259,248 24.07 Total 1,242,229 100.00 1,100,036 100.00 1,210,834 100.00 1,076,981 100.00

The Bank and subsidiaries’ deposits with remaining million, or 27.57 percent, over the Baht 259,248 million maturities of less than or equal to 1 year at the end of 2011 at the end of 2010. totaled Baht 1,195,278 million, increasing by Baht 196,873 From the above table, it can be seen that, as of million, or 19.72 percent, over the Baht 998,405 million December 31, 2011, deposits with remaining maturities of at the end of 2010. Deposits with remaining maturities of less than or equal to 1 year were larger than loans with over 1 year at the end of 2011 were Baht 46,951 million, remaining maturities of less than or equal to 1 year. This is dropping by Baht 54,680 million, or 53.80 percent, considered normal for commercial banks in Thailand, as they from the Baht 101,631 million at the end of 2010. normally fund their lending or investments in long-term assets At the end of 2011, the Bank and subsidiaries had loans from short-term liabilities. However, since most deposits are with remaining maturities of less than or equal to 1 year renewed upon maturity, it is considered likely that they will totaling Baht 587,763 million, increasing by Baht 42,175 remain with the Bank longer than their stated contractual term, million, or 7.73 percent, over the Baht 545,588 million thereby helping to support funding for the Bank’s lending. at the end of 2010. Loans with remaining maturities of over In order to enhance flexibility and variety in the Bank’s 1 year up to 5 years amounted to Baht 292,340 million, funding structure, as well as provide more alternatives increasing by Baht 20,195 million, or 7.42 percent, in investments for the public and the Bank’s depositors, over the Baht 272,145 million at the end of 2010. the Bank has offered “K-B/E Investment” products to both In addition, loans with remaining maturities of over 5 years retail and corporate customers, with their outstanding value equaled Baht 330,731 million, increasing by Baht 71,483 totaling Baht 36,072 million as of December 31, 2011. Annual Report 2011 Management Report 023

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

KASIKORNBANK’s Loans Classified by Business and Product Groups* (Units: Million Baht) Dec. 31, 2011 Dec. 31, 2010** Corporate SME Retail Corporate SME Retail Business Business Business Business Business Business Loans 351,694 439,076 253,991 321,487 393,733 213,164 Domestic credit loans 251,964 399,819 227,282 365,145 Trade finance loans 88,348 39,257 84,518 28,588 BIBF loans 11,382 9,687 Housing loans 184,900 159,751 Credit card loans 42,179 36,719 Consumer loans 26,912 16,694

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

Regarding the Bank’s loans classified by business of Baht 40,827 million, or 19.15 percent, over the end of and product groups, Corporate Business loans increased by 2010, in light of increases in all products, with housing loans Baht 30,207 million, or 9.40 percent, over the end of 2010, recording the highest growth rate in terms of loan volume, as a result of loan growth in all products, mainly from boosted by our efforts to maintain good relationships domestic credit loans, mostly seen in long-term credits with leading property developer allies, and our unique of utility, real estate, hotel and restaurant businesses. marketing campaigns that meet the needs of all customer In the same direction, SME Business loans increased segments. Additionally, the increase in housing loans was by Baht 45,343 million, or 11.52 percent, over the end of supported by our measures to relief flood-affected customers. 2010, due to increases in all products led by higher domestic Meanwhile, consumer loans recorded the highest growth rate credit loans, seen in long-term loans of agriculture, trading, over the previous year, due to our continued efforts to and processed agricultural businesses. Our Retail Business offer sales promotional campaigns that effectively meet loans, at the end of 2011, also reported healthy growth the needs of target customers. Annual Report 2011 024 Management Report

Deposits Classified by Type of Deposit Accounts

KASIKORNBANK’s Deposits* (Units: Million Baht) Percent Deposits Change of Total Deposits Dec. 31, 2011 Dec. 31, 2010 Million Baht Percent Total Deposits 100.00 1,243,860 1,102,229 141,631 12.85 Current accounts 5.37 66,833 61,698 5,135 8.32 Savings accounts 55.32 688,037 688,650 (613) (0.09) Fixed-term deposit accounts 39.31 488,990 351,881 137,109 38.96

Note: * Bank only

At the end of 2011, total deposits - comprising deposits after the continual hike during the first-nine months of 2011. of our Corporate, SME and Retail Business customers - had The Bank continued to pursue our strategy of increasing increased by Baht 141,631 million, or 12.85 percent, transaction volume with other financial institutions to enlarge over the end of 2010. This was mainly attributable to our borrowing and lending sources for regular adjustment increases in fixed-term deposits, as the Bank has offered of liquidity position with the money market situations. special deposit products carrying attractive returns in different This has also helped sustain our status of the BOT-appointed periods that meet the varied needs of customers. primary dealer. Meanwhile, the Bank continued to support the BOT’s 2.4 Treasury Operations effort to jointly develop the “Bangkok Interbank Offered Rate” In 2011, the Bank maintained our focus on proper (BIBOR) with all primary dealers, by means of tackling the liquidity management, in response to changing economic prevailing problems and obstacles, increasing transaction circumstances at home and abroad, as well as interest rate volume in the money market, particularly for 3-month tenors, direction in the money market as per the BOT’s monetary as well as extending BIBOR-linked loans and derivatives, policy. As of the end of November 2011, the BOT resolved all of which has helped promote BIBOR as another reliable to cut the policy rate by 0.25 percent to 3.25 percent reference rate in the money market. Annual Report 2011 Management Report 025

Treasury Operations Income (Units: Million Baht) Percent Change Income Structure of Treasury Operations of Total 2011 2010 (Banking Book) Income Million Baht Percent Interest income* Interbank and money market items** 61.95 6,998 2,289 4,709 205.72 Investments 38.05 4,299 4,075 224 5.50 Total 100.00 11,297 6,364 4,933 77.51

Note: * Managerial figures ** Including loans

In 2011, total interest income, contributed from our This was the consequence of an over-year increase in liquidity treasury operations (banking book), was Baht 11,297 million, of around Baht 60,000 million, coupled with an upward rising by Baht 4,933 million, or 77.51 percent, from 2010. interest rate trend during the first three quarters of 2011.

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

Operating Performance of K Companies* and Muang Thai Life Assurance Co., Ltd. (Units: Million Baht) Performance Measurement 2011 2010 KASIKORN FACTORY AND EQUIPMENT Co., Ltd. (KF&E) Outstanding Loans 8,013 3,912 KASIKORN LEASING Co., Ltd. (KLeasing) Outstanding Loans 63,832 53,908 KASIKORN ASSET MANAGEMENT Co., Ltd. (KAsset) Assets under Management (AUM) 741,827 634,834 Market Share (Percent) 24.61 22.02 KASIKORN SECURITIES PCL. (KSecurities) Trading Volume 411,392 429,985 Market Share (Percent) 3.29 3.47 Muang Thai Life Assurance Co., Ltd. (MTL) Earned Premium 37,886 29,649 Market Share (Percent) 11.51 10.01

Note: * KResearch is not included, as the company does not engage in financial business. Annual Report 2011 026 Management Report

During 2011, K Companies showed satisfactory and awarded many marks of recognition, such as the Best quantitative and qualitative operating performance, attributable Car Leasing of the Year award for the third consecutive year, to the earnest cooperation of all departments in KGroup. granted by Grand Prix International Co., Ltd., at the Bangkok Sound performance of KSecurities was witnessed through International Motor Show. continued growth in their revenue and profits by 18.42 percent KF&E reported significant loan growth over-year, and 24.19 percent, respectively, over 2010. For investment in alignment with the company’s loan growth target for banking business, the company focused on joining hands overall 2011. In addition, the company has been working with the Bank in regularly introducing financial solutions to together with KBank through relationship managers (RM), satisfy our customers. Moreover, the company continued with an aspiration to become a market leader in the near to make progress on opening up new branches, located future. in KBank branch areas, for greater service efficiency. For MTL, their notable development included efficiency Other securities products have been developed continuously, enhancement for bancassurance services, and coordinated in order to meet all customer needs and to prepare us for efforts with the Bank to jointly improve insurance policies the securities business liberalization in 2012, as well as to better match customer needs, all of which resulted striving towards our goal in becoming the market leader in outstanding growth in MTL’s earned premium from within three years. bancassurance channel, and their ability to maintain During 2011, assets under management (AUM) of the first-place rank in bancassurance’s new business KAsset grew by 16.85 percent over-year, significantly above premium. In response to continued dedication in developing the market average growth rate of 4.56 percent. The company products and services, the company was also awarded also reported their AUM market share of 24.61 percent, many commendations, including the First Winner of which was the largest market share in mutual, private and the Life Insurance Company with Outstanding Management provident funds business, under the synergy with the Bank award for five consecutive years (2006 - 2010) from the Office for development of products that efficiently meet the needs of Insurance Commission; the Superbrands Award for of customers, expansion of electronic channels and delivery of the fifth consecutive year (2006 - 2010) from Superbrands excellent service quality. Thailand; and the Trusted Brand Awards 2011 (Gold) for KLeasing also reported satisfactory loan growth, the second consecutive year (2010 - 2011) by Reader’s although the automotive manufacturing industry in Digest magazine. Thailand was severely affected by Japan’s disasters and massive flooding in Thailand during 2011. Meanwhile, 2.6 Capital Requirements and Credit Ratings the company has continued to improve their asset quality, Capital Funds with a lower-than-expected ratio of NPLs to total loans As of December 31, 2011, the Bank had capital funds of only 1.04 percent. Upon coordination with the Bank, of Baht 175,246 million, consisting of Baht 122,228 million the company opened up two new branches to serve the wider in Tier-1 capital, and Baht 53,018 million in Tier-2 capital. group of customers, and offered various sales promotional The capital adequacy ratio of the Bank was 13.81 percent, campaigns for both retail and SME customers, such as significantly above the Bank of Thailand’s minimum K-SME Leasing Plus. With such dedication and efforts, requirement of 8.50 percent. Details of the capital adequacy the company’s business achievement was applauded ratio of the Bank are shown in the following table:

Annual Report 2011 Management Report 027

Capital Adequacy Ratio* (Units: Percent) Capital Adequacy Ratio Dec. 31, 2011 Sep. 30, 2011 Jun. 30, 2011 Mar. 31, 2011 Dec. 31, 2010 Tier-1 Capital Ratio 9.63 9.72 9.18 9.43 9.37 Tier-2 Capital Ratio 4.18 4.18 4.39 4.61 4.59 Capital Adequacy Ratio 13.81 13.90 13.57 14.04 13.96

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

Capital Adequacy Ratio (Including the net profit of each accounting period) (Units: Percent) Capital Adequacy Ratio Dec. 31, 2011 Sep. 30, 2011 Jun. 30, 2011 Mar. 31, 2011 Dec. 31, 2010 Tier-1 Capital Ratio 10.56 10.27 10.23 10.80 10.24 Tier-2 Capital Ratio 4.17 4.18 4.39 4.62 4.59 Capital Adequacy Ratio 14.73 14.45 14.62 15.42 14.83

Maintenance of Ratios Credit Ratings The Bank maintains liquid assets, on average, In 2011, Standard & Poor’s upgraded the Bank’s of at least 6.00 percent of deposits and some kinds of long-term counterparty credit rating and the Bank’s borrowing, in compliance with the Bank of Thailand’s long-term ASEAN regional scale rating to “BBB+” and “axA+” regulations. As of December 31, 2011, the Bank had cash from “BBB” and “axA”, respectively. Meanwhile, the Bank’s in hand, cash at central cash centers, deposits with credit ratings given by Moody’s Investors Service and the Bank of Thailand and eligible securities, totaling Baht Fitch Ratings remained unchanged from year-end 2010. 265,697 million. Details are shown in the following table: Annual Report 2011 028 Management Report

KASIKORNBANK Credit Ratings Credit Ratings Agency Dec. 31, 2011 Dec. 31, 2010 Moody’s Investors Service** Foreign Currency Outlook Stable Stable Long-term - Debt n.a.* n.a.* - Deposit Baa1 Baa1 Short-term - Debt/Deposit P-2 P-2 Subordinated Debt Baa1 Baa1 Bank Financial Strength Rating (BFSR) D+ D+ Outlook for BFSR Stable Stable Baseline Credit Assessment Baa3 n.a. Domestic Currency Outlook Stable Stable Long-term - Deposit A3 A3 Short-term - Debt/Deposit P-1 P-1 Standard & Poor’s** Global Scale Ratings Outlook Stable Stable Long-term Counterparty Credit Rating BBB+ BBB Long-term Certificate of Deposit BBB+ BBB Short-term Counterparty Credit Rating A-2 A-2 Short-term Certificate of Deposit A-2 A-2 Subordinated Debt (Foreign Currency) BBB BBB- ASEAN Regional Scale Ratings Long-term axA+ axA Short-term axA-1 axA-1

Note: * Moody’s Investors Service does not assign ratings to the Bank’s long-term debt. ** The base levels for investment grade on long-term credit ratings for Moody’s Investors Service, Standard & Poor’s, and Fitch Ratings are Baa3, BBB- and BBB-, respectively. For short-term credit ratings, the base levels for investment grade as viewed by these three agencies are P-3, A-3, and F3, respectively. Annual Report 2011 Management Report 029

KASIKORNBANK Credit Ratings Credit Ratings Agency Dec. 31, 2011 Dec. 31, 2010 Fitch Ratings** International Credit Ratings (Foreign Currency) Outlook Stable Stable Long-term Issuer Default Rating BBB+ BBB+ Short-term Issuer Default Rating F2 F2 Subordinated Debt BBB BBB Viability bbb+ n.a. Individual C C Support 2 2 Support Rating Floor BBB- BBB- National Credit Ratings Outlook Stable Stable Long-term AA (tha) AA (tha) Short-term F1+ (tha) F1+ (tha) Subordinated Debt AA- (tha) AA- (tha)

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

3. Operations of Core Businesses has been achieved through our harmonious efforts 3.1 Business Overview in effective business development among all customer KASIKORNBANKGROUP continued to pursue our segments, product domains, as well as major sales “Customer-Centricity” strategy. This strategic goal and service channels. In essence: Annual Report 2011 030 Management Report

KASIKORNBANKGROUP

Corporate Business SME Business Retail Business

Multi- Large Small and High Net Eight Customer Corporate Corporate Medium Micro Worth Affluent Middle Mass Segments Business Business Business Business Individual Income

• Domestic Branch • THE WISDOM Exclusive Center • K-WePlan Branch • SME Business Center Sales & Service • Foreign Exchange Booth • THE WISDOM Corner • Corporate Business Center • Cheque Point Channels • K-Safe Deposit Box Center • THE WISDOM K-Safe Deposit Box Center • Corporate & SME Service Center • Overseas Office

Four Product Operation & Saving & Investing Funding & Borrowing Protection & Domains Transaction Information

3.2 Customer Segments with our business allies at the personal and organizational Multi-Corporate Business levels. In addition, the Bank continued to focus on The Bank strived to satisfy the needs of customers becoming a knowledge-based organization, while staff and their trade partners, from upstream to downstream, development was further implemented for their greater with Value Chain Solution and Integrated Cash Management capability in offering client-responsive products Solution featuring innovations beyond financial products and services, specialized advice, as well as appropriate under the synergy within KASIKORNBANKGROUP. financial solutions suitable to each customer and the nature During 2011, our service solutions were provided to our target of their business. As alternative or renewable energies were customers in infrastructure, real estate, transportation, among our main focus during the year, we were involved commerce, automotive and auto parts, petrochemical in providing advisory services and financial supports to and food processing businesses. Aiming at becoming more than 20 solar and at least three wind power plant the main bank for Multi-Corporate Business customers projects. Moreover, relevant measures were launched in many industries and achieving quality growth, to assist flood-affected customers, including those located with sustainable customer relationships for future business in industrial parks, as well as other involved companies, opportunities, we have strengthened relationships staff and industries. Annual Report 2011 Management Report 031

Large Corporate Business key industries, including hotel, apartment, auto parts, Amid a number of negative factors, particularly the 2011 processed agricultural products, logistics, international trade, flood crisis, affecting our customer businesses directly contractor, as well as electronics and electrical appliance and indirectly, KBank offered relief measures including parts. Our operating procedures and services at branches an unlimited credit line via loans for business recovery, and Corporate & SME Service Centers have been upgraded K-Equipment Leasing and K-Supplier Financing, for faster service delivery, in addition to the launch of our by considering the damages and needs of each business. “24/7 Business Assistant” teams for entrepreneur customers. So doing allowed the Bank to take part in rehabilitating Meanwhile, the Bank introduced two newly developed customers’ businesses and provided them with complete products and services, including K-Trade Premier assistance, including advisory services for reorganization and “SME Super Trade Credit” programs that cover and business expansion, acting as a facilitator for acquiring pre- and post-financing support for all international trade new markets and alternative material sources, offering customers in a more timely manner. Under the “ME Academy” of cash and risk management, as well as expanding project, the Bank has equipped our entrepreneur customers our assistance to cover the staff of our customers. with useful knowledge, while enhancing their business Also, KBank continuously focused on and provided support expansion opportunities through business matching for sustained growth of family businesses by setting up with important partners, such as TV Direct and 7-Catalog. the “KFam Club”, a project to provide business management courses and other beneficial activities to enhance family Small and Micro Business business connections in Thailand and establish healthy Determined to be the Bank for SMEs and to maintain business networks in the future. our largest market share, development has been undertaken for our more diverse, flexible and integrated financial Medium Business products and services to better meet all customer needs, Realizing that SME businesses have faced a number throughout their business stages. Our notable efforts of challenges, KBank has implemented the strategy of included elimination of collateral limits, ensured adequacy Industry Solutions to meet the needs of customers in eight of credit limits and extension of repayment terms, as well as

K-Value Chain Solutions: Comprehensive products for customers along entire value KFam Club: The club for family business networks in Thailand chains, from upstream to downstream Annual Report 2011 032 Management Report

delivery of the finest service experience. In 2011, many sales High Net Worth Individual promotional campaigns were launched for K-SME Credit Understanding and realizing the diverse and distinct customers, such as the “SME Win All” and “SME Get Ready” needs of each customer in this segment, KBank has campaigns. In addition, the Bank has offered assistance adhered to the “When Your Wish is More than Wealth” measures to increase liquidity for flood-affected customers. concept in offering our “KGroup Private Banking” services. These measures included extended grace period for In 2011, KGroup launched the “SET 50 Digital Bullish Note”, principal payment, P/N renewal without required documents, featuring structured notes to satisfy customers who prefer as well as loans for business recovery, covering K-SME to invest in stocks, but need full coverage against potential Flood Relief, K-Equipment Finance and other credit losses, with choices of different return rates, maturity terms facilities that were introduced jointly by the Bank and and risk appetite levels. KGroup also offered the K SMART specialized financial institutions (SFIs). Our focus was also CLN 1 YEAR A fund, investing in credit-linked notes, with on promoting business sustainability for potential Thai SMEs dividend payments depending on credit rating or incidents that by equipping them with knowledge via “Training Series” may affect repayment ability of assets. Additionally, as part of for the business owner and successors. Over the past our attempt to facilitate High Net Worth customers, wishing to four years, 15 classes have been organized for SME diversify their bank deposits amid the reduced deposit customers under these series. In addition, the Bank joined protection limit by the Deposit Protection Agency, hands with the Department of Industrial Promotion to the “K Principal Protected Thai Fixed Income fund” was arrange a project to support new entrepreneurs, while introduced. Apart from these offerings, the Bank has marketing campaigns were arranged with our business allies. organized a number of activities in connection with customer We took part in launching TV shows - “SME Tee Tak” needs in their everyday life, including Dhamma activities with and “SMEs Flying High with K SME Care” - to offer business the aim of soothing natural disaster victims, and seminar know-how and experience to SME entrepreneurs arrangements on the overall economic environment and in all segments. investment knowledge, amid volatile market conditions.

KGroup held the KGroup Private Banking event for high net worth individual customer “SME Tee Tak” TV show that has earned high audience rating, especially among SME proprietors Annual Report 2011 Management Report 033

Affluent the Bank for this customer segment included opening of Committed to our strategy of increasing the number of THE WISDOM corners in Bangkok and other large provinces, Affluent customers, we have strived to expand our customer in order to deliver superior financial services to all Affluent base and upgrade Middle Income customers, business customers. owners and high-ranking executives of SMEs into the Affluent segment, through cross-selling and increasing their holdings Middle Income of KGroup investment products. In 2011, promotional The Bank has adhered to our strategy of customer-base campaigns were regularly organized for loan and insurance expansion for the Middle Income segment, targeting products, while the “Member Get Members” program served depositors, investors and credit cardholders, by tailoring as a tool for KBank branches to attract new customers products and services to suit the prevailing market through existing customers’ referrals. With the cooperation conditions and the needs of the targeted customers. of the Corporate and SME Business Divisions, KGroup’s Our efforts in accessing those customers included arranging investment advisory managers have been delegated to make activities at their population centers and participating customers’ acquaintance, as well as participate in initiating in activities matching their lifestyles. In 2011, the launch new services and sales promotions. Some of these notable of the “Savings for Future Benefit” campaign enabled projects included “Money Inflow Boost Up”, “K-VIP OD” freelancer and business owner customers - having and “Exclusive SME Credit”, which uniquely catered to limitations in presenting income evidence - to gain better customers’ business and personal needs, and helped access to our lending products through the use of differentiate us from peers. In addition, “THE WISDOM” brand their savings records as an input for loan applications. was continually strengthened for this customer segment, Thus, the number of new customers is reported to have through various advertising media in leading business risen continuously. Meanwhile, customers with potential newspapers and magazines, as well as “THE WISDOM in the Mass segment were upgraded, through our branch of Wealth and Lifestyle” magazine, which was widely officers’ introduction of appropriate products and services distributed for increased awareness of customers and their under the database marketing strategy. Sales promotional acknowledgement of our list of privileges. Another effort by campaigns were made via regular mail, email and SMS,

The Story of Smart Success ISSUE 020 JULY - SEPTEMBER 2011

CENTRICITY

CUSTOMER

THE WISDOM Wealth and Lifestyle Magazine - K-Personal Loan for Pensioner exclusively for Affluent customer segment Annual Report 2011 034 Management Report

for an increase in product holdings and more frequent this product include a service to credit the initial loan amount use of our services. For holders of deposits and/or to a KBank deposit account within one business day after investments with KBank of more than Baht 2 million, the credit line approval, plus preferential interest rates. the Bank has offered them our “KBank THE PREMIER” Also, the Bank joined hands with VISA International Co., Ltd. services, with exclusive privileges. Tailor-made marketing to provide “Mobile Verify by VISA”, the world’s first payment campaigns have been designed specifically to match system via mobile phone, allowing customers to shop online this customer segment’s lifestyles. via their mobile phones. Payments for such transactions can be made by K-Credit Cards, or K-Debit Cards, under the Mass Verified by VISA service. The aforementioned development The strategy of acquiring new customers with potential highlighted our leadership in technology and ensured in the Middle Income segment has remained a priority for customers of payment transaction security. the Bank. Focus has been on university students and those starting their careers, as well as the development of 3.3 Product Domains and Sales Channels responsive products and services for this customer segment. 3.3.1 Product Domains In 2011, the privileges of K-Debit Card were improved to To brace for heightened risk of global and domestic better meet the customers’ lifestyles. In addition, the Bank economic uncertainty, the Bank, in 2011, engaged launched K-Bank to Post, allowing money transfer from in introducing and upgrading our responsive products KBank branches, so their recipients can collect at post offices and services and delivering the finest service experiences to across the country. This service helps enhance convenience customers. Along with this effort, sales promotional activities for customers, who are fund recipients in remote areas where and knowledge-based support were launched to assist there is no bank branch or ATM nearby. The Bank also clients in their decision-making. To this end, our notable developed personal loan products, in terms of a cash card efforts can be classified into four domains, namely Operation under the K-Express Cash service, aimed at helping & Transaction, Saving & Investing, Funding & Borrowing, customers in need of emergency cash. Special features of and Protection & Information. In essence:

K-Bank to Post - offering money transfers from K-ATMs to any local post office K-Express Cash in Thailand Annual Report 2011 Management Report 035

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

“Mobile Verified by VISA” service, the world’s first K-Auto Top Up - One-2-Call Automatic refills of prepaid mobile network service payment system via mobile phones Annual Report 2011 036 Management Report

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

Guaranteed one-day money transfers to China, India and Australia K-My Debit Card, with special designs by Paul Frank Limited Edition, which has been very popular among teen customers Annual Report 2011 Management Report 037

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

K-Max Family Debit Card cares for you and your beloved ones K-Cyber Banking: Our convenient online banking service…banking at your fingertip Annual Report 2011 038 Management Report

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

K-My Debit - Our popular and trendy K Principal Protected Fund for principal protection and high return debit card Annual Report 2011 Management Report 039

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

K Gold ETF (KG659) K India Equity Fund: K-INDIA Annual Report 2011 040 Management Report

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

Long-term equity fund (LTF), Retirement Mutual Fund (RMF) - Attractive K SME Fixed Rate Loans returns Annual Report 2011 Management Report 041

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

K-SME Leasing Plus - a credit line from KLeasing K-Energy Saving Guarantee Program, offering equipment leasing/financing for and a business credit line from KBank energy efficiency projects Annual Report 2011 042 Management Report

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

K SME Flood Relief Loan Annual Report 2011 Management Report 043

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

THE WISDOM cards offer a myriad of benefits for KBank customers SME Super Trade - Export-import credit facilities that meet all needs of proprietors Annual Report 2011 044 Management Report

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

K Home Smiles Club: Comprehensive home-related advisory services Post-flood home renovation with K-Credit card Annual Report 2011 Management Report 045

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

Enjoy every trip with K-Credit Card Pro Saving 1525: Salary Man Life Insurance Package Annual Report 2011 046 Management Report

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

3.3.2 Sales and Service Channels potential and efficiency. Moreover, customer accessibility to Realizing that sales and service channels are one of our main sales and service channels has been promoted, the crucial elements connecting the products and services in order to respond to the needs of customers more of KGroup with each target customer segment, as well as effectively and conveniently both at present and in the future. delivering a satisfactory experience in the use of services to Our notable services offered through each main channel all customers, KGroup has strived to enhance our service in 2011 are summarized as follows:

KBank branches - Everywhere nationwide to ensure customer convenience Annual Report 2011 Management Report 047

Branches and Financial Service Offices/Centers Number of Locations Major Sales Key Implementations in 2011 and Service Channels 2011 2010 Branch Network 816 805 • New branch opening at all target areas: This will provide greater convenience to our customers located at our main potential areas and our business allies who are located near our customers. We have also expanded space for branches with high transaction volumes or relocated branches to areas with impressive business expansion to respond to the diverse needs of target customers. Focus has also been on branch designs to create unique looks for different locations, such as airport WISDOM Lounge window display employed at the Central Lat Phrao branch, or the local-themed design used at the Cheom Panya Trang branch in Trang province. • Launch of new services: In cooperation with True Corporation Plc., we introduced the “Ultra Wi-Fi Experience@KBank” project which allows customers to use wireless Internet service for communications and information search while conducting transactions at branches. Foreign Exchange 99 100 • Convenience enhancement for the use of our services, via arrangements of Booths foreign exchange booths and mobile exchange booths at major tourist spots in provincial areas. Corporate & SME 62 61 • Service enhancement at Corporate & SME Service Centers: After International Service Centers Trade Service offices were renamed as Corporate & SME Service Center, Cheque Points 24 23 the Bank has expanded the scope of services to cover both domestic Corporate Business 8 6 and international trade transactions. These services include Domestic Business Centers Services offering K-Cash Management Solutions for the highest efficiency in cash SME Business Centers* 95 95 management of our customers; International Trade Services for greater convenience, confidence, and business flexibility of our customers with a more timely service delivery and for the highest benefits of our clients; and BIZ Clinic to provide advisory and consulting services with regard to business planning, plus domestic and international trade transactions, free of charge.

Note: * Excluding Corporate & SME Service Centers Annual Report 2011 048 Management Report

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

K Electronic Banking for customer convenience K-MOBILE BANKING: Banking service on mobile phone Annual Report 2011 Management Report 049

Number of Units Electronic Banking Key Implementations in 2011 Services 2011 2010 K-PUM 917 906 • Increase and relocation of K-PUM: The Bank added to the number of K-PUMs (Passbook Update and relocated some of them to a more suitable area, in order to better facilitate Machines) the use of the service.

Internet Banking Key Implementations in 2011 K-Cyber Banking • Introduction of new service: K-Cyber Service - combining three KGroup online services, including K-Cyber Banking, K-Cyber Trade and K-Cyber Invest - was introduced to help enhance customer convenience by means of a single User ID and Password when logging in to the service. • System development: The K-Cyber Banking webpage has been modernized and upgraded to meet the KBank website standard. For instance, displayed information and service explanations have been simplified to be more concise and easy to use, whereas new public relations media have been introduced, so that customers can learn about the use of K-Cyber Banking by themselves. Also, the Bank delivered E-Newsletters for recommending customers to conduct financial transactions via K-Cyber Banking during the flood situation. • Arrangement of sales promotions: This activity aimed at stimulating application and payment, or mobile top-up transactions during the Money Expos, or other E-Commerce events nationwide. K-MOBILE BANKING • Development and public relations program arrangements for new mobile top-up services: SMS A new service under the “Speed Top-Up” system was introduced to customers for facilitating self-service instant airtime refill, through the mobile networks of KBank business allies. • Launch of sales promotional activities: The program “K-MOBILE BANKING SMS - Term Mee Hey (Good News for Mobile Top-up)” has been launched to spur application volume and the use of the service, whereas the K-Salary Benefit 2011 campaign has been introduced to offer a refund credited to the accounts of customers making transactions via K-MOBILE BANKING as per the established conditions. K-MOBILE BANKING • Continued service enhancement: An alternative channel to apply for our “Due Alert” service ATM SIM has been added via K-Contact Center, while the interbank funds transfer system has been updated after the merger of some commercial banks. • System efficiency enhancement: In addition to a replacement of database server, the Bank has added a new participating merchant, including the Expressway Authority of Thailand (EXAT), the operator of the Easy Pass service. K-MOBILE BANKING • Continued service enhancement, for compatibility with Android and Blackberry OS6-based mobile phones PLUS and iPads, thus enabling customers to make financial transactions 24 hours/7 days. Moreover, menus have been added for self-operation and setting-up of email addresses for receiving transaction results. • Service improvements: A new application channel via mobile phones has been added. Also, the database server for this service has been replaced with a new one, while new merchants, such as the Expressway Authority of Thailand (EXAT), the operator of the Easy Pass service, were added to the system of K-MOBILE BANKING PLUS. In addition, the K-MOBILE BANKING PLUS screen for smartphones was developed for friendlier use, with a screen personalization feature. • Arrangement of sales promotion campaigns: KBank joined hands with our business allies to offer an e-coupon, a privilege for customers using services of participating merchants, as well as organizing other sales promotional projects to spur customer applications and financial transactions in each area. Annual Report 2011 050 Management Report

K-Payment Gateway Key Implementations in 2011 K-Payment Gateway • Development of payment system via mobile phones: KBank and VISA International Co., Ltd., jointly launched the “Mobile Verified by VISA” service for enhanced customer convenience and security for online shopping via mobile phones. With this service, customers can make payments with K-Credit Cards, or K-Debit Cards, based on VISA service with One-Time Password (OTP). This service is also the first of its kind in the world. • Service system improvements: To be in line with additional requirements of VISA and/or MasterCard, the template of DCC (Dynamic Currency Conversion) has been changed to show fee rates more clearly. • Arrangement of marketing campaigns: The Bank joined hands with our airline business allies to offer a zero-percent installment payment for the purchase of air tickets via the website. • Continued provision of K-Payment Gateway Clinic: This is to provide online merchants with monthly advisory services about the online credit card payment system. In addition, information on e-commerce and e-banking has also been presented in seminars arranged for executives and business proprietors, for a broadened customer base.

K-Payment Gateway - Enabling online credit card payments K-Direct Debit - Bill payment via K-ATM Annual Report 2011 Management Report 051

K-Contact Center K-Contact Center Key Implementations in 2011 K-Contact Center • Introduction of new services under “Personal Banking, 24 hours, daily by K-Contact Center”: Without having to visit the Bank, customers can use our 11 services that can be divided into two groups, i.e., 1) services that can be completed by K-Contact Center, including K-Econ Analysis application by our Affluent customers or above, and our direct debit services for making funds transfer and bill payments; and 2) services that are performed through K-Contact Center, including opening of mutual funds accounts, the purchase of KAsset LTF and RMF investment units, opening of deposit account and purchase of foreign currencies and travel insurance. • Introduction of KGroup Private Banking Contact Center, specially catering for High Net Worth Individual customers. Through this channel, many special services have been made available, including limousine, Meet & Assist service at airports, as well as medical and personal concierge assistance services. • Expanded Service Scope for KAsset customers: Our customers can now request tax-related certificates and process password resetting for the K-Cyber Invest service, as well as receive information of highly popular funds, such as K-Oil or K-Gold.

K-Contact Center - Assisting you 24/7 KAsset Gold Limited Edition - Gold coin symbolizing never-ending wealth from KGroup Annual Report 2011 052 Management Report

4. Operations of Support Groups behaviors in line with K-Culture and KGroup Core Values, To efficiently pursue our “Customer-Centricity” strategy, have been selected to participate in the Leadership the Bank continued to upgrade all necessary support Development program. Under this process, the Bank functions in the dimensions of organizational culture has provided individual development plans and monitored enhancement and clarification of desirable behaviors the performances of such employees. As a result, as per KGroup Core Values through human resource a number of these employees have been appointed as management. IT management and implementation of KBank leaders and executives. In addition, a succession plan the K-Transformation project also helped facilitate this was formulated to develop personnel with potential to fill strategy. In 2011, notable developments included: vacancies, for which required knowledge and skills for each job position were specified. Meanwhile, assessment Human Resource Management for the Highest Business and learning programs in the form of class training Efficiency of KASIKORNBANKGROUP and E-Learning courses were organized for employees, During 2011, the Bank continued to strengthen in addition to training programs on some specific knowledge K-Culture, promote desirable behaviors as per KGroup and skills needed for the examination for a salesperson Core Values, develop human resources and arrange programs license issued by government agencies. to build positive emotional attachment to the organization. • Staff Retention: Realizing the significance of employee These efforts aimed to promote advancement for employees feedback, the Bank arranged for an employee survey. and business sustainability for the Bank. For human resource The survey results will be used to improve employee management, the number of employees has been increased satisfaction and to create engagement with the organization. in response to our business expansion, particularly in China. The needs and potential of staff in each generation have been Employee potential has been enhanced as follows: managed to promote higher efficiency, happiness and a sense • Recruitment and Allocation of Staff: To support of pride in being a part of the KGroup team. KBank also business expansion in Thailand and China, the Bank provided welfare benefits as per the Labor Protection Law organized “K-Career Day” activities, the “Staff Referral” and the current situation. Our notable efforts included program, as well as the “China Project Career Day” program, the provision of temporary accommodations, home renovation in a bid to meet the Bank’s staff recruitment and allocation loans, as well as high-pressure water washers and cleaning plans. With a large number of candidates, the Bank was tools, for flood-affected employees. Meanwhile, the Bank able to recruit qualified staff, as planned. joined hands with other organizations to support many • Staff Potential Development: Employees with CSR activities, allowing employees to help and strengthen consistently high performance and potential, plus satisfactory relationships among those within the Bank and in society Annual Report 2011 Management Report 053

at large. Such activities included those organized by and IT system continuity to support customers’ service use. the KASIKORN Foundation, the eyeglasses donation project, Our efforts included data center protection and enhancement environmental projects in coordination with Kuiburi National of the remote working system as per the Bank’s standards Park, and projects to provide natural food sources for on security control, thus enabling employees responsible elephants and artificial coral reefs for fish, with overwhelming for some key transactions to continue their operations participation by our employees. during adverse circumstances. • Efforts to Support Business Expansion in China: • IT Outsourcing The China Business Division and China Strategy Development In 2011, revisions were made to the IT outsourcing Unit - Special Project were established to map out business contracts, concerning the areas of application maintenance, expansion strategies that suit each customer segment, plus application development and enhancement, to ensure current competition, as well as an operational system clearer working scopes for better service quality and flexibility, and procedures that are in strict compliance with related at a more reasonable price. During the flooding situation, laws and regulations issued by Thai and Chinese officials. the Bank closely coordinated with IT outsourcing vendors Meanwhile, the organizational structure and positions/ to brace for any disruptive event as per our established functional titles of the China Business and Overseas plans. These plans involved preparation of Critical Skeleton Office Management Department and Shenzhen Branch staff to ensure uninterrupted operations of our critical services, were reorganized, in order to enhance the efficiency of as well as businesscontinuity management, in order to meet strategic formulation and human resource management all customer needs with smooth operations, thus allowing for business operations in China. The structure of relevant us to effectively deliver high-quality products and excellent departments has been improved to better facilitate customer service to our customers. base expansion in China and promote income for the Bank, part of which was achieved through closer relationships K-Transformation with Chinese firms investing in Thailand. The K-Transformation program has been progressing as per KGroup’s long-term strategy of Customer Centricity, IT Management particularly in the areas of business management • IT Security Policy and Infrastructure and other important process development. Meanwhile, Aside from the development of data security and service the new sales and service system has created faster systems of relevant units during 2011, the Bank implemented customer responsiveness and a consistent customer various measures to cope with the impacts of the massive experience across channels. flooding, ensuring uninterrupted business operations Annual Report 2011 054 Management Report

Throughout 2011, major progress was seen 5. KASIKORNBANK’s Investments in in the Multi-Channels Sales & Service (MSS) project. Subsidiary and Associated Companies The new branch infrastructure platform rollout Subsidiary and Associated Companies was completed. Having been deployed to all Bangkok Definitions of subsidiary and associated companies are branches during 2011, the new sales and service solution in alignment with those specified in accounting standards, will be gradually put in place at all branches nationwide wherein the Bank discloses such details in the Notes to by early 2012. Moreover, the newly finished MSS the Financial Statements. integrated with Know Our Customer (KOC) capabilities has increased the effectiveness of campaign execution Investment Policy through the branch platform, thus leading to creation The Bank’s investment policy can be summarized and development of new products, cross-selling as follows: and up-selling, better campaign response rates, • Strategic Investments as well as higher product holding and sales The Bank invests in companies for strategic benefit. amount/transaction volume per customer. The Bank and these companies collaborate on the review Regarding the IT Capital (ITC) program, the new of business strategies and synergies, through the sharing core banking system development has reported of various resources, equipment, tools and channels, ongoing progress. The Bank is now in the process in order to efficiently meet the needs of customers, of system testing to ensure quality and higher security with minimal operational redundancies. of business operations. As per the Bank’s plan, • Outsourcing Investments the new core banking system will be launched The Bank invests in companies that support in 2013, with full functionalities to be completed the Bank’s operations. These are companies providing by 2014. With all of these efforts, the Bank’s services that are not the core business of the Bank, business goals will be reached more efficiently and that would face inflexibility if they were to remain and effectively, through our expanded ability to respond a part of the Bank. Bank executives are appointed as to the needs of customers and differentiate our products directors of these companies to oversee their management and services, thus resulting in higher income than and operating policies, with one director having control that of our rivals. over the firms’ operations. This helps ensure standardized service quality, as well as maximum efficiency and benefits for the Bank. Annual Report 2011 Management Report 055

RISK MANAGEMENT AND RISK FACTORS*

1. Overall Risk Management collection and recovery process is another example KASIKORNBANK’s risk management has been of the Bank’s enhanced credit process. carried out with an aim of supporting our business growth • Emphasis on management of liquidity risk at and sustainable profitability, as well as maximizing an acceptable level: So doing helped ensure sufficient liquidity shareholders’ and investors’ returns. To ensure risk under normal and stressed situations. Along with this, management effectiveness, the Bank adheres to risk the Bank has enhanced the balance of our liquidity management strategies that are in line with best practices. management cost, by fostering close communication between The Bank has engaged in a consolidated risk liquidity managers and business units, conducting an in-depth management framework which emphasizes not only analysis of cash flow transactions through the use of models the management of major risk types, including credit, market, and statistical tools, as well as developing a system for risk liquidity, operational, strategic and other risk management, monitoring and an effective early warning system. In addition, but also the accuracy and completeness of risk management the Bank has arranged a managerial plan to ensure that and capital adequacy disclosure. our liquidity management suits each problem at different degrees of severity. Key Developments to Strengthen Risk Management • Enhancement of market risk management efficiency: Having realized the importance of effective and timely In order to achieve a higher level of efficiency, we have risk management in response to a changing business undertaken the development of advanced tools and environment, KASIKORNBANK has continuously enhanced measurements, which consider market behavior during policies, tools and processes to manage various types of risk. extreme event, to be used as an early warning system. Notable developments in 2011 can be summarized as follows: In addition, close attention has been paid to foreign exchange • Assessment of possible loss and capital adequacy rate movements, due to concerns over the European under stressed situations: This assessment was carried out sovereign debt crisis, which may increase volatility in by integrating various types of risks. The assessment movements of the U.S. Dollar and other major currencies. results are used for effective and timely portfolio management • Enhancement of operational risk management structure: and business decisions, while contingency plans have been To achieve higher efficiency and effectiveness in our operational developed to ensure viable capability in the event of stress. risk management, the Bank established the Operational For instance, a liquidity contingency plan was developed Risk Sub-Committee comprising high-ranking executives for sudden deposit outflow. from various divisions to be responsible for supervising • Efficiency enhancement for credit processes: Our notable relevant parties. So doing helped ensure that they perform improvements were seen in the credit underwriting process, their duties, in accordance with the established operational of which criteria was designated and improved to better suit risk management guidelines under close monitoring. customers’ risks and returns through statistical testing. • Enhancement of risk model governance: This endeavor An improved credit risk management tool that prioritizes is to ensure risk models’ completeness, transparency, debt-collection to achieve greater efficiency in the debt and credibility, while helping to ascertain that the existing risk models or those to be adopted in the future will be accurate * Details of various risk management and other related information, in accordance and function in accordance with the set objectives. Risk model with Pillar 3 requirements of the Bank of Thailand and disclosure principles, are shown in the “Information Disclosure under the Basel II Pillar 3 Principle” governance policy and process have been comprehensively report posted on the Bank’s website. established to include risk model development, validation, approval, application and maintenance. Annual Report 2011 056 Management Report

KASIKORNBANK Risk Management amid Great Flooding 2. Risk Management during 2011 Although credit risk is deemed as the key risk, The massive flooding in 2011 affected the Bank’s the Bank’s risk management aims to develop all types of and our customers’ business operations. In order to risk management, including credit, market, liquidity, prepare for and mitigate any adverse impacts, the Bank operational, strategic, and other risks, as follows: has continued to implement Business Continuity Management (BCM) to ensure uninterrupted business operation Credit Risk Management and services provided to customers during the flooding. “Credit risk” refers to the risk that a counterparty or Moreover, the Business Continuity Plans (BCP) was also borrower may default on contractual obligations or agreements. continually developed through a working team that was Such a default may be caused by the counterparty’s inability responsible for outlining necessary strategies and operational to pay because of financial difficulties, or intention not to directions, as well as setting aside appropriate resources abide by the agreements, resulting in a loss to the Bank. and budgets for related units. The Bank places emphasis on organizing a proper For customers directly and indirectly affected by credit risk management structure, covering policies flooding situation, the Bank has managed our credit risks, that are in line with our strategies and acceptable through stress tests and the survey of flooding impacts risk appetites, check-and-balance organizational structure, on each customers, as well as launches of post-flooding and effective and efficient credit procedures and system, assistance measures, particularly in terms of grace period, under the supervision of the Risk Management Committee, repayment period extension and interest rate reduction. and the Credit Policy and Risk Management Subcommittee. In addition, the Bank has offered financial support - both commercial and retail loans - to affected customers for Credit Risk Management Process their business and asset rehabilitation, while we have The Bank has established the whole credit risk continued to monitor and assess risk levels of these management process and procedure, from beginning to end. participated customers closely, so as to ensure the sound The process and procedure has been developed to credit quality of our overall portfolio. appropriately reflect the prevailing risk for enhanced efficiency in customer responsiveness in a prudent manner. Steps under credit risk management process and procedure are as follows:

Portfolio Underwriting & Collection & Management Approval Monitoring Recovery

• To design portfolio target • To develop credit • To continually monitor • To collect and recover setting and diversification underwriting process and oversee credit quality debts in a swift and efficient in various dimensions and supporting tools, of customers on manner to minimize to meet the Bank’s appropriate for associated a case-by-case basis potential losses desired risk appetite risks of each specific and at the portfolio level and concentration customer group Annual Report 2011 Management Report 057

• Portfolio Management Process underwriting and approval processes, thus meeting customer Focusing on active portfolio management, the Bank needs and achieving their satisfaction. has defined loan targets consistent with the Bank’s business The Bank continuously places emphasis on efficiency goals. To this end, audit and monitoring have been enhancement of credit underwriting process with our strict conducted regularly to meet the Bank’s desired risk appetite adherence to risk control within the specified risk appetite. and concentration. Portfolio quality and return have also • Post-Credit Approval Operations been monitored on a regular basis. In achieving standardized and efficient credit operations, In addition, the Bank has conducted stress tests the Bank has centralized all necessary functions for post-credit for setting appropriate risk management guidelines to cope approval operations, including contract documents, legal with expected impacts on the Bank’s portfolio, to ensure contract-related operations, collateral agreement preparation, sustainable growth of the portfolio. credit-line establishment, credit-related document storage, • Credit Underwriting and Approval Process and credit data support. Meanwhile, the credit quality monitoring The Bank’s credit management is based on up-to-date process has been upgraded, focusing on customer credit use transparent and standardized information. The credit behavior, their business performance, compliance with credit underwriting process and system has been designed to fit contracts, as well as monitoring of debt servicing ability. customers’ unique needs in different segments. For example, • Debt Quality Monitoring Process for large-scale corporate customers with complex financial The debt collection process for large business needs and medium business clients, relationship managers customers will begin immediately after the detection of with a solid understanding of corporate financial needs any negative signals in their respective businesses, and risks are assigned to conduct analyses and to propose which may affect their debt servicing ability or lead to loan facility structure, credit products and services appropriate defaults on debt payments. The Bank’s Corporate Portfolio for customers, as well as setting prices according to their risk Monitoring Unit (CPMU) has been assigned to assess debt ratings determined by our quantitative and qualitative tools. quality to ensure close and regular portfolio monitoring. Relationship managers are also responsible for preparing For medium business and retail customers, collection scoring credit risk reports submitted for approval to underwriters has been adopted to achieve the fastest and most efficient under relevant delegated authorization based on their total debt monitoring process. Debt quality monitoring of all credit exposure. These relationship managers are required customer segments has been regularly conducted before to monitor the status of their supervised customers on being reported to the Management on a monthly basis. a regular basis. • Debt Recovery Process A similar approval process and structure has been employed The debt recovery process will start as soon as defaults for institutional clients with transactions in financial markets. on debt payments, both of corporate and individual accounts, In the underwriting and approval processes of retail lending, have occurred. Relevant guidelines, methods or tools which includes housing loans, credit card services, plus other adopted - aimed at helping customers to resume their debt personal loans, the Bank utilizes a credit scoring system servicing ability in order to minimize the impact on the Bank’s based on the Bank’s customer credit history. Emphasis has lending portfolio, while also maximizing benefits for both the been placed on verification of personal data and assessment borrowers and the Bank - must be in compliance with the Bank of income-liability consistency for each case. A customer of Thailand’s regulations. Upon the completion of debt credit history-based model has also been utilized for effective restructuring, debt quality monitoring will be regularly conducted customer risk assessment which results in concise and swift for further reporting to the Management every month. Annual Report 2011 058 Management Report

• Asset Quality Review increasing by Baht 133,853 million, or 12.43 percent, The Bank considers the review and evaluation of asset compared to Baht 1,076,981 million at the end of 2010. quality a necessary process for improvement in credit As of December 31, 2011, 56.91 percent of the Bank’s management standards to achieve the business goals of outstanding loans to customers were loans exceeding Baht the KASIKORNBANK FINANCIAL CONGLOMERATE. This is 20 million. Credit extended to the 20 largest borrowers, the responsibility of the Risk Asset Review Department, excluding Phethai Asset Management Company Limited having been assigned to review the quality of the Bank’s credit and the K Companies, accounted for Baht 57,901 million, policy and processes, from credit write-up, to underwriting, or 4.82 percent of the Bank’s total loan portfolio, which is contract preparation, and monitoring of credit quality, which will a small ratio. Classified by customers and terms, juristic then be contributed as information for credit risk management. persons accounted for Baht 706,098 million, or 58.78 percent, of outstanding loans; while sole proprietorship and individual Credit Risk Position customer credit accounted for the remaining 41.22 percent. • Outstanding loans In terms of maturity, credit with maturities of less than As of December 31, 2011, the Bank’s consolidated or equal to 1 year accounted for 48.35 percent of the Bank’s outstanding loans stood at Baht 1,210,834 million, total loans.

The Bank’s Consolidated Lending Portfolio - Profile

Less than Baht 20 million Over Baht 20 million As of Dec. 31, 2011 43.09% 56.91% Credit Amount As of Dec. 31, 2010 43.03% 56.97% Business entities Individual As of Dec. 31, 2011 58.78% 41.22% Type of Customer As of Dec. 31, 2010 59.11% 40.89% Less than or equal to 1 year Over 1 year As of Dec. 31, 2011 48.35% 51.65% Credit Maturity As of Dec. 31, 2010 50.54% 49.46%

0% 20% 40% 60% 80% 100% Annual Report 2011 Management Report 059

The Bank’s Consolidated Lending Portfolio

2.46% 2.51% 111.63%1.63% 111.42%1.42%

16.03% 15.48%

51.23% 54.26%

12.44%4% 10.69%9% 6.21%621% 55.65%65%

As of Dec. 31, 2011 As of Dec. 31, 2010 Agricultural & Mining Manufacturing & Commerce Real Estate & Construction Utilities & Services Housing Loans Others

As of Dec. 31, 2011

Consolidated Loans Percent of Consolidated Loans Classified by Type of Business Classified by Type of Business and Loan Classification and Loan Classification

Unit: Million Baht 700,000 100% 600,000 80% 500,000 400,000 60% 300,000 40% 200,000 20% 100,000 0 0 Agricultural ManufacturingMananufacturing Real Estate Utilities HouHousingsing OthOthersers AgriculturalAgricultural ManManufacturingufacturing RealRealE Estatestate UtilitiesUtilities HouHousingsingL Loansoans Oth Othersers & Mining & Commerce & Construction & Services Loans & Mining & Commerce & Construction & Services

Normal Special Mention Sub-Standard Doubtful Doubtful and Loss Annual Report 2011 060 Management Report

Of the Bank’s consolidated lending portfolio, 95.80 • Non-Performing Loans and Debt Restructuring percent was classified as ‘Normal’ loans. Classified by type Non-Performing Loans of business, Manufacturing & Commerce accounted for As of December 31, 2011, the Bank’s consolidated NPLs 51.23 percent of total consolidated lending, which was stood at Baht 31,736 million, equal to 2.45 percent of total the highest ratio. Of this figure, 92.25 percent was classified outstanding credit, including that of financial institutions. as ‘Normal’ loans. For Bank-only NPLs, the amount totaled Baht 29,868 million, accounting for 2.31 percent of total outstanding credit, including that of financial institutions, which decreased from the end of 2010. These NPL figures are shown in the table below: Non-Performing Loans (Units: Million Baht) Year Ending Dec. 31, 2011 Dec. 31, 2010 The Bank’s consolidated NPLs 31,736 33,175 Percent of total outstanding credit, including that of financial institutions 2.45 2.91 The Bank-only NPLs 29,868 31,053 Percent of total outstanding credit, including that of financial institutions 2.31 2.73

Net Non-Performing Loans For the Bank-only net NPLs, the amount totaled Baht 13,675 As of December 31, 2011, the Bank’s consolidated net million, accounting for 1.07 percent of total outstanding credit, NPLs stood at Baht 14,698 million, equal to 1.15 percent of including that of financial institutions, which decreased from the total outstanding credit, including that of financial institutions. end of 2010. The net NPL figures are shown in the table below:

Net Non-Performing Loans (Units: Million Baht) Year Ending Dec. 31, 2011 Dec. 31, 2010 The Bank’s consolidated net NPLs 14,698 16,022 Percent of total outstanding credit, including that of financial institutions 1.15 1.43 The Bank-only net NPLs 13,675 14,806 Percent of total outstanding credit, including that of financial institutions 1.07 1.32

Debt Restructuring restructuring stood at Baht 3,574 million, or 7.27 percent In 2011, the Bank’s consolidated pre-written off, of total restructured debts, which was equivalent to restructured debts totaled Baht 49,151 million, increasing by an increase of Baht 984 million compared to Baht 2,590 Baht 2,162 million when compared to 2010. Losses from debt million in 2010, or 2.09 percent of total restructured debts. Annual Report 2011 Management Report 061

Non-Performing Loans of Asset Management Company, resolved and/or restructured NPLs amounting to and Foreclosed Properties Baht 72,968 million, or 98.59 percent of the total initial Non-Performing Loans of Phethai Asset Management unpaid principal balance, with an expected recovery rate Company Limited of 48.00 percent. • Phethai Asset Management Company Limited The details of NPL resolution and/or restructuring over As of December 31, 2011, Phethai AMC had the past four quarters are shown in the table below:

Loans Resolved/Restructured at Phethai Asset Management Company Limited (Units: Million Baht) Year Ending Dec. 31, 2011 Sep. 30, 2011 Jun. 30, 2011 Mar. 31, 2011 Dec. 31, 2010 Phethai Asset Management Company Limited Cumulative loans resolved/restructured 72,968 72,931 72,807 72,790 72,750 Percent of the total initial unpaid principal balance 98.59 98.54 98.37 98.35 98.29

• Thai Asset Management Corporation Apparently, June 30, 2011, was marked as the tenth-year The Bank has transferred the sub-quality debts of completion. A gross book value of the total transferred borrowers, who all had characteristics matching those assets, calculated until the end of December 2011, equaled in the Emergency Decree on the Thai Asset Management Baht 14,882 million. These transferred assets were priced Corporation (B.E. 2544) and the Asset Transfer Agreement, at Baht 9,747 million, and the Bank has already received to Thai Asset Management Corporation (TAMC). the same amount of notes paid by FIDF. At present, In exchange for the transferred assets, TAMC issued liquidation processes has been undertaken by the Liquidation the Bank a ten-year, non-transferable, callable note, Committee, which must be completed within the twelfth year guaranteed by the Financial Institutions Development Fund since the effective date of the Emergency Decree on (FIDF). The notes’ yields include an annual coupon, reset the Thai Asset Management Corporation (B.E. 2544). quarterly, at the weighted average of deposit rates of As of December 31, 2011, according to primary five major Thai commercial banks, paid for by a one-year, information as suggested by TAMC, the Bank had extendable, non-transferable, FIDF-guaranteed note. approximately Baht 107 million in gains arising from Despite the asset transfer to TAMC, the Bank remains these sub-quality debt account management at the end of exposed to a proportion of risk in our share of TAMC’s the tenth year. However, final revision of this figure potential losses. According to the Emergency Decree shall be made by TAMC, after the remaining assets are on the Thai Asset Management Corporation (B.E. 2544) completely managed. and the Asset Transfer Agreement, at the end of the fifth Foreclosed Properties and tenth years dating from July 1, 2001, TAMC and the Bank As of December 31, 2011, the Bank’s consolidated would share gains and losses arising from the resolution foreclosed properties had a book value of Baht 15,103 million, of the Bank’s transferred assets. accounting for 0.88 percent of total assets. Annual Report 2011 062 Management Report

As of December 31, 2011, consolidated allowances for These factors significantly affected movements impairment of foreclosed properties stood at Baht 1,679 and directions of money and capital markets. million, equivalent to 11.12 percent of the cost value of The Bank has continued to develop market risk those foreclosed properties, which is believed to be sufficient management tools for enhanced efficiency of our risk to cover holding, maintenance and disposal expenses, assessments and analyses in a more complete array as well as losses on the liquidation of foreclosed properties. of perspectives, in order to cope with market volatility. Allowance for Doubtful Accounts and Allowance for In 2011, the Bank utilized the Value-at-Risk tool to measure Impairment of Assets and monitor market risk for loan syndication. Amid high As of December 31, 2011, the Bank’s consolidated volatility in the money and capital markets that may allowance for doubtful accounts and revaluation allowance for significantly affect business operations of counterparties, debt restructuring totaled Baht 40,343 million. This amount especially financial institutions in Europe, the Bank decided was equivalent to 149.92 percent of the level required by to place greater importance on monitoring the risk position of the Bank of Thailand. those financial institutions closely. The Bank also established a new decision-making and management process to cope Market Risk Management with any negative signals about the financial position of “Market risk” is risk incurred from changes in interest those counterparties to ensure the effectiveness and timely rates, exchange rates, securities prices, commodity prices, implementation of our risk management. and credit derivatives. These changes affect the Bank’s present The Bank has realized the importance of performance and future income or financial assets and liabilities values. measurement and compensation schemes of business units. KASIKORNBANK has consistently developed We have, thus, set a policy for fair-value appraisal of financial fundamental and necessary processes with an aim of proper instruments and derivative contracts for trading-book and timely management of market risks from transactions activities. The policy has been implemented as a key related to derivative products and new financial instruments. mechanism to maintain the balance of risk management, The Bank has set product management processes for both performance measurement, and compensation schemes existing and new financial products, covering the objectives for business units involved with trading book activities. and procedures in transaction executions, as well as related With the new policy, the fair-value assessment of financial market risk factors. Analyses and impact assessment of instruments and derivative products has been conducted potential risks have been conducted, while risk evaluation completely, precisely, and trustworthily. This includes gradual and controls have also been put in place. revenue recognition for illiquid products, and valuation In 2011, the financial market encountered high volatility adjustment of financial instruments and derivative products amid numerous risk factors both domestically and abroad, based on various types of risk (such as counterparty risk resulting in the Baht’s movements being dictated by and risk from large position holding). The Bank adopted the sovereign debt crisis in Europe and economic and political the fair value option in structured notes valuation. So doing problems in the U.S., leading to its credit rating downgrade. has not only allowed booking of structured notes to better In addition, Thailand’s worst-ever flooding in the second half reflect their current prices, but has also fortified the Bank’s of 2011 was responsible for a slowdown in the domestic statement of income against volatility, with improved economy, prompting the BOT to cut their policy rates. appropriateness of the Bank’s value. Annual Report 2011 Management Report 063

Developments of note for market risk management ourselves to equity risks only in order to serve the equity during 2011, as well as related information categorized underwriting business. The Bank measures, controls, by trading and banking book activities, are shown and maintains related market risks at acceptable levels, as follows: under the supervision and control of the Enterprise Risk • Market Risk in Trading Book Activities Management Division, as well as the Risk Management KASIKORNBANK is currently exposed to three main Committee. types of risk in trading book activities, including interest rate In 2011, the VaR for one-day holding period, 99-percent risk, foreign exchange risk, and equity risk. As the Bank has confidence level of trading book, was Baht 50.84 million chosen not to retain any position dealing with commodity on average, meaning that the daily potential loss of trading prices and credit derivatives, they have been managed business is less than Baht 50.84 million on 99 days out of under a back-to-back policy. In addition, the Bank exposes 100 business days.

Backtesting Result - Trading Portfolio P&L Distribution - Trading Portfolio Frequency

Loss Profit

• Market Risk in Banking Book Activities be consistent with interest rate risk, and also within a specified KASIKORNBANK is exposed to risks from interest rates risk appetite, as a preemptive measure against potential loss and capital market securities of transactions in banking from significant changes in interest rates. Amid a possible book activities, as follows: downward interest rate trend to assist economic growth Interest Rate Risk in Banking Book Activities and post-flood recovery in 2012, the Bank will re-adjust In 2011, domestic and international factors, particularly our Statement of Financial Position structure to better the European public debt crisis and economic impacts of accommodate future interest rate trends, with consideration the flooding situation at home, had a significant impact on placed on a possible change in net income and underlying domestic interest rate movements. However, the effect on economic value, under a specified risk appetite. the Bank’s interest rate risk profile was minimal, as the Bank In addition, the Bank has closely monitored interest has adjusted our Statement of Financial Position structure to rate movements and behavior of our customers, ensuring Annual Report 2011 064 Management Report

maximum accuracy of information used as input for modeling In addition, the Bank has prepared a report on interest rate of our interest rate risk management. risk gap to monitor interest rate risk and assess net The Bank has monitored interest rate risk in banking interest income sensitivity over the next 12 months, book activities regularly (on a monthly basis), including based on an assumption of a 1.00-percent change raising the frequency of risk position monitoring if in interest rate of all types of assets and liabilities at their there is any significant change in the structure of assets different re-pricing periods. The results of interest rate and liabilities. risk assessment are as follows:

The Effect of Changing Interest Rate on Net Interest Income (Units: Million Baht) Dec. 31, 2011 For the Period Ending +100 bps THB (372) Foreign Currencies 277 Total Effect of Interest Rate Change (95)

Equity Risk in the Banking Book system that is efficient, flexible and adaptable to the current The Bank currently has no policy of extending market conditions, with a proactive and proper asset our equity investments, and continues to reduce the size and liability structure, as well as liquidity risk control of these investments that are not directly related to our core consistent with the Bank’s risk appetite and appropriate businesses. In this endeavor, data analysis and assessment operating costs. of the prevailing situation have been conducted to ensure In the first half of 2011, manufacturing activities at home maximum benefit to the Bank. showed a gradual recovery, following subsiding impacts of the devastating earthquake and tsunami in Japan, Liquidity Risk Management whereas the Thai export sector and domestic spending “Liquidity risk” is defined as the risk caused by the Bank’s continued to maintain growth momentum, thus supporting inability to meet obligations when they come due - because the BOT’s policy rate hikes to keep price stability in check of an inability to convert assets into cash, or to obtain and curb inflationary pressure. Nevertheless, global economic sufficient funds to meet cash needs at appropriate costs uncertainty - caused by the European public debt crisis within a limited time period - which may then result and the U.S. - has resulted in increased volatility in in a loss to the Bank. the money and capital markets. The main objective of liquidity risk management is In the latter half of 2011, volatile money and capital to ensure that our liquidity level sufficiently facilitates markets remained prevalent globally, following the lingering business undertakings under appropriate operating costs. global economic risks, as well as cooling economic The Bank has established a liquidity risk management momentum at home that was dampened significantly Annual Report 2011 Management Report 065

by the massive flooding in Thailand during the final In addition, the Bank has continued to focus on quarter of 2011. This flooding not only largely impacted reviewing and further refining our liquidity risk management the manufacturing sector, but also impeded the country’s procedures, so as to be in alignment with world-class exports, which consequently led the BOT to cut their policy standard practices, as well as our business growth rate. As downside risks to growth seem to outweigh directions. In 2011, the Bank developed a new tool inflationary risks, it is believed that a policy rate hike is to measure and monitor foreign-currency liquidity risk, unlikely to occur, at least in the near term. aside from our existing tool to measure and monitor The aforementioned situation indirectly heightened overall liquidity risk. In terms of liquidity risk management, consequential risk in line with growing operational risk. the Bank has regularly reviewed and improved our However, the Bank adopted a Business Continuity Plan management process in line with changing economic (BCP) to alleviate the corresponding effects, or other factors conditions and our business performance. We have also that could disrupt the Bank’s key operations and systems, reviewed the structure of our funding sources to suit thus allowing the Bank to fulfill its obligations. The BCP the changing market conditions and liquidity directions contains key operational procedures, including a contingency in the commercial banking system, so as to brace for plan to cope with a liquidity crisis caused by substantial global economic conditions and rapid change in asset deposit outflows (bank run) and other factors. Under the BCP, prices. In addition, the Bank has continued to monitor, the Bank arranged facilities, necessary documents, analyze and manage foreign-currency liquidity risk, along technologies, personnel, communication channels/processes with procuring short- and medium-term funds regularly, and services needed for operations to ensure the continuity of to ensure that our liquidity is adequate for both current our liquidity management system should any unexpected and and future requirements. We have considered strategies to severe incident occurs. The Bank has strictly followed maintain a proper minimum level of foreign-currency liquid the BCP procedures during the period of heightened risk. assets. One of those strategies is to bolster the volume of The Bank has assessed and analyzed liquidity foreign-currency liquidity via deposits, which are considered risk continuously to ensure adequate liquidity for a high quality liquidity source, to brace for heightened liquidity business operations during normal and crisis situations. risk stemming from volatility in the global economy. In 2011, the Bank conducted additional stress tests for The Bank has closely monitored major factors that the events of both market-wide liquidity crisis and combination may impact liquidity and interest rate risks in the future, liquidity crisis, aside from our regular stress tests for as follows: a Bank-specific liquidity crisis. In addition, in light of • The global and Thai economies in the short- the phasing out of deposit protection during 2011 - 2012 and long-term periods. that may have a wider impact on liquidity in the commercial • Timeframe and directions of the BOT’s policy rate banking system, the Bank has made analyses and adjustments. assessments of possible impacts in various scenarios, • Direct and indirect foreign capital inflows, influenced by ranging from base to worst cases, wherein the obtained the overall confidence towards domestic consumption results have been used for mapping out necessary and investment. operational plans and strategies. Annual Report 2011 066 Management Report

• Intensified competition in savings and investment parties. This project has contributed to enhanced efficiency of products of financial institutions, which could impact risk management and internal audit procedures, while being the liquidity of the Thai commercial banking system. accountable as a key component in risk management • Potentially rising trend of credit demand, in accordance evaluation procedures - which not only leads to continuous with the Thai economic recovery, which may put additional improvements in operational risk management, but also pressure on the liquidity of the Thai commercial banking enables the Bank to cope with rapid changes more effectively, system. under the foundation of our desired corporate culture. The Bank has continued to put an emphasis on enhanced Operational Risk Management efficiency and operating cost reduction. To this end, guidelines “Operational risk” refers to the risk of direct or indirect for operational risk management have been applied with losses in bank earnings and capital funds, resulting from the Lean and Six Sigma concepts to create balance between failure or inadequate processes, personnel, operating the control of risks within the acceptable risk appetite, and IT systems, or external events. Having realized rising costs and effectiveness of operational procedures. the importance of operational risk management, the Bank These efforts help ensure that work procedures have been has always placed a great emphasis on effective operational continually developed in alignment with enhanced business risk management, and has continually improved our risk competitiveness and effective operational risk management. management framework. The objective of this framework is to Business and support units within various business divisions implement systematic operational risk management practices of the Bank have jointly implemented this project. with a single standard across the entire KASIKORNBANK In 2011, the Bank focused on enhancement of directions FINANCIAL CONGLOMERATE, with proper risk assessment and organizational structure for operational risk management. and prevention. An Operational Risk Sub-Committee was set up to supervise The Bank’s operational risk management has been the operational risk management of the KASIKORNBANK implemented, through systematic and effective risk identification, FINANCIAL CONGLOMERATE to ensure that it is assessment, management, and monitoring processes. in alignment with the established framework, and to monitor All units of the Bank are required to continuously report their closely the progress of key risk management. Additionally, operational risk exposures, designed controls, and risk the Sub-Committee manages and controls key operational prevention initiatives. Meanwhile, many modern risk risks of the Bank through the Corporate Level Initiative project, management tools - such as key risk indicators, risk event emphasizing on major operational risk factors, such as database and other IT systems - have been employed, business continuity management (BCM). This BCM includes in order to enhance the effectiveness for risk monitoring management of risk from IT system interruption, preparation and prevention, as well as managing risks in a timely for external events, e.g., natural disasters, and management manner before damage occurs to the Bank and customers. of risk from fraud that is a key risk within key products of Meanwhile, the Bank has strengthened cooperation financial institutions, such as credit cards, ATM cards, between the operational risk management team and Internal cheques and internet services. Factors to be considered Audit Department, in order to increase the efficiency consist of appropriate management structure, adequate and effectiveness of risk management and internal control resources and processes, and suitable management tools, process for relevant units through sharing important for the purpose of attaining customer satisfaction towards information and arranging workshops between those relevant the Bank’s products and services. Annual Report 2011 Management Report 067

The Bank also enhanced operational risk tracking process 3. Capital Management via the use of the Operational Risk Management Dashboard, As equity capital is of significant value to business which indicates an effectiveness of operational risk operation of financial institutions, effective capital management of each product, as concerns effectiveness of management must therefore be ascribed the highest risk identification and self-assessment, implementation of priority to achieve financial strength and sustainable the established risk prevention initiatives, and risk level credibility. monitoring via risk indicators and operational loss events. Placing great emphasis on capital management, Such a report has been aimed at presenting to senior executives the Bank’s capital management framework is consistent the overview and directions of risk management as crucial with international practices, as well as being in accordance information for efficient decision-making and maintaining with Basel II requirements which have been implemented compliance with the Bank of Thailand’s regulations, since December 31, 2008. Three applicable pillars under as well as other relevant laws and international standards. Basel II comprise minimum capital requirements (Pillar 1), supervisory review (Pillar 2) and market discipline (Pillar 3). Strategic Risk Management The Risk Management Committee supervises overall “Strategic risk” is incurred from formulation of strategies risk management to ensure that the Bank’s risk level is and business plans, as well as inappropriate implementation of maintained within the acceptable risk appetite. Additionally, such strategies and work plans, or actions inconsistent with in 2011, the Bank established the Capital Management internal factors and external environments, which will affect Sub-Committee to oversee capital adequacy, as well as earnings, capital funds, or sustainable business undertakings the Bank’s capital planning. of the KASIKORNBANK FINANCIAL CONGLOMERATE. Following the announcement made by the Basel Strategic risk management of KGroup is under Committee on Banking Supervision (BCBS) on the Basel III the supervision of the Board of Directors and Management framework, which will be implemented in Thailand in Committee. Meanwhile, the Corporate Strategy Department the near future, the Bank’s taskforce for Basel preparation is responsible for strategic plan formulation and revision, has prepared for our compliance through discussion as well as monitoring of KGroup’s performance. with the BOT. Additionally, future capital adequacy Also, the department has to present KGroup strategic under the Basel III framework has been assessed to directions to the Management Committee, consisting of ensure that there is no impact on the Bank’s capital executives of related divisions who will oversee and determine and business undertakings once the BOT revises appropriateness and feasibility of each strategic issue. the capital requirement criteria. The taskforce for Finally, the approved strategic plan and budget arranged by Basel preparation has regularly monitored and reported the Financial Planning Department will be presented to progress on Basel III implementation, both domestically the Board of Directors for approval. and internationally, to senior executives for timely planning Throughout 2011, KGroup has tracked and evaluated and management. actual performance as compared with business and budget plans by means of monthly segment monitoring meetings, Capital Management Balanced Scorecard and multi-level performance assessments. As of December 31, 2011, total capital amounted Evaluation results were analyzed vis-a-vis the business goals, to Baht 175,246 million, consisting of Tier-1 capital in order to identify relevant causes and, thus, seek possible of Baht 122,228 million, and Tier-2 capital of Baht resolutions, prior to close monitoring of corrective actions. 53,018 million.

Annual Report 2011 068 Management Report

Capital Structure As of Dec. 31, 2011

Tier-2 Capital Baht 53,018 million

Baht 175,246 million

Tier-1 Capital Baht 122,228 million

The minimum capital required for all risk types Baht 1,269,282 million. Credit risk constitutes the principal under Basel II amounted to Baht 107,889 million, risk of the Bank, or 89.81 percent of total minimum capital equivalent to the risk-weighted assets value of requirement.

Basel II Minimum Capital Requirement As of Dec. 31, 2011

Market Risk Baht 2,060 million (1.91%) Baht 107,889 Operational Risk million Baht 8,938 million (8.28%) Credit Risk Baht 96,891 million (89.81%)

The difference between the Bank’s minimum capital the minimum requirement. This level of capital beyond requirement under the Basel II Accord, totaling Baht 107,889 regulatory requirements is adequate for future business growth, million, and the current available capital of Baht 175,246 under both normal and stressed conditions, and reflects million, indicates Baht 67,357 million of capital above our capability to maximize returns to shareholders. Annual Report 2011 Management Report 069

Capital Adequacy As of Dec. 31, 2011 Units: Billion Baht 0 20 40 60 80 100 120 140 160 180 200

Minimum Capital 1081 Requirement

Total Capital Base 175 Capital above

Minimum BOT

Credit RiskMarket Risk Operational Risk

At 13.81 percent Capital Adequacy Ratio (CAR) Capital (RAROC) and Economic Profit (EP) - showing net and 9.63 percent Tier-1 Capital Ratio, exceeding the Bank of profit after adjusting for both the risk charge and the cost Thailand’s minimum requirement of 8.50 percent, the Bank’s of capital - have been adopted as key measurements. capital is considered to be within the Bank’s effective Moreover, we have developed guidelines of capital management framework. Should the net profits for performance measurements, consistent with various the second period of the year be counted as capital, wherein management aspects, including business targeting, the Bank of Thailand allows such inclusion after the approval and strategic and business planning that takes into of the Bank’s General Meeting of Shareholders, the Bank’s consideration complete risk-adjusted returns, risk-based capital adequacy ratio would be 14.73 percent, with the Tier-1 pricing and efficient resource management. In addition, capital ratio reaching 10.56 percent. the Bank has measured our business performance and analyzed value-based profits, based on the Performance Measurement using Risk-Adjusted Return “Customer-Centricity” concept, in order to strengthen our on Capital (RAROC) and Economic Profit (EP) competitive advantage in the dimensions of customer In 2011, KASIKORNBANK FINANCIAL CONGLOMERATE segments, product domains, as well as linkage between has continued to implement the Value-Based Management customer segments and product domains. Meanwhile, related (VBM) framework, which is a management practice business units have adopted the value-based analyses for aiming for the highest value creation for our shareholders, their business viability assessment of investment projects, in accordance with our business strategies and goals. allowing them to effectively adjust their business strategies In achieving this endeavor, the Risk-Adjusted Return on in alignment with the fast-changing market environment. FINANCIAL REPORTS

071 Report of the Board of Directors’ Responsibilities for Financial Reports 072 Report of the Audit Committee 074 Audit Report of Certifi ed Public Accountant 076 Financial Statements 084 Notes to Financial Statements Annual Report 2011 Financial Report 071

REPORT OF THE BOARD OF DIRECTORS’ RESPONSIBILITIES FOR FINANCIAL REPORTS

The Board of Directors of KASIKORNBANK PCL places records are accurate, complete and adequate to protect significance on roles and responsibilities in supervising the Bank’s assets. These controls also serve as preventive corporate governance activities in compliance with measures against any significant operational risk of the Bank. the Statement of Corporate Governance Principles. The Board The Board of Directors has appointed an Audit Committee is held accountable for the Consolidated and Bank-only entirely comprising independent directors responsible for Financial Statements, including financial data as shown in the the quality of Bank’s financial reporting, the internal control Annual Report. The financial statements for the accounting year systems as well as complete and appropriate disclosure of ended December 31, 2011 has been prepared in accordance connected transactions and other processes. The opinion of with the accounting standards and the generally accepted the Audit Committee with regard to these matters appears accounting principles in Thailand. The Bank has chosen in the Report of the Audit Committee in this Annual Report. proper accounting policies and strictly adhered to them on the consistency basis. The financial statements have The Board is of the view that the Bank has maintained also been prepared with careful consideration to detail, an effective internal control system at an adequate and using best estimations only where necessary. All material appropriate level of protection, which can assure the credibility information has been sufficiently disclosed in the Notes to of Consolidated and Bank-only Financial Statements as of Financial Statements, and thus reflecting the actual financial December 31, 2011. position, operating results of the Bank and subsidiaries over the past year, which is transparent and useful to all shareholders and investors. The financial statements have been audited by qualified, independent authorized auditors whose unqualified opinions are stated therein.

The Board has also adopted and maintained an appropriate (Mr. Banyong Lamsam) (Mr. Banthoon Lamsam) and effective risk management, internal control and compliance, Chairman Chief Executive Officer so that the Bank can be reasonably assured that the financial & President Annual Report 2011 072 Financial Report

REPORT OF THE AUDIT COMMITTEE

On September 29, 2011, the Board of Directors in the operating environment, globally and domestically; resolved to appoint Audit Committee Chairperson and and how the Bank manages these risk to prevent significant a new member of the Audit Committee due to the passing of impact on the operations of KASIKORNBANKGROUP. M.R. Sarisdiguna Kitiyakara, an independent director and • Reviews of the effectiveness and adequacy of the Chairman of the Audit Committee. As a result, the Audit the internal controls were conducted by considering audit Committee of KASIKORNBANK comprises of Professor results and significant audit findings presented by internal Khunying Suchada Kiranandana as Chairperson, Mr. Somchai auditors and regularly followed up on results of corrective Bulsook, Professor Dr. Yongyuth Yuthavong and Ms. Elizabeth actions taken. The Audit Committee also acknowledged Sam as members. All four are independent directors. material operational loss events, their causes and preventive During 2011, twelve meetings were held and proceedings guidelines against future recurrence. from all meetings were reported to the Board of Directors. For internal audit activities, the Audit Committee approved The Audit Committee performed activities according to its duties annual audit plan which are performed on risk based approach. and responsibilities, which can be summarized as follows: The Audit Committee places significance on independence • On a quarterly basis, reviewed the accuracy and reliability and staff sufficiency of internal auditors. Key deliverables from of the Bank’s and the Bank’s consolidated financial statements internal auditors were tracked and monitored against the audit in relation to the accounting information given and in terms plan with additional recommendations from the Audit Committee of the compliance with accounting standards, regulatory made when necessary to ensure compliance with the required requirements and internal controls in the preparation of the said standards and to enhance greater efficiency. statements. In addition, the Audit Committee held regular • Considerations of the results of compliance supervision meetings with the external auditors, without the presence of and reviews undertaken by the Compliance Department, KBank’s responsible management, to discuss any points of according to the annual compliance program approved by concern arising from their reviews or audits. No notification of the Audit Committee, to ascertain that KASIKORNBANKGROUP’s fraud or violation of law was reported to the Audit Committee operations were in compliance with relevant laws and regulations during the reviews or audits by the external auditors. such as Financial Institutions Business Law, Securities • Reviews of the risk management practice were and Exchange Law, Anti-Money Laundering Law, as well as performed with the Enterprise Risk Management Division regulations of the Bank of Thailand and Stock Exchange of executives on a quarterly basis, covering all aspects of Thailand, etc. In addition, the Audit Committee acknowledged known risks, in particular credit, market and liquidity risks. reports on regulatory changes and emphasized actions be Due attention was paid to risk factors arising from changes promptly and appropriately taken, where required. Annual Report 2011 Financial Report 073

• Overseeing loan reviews performed by the Risk auditors, along with their proposed annual audit fees for 2012, Asset Review Department to ensure efficiency and compliance to the Board of Directors for consideration and concurrence with Bank of Thailand requirements. The Audit Committee for submission to the Annual General Meeting of Shareholders considered the annual review plan prior to the Board of for approval. Directors approval. Loan quality from the review results and findings accompanied with corresponding actions to In performing duties according to roles and responsibilities ensure effectiveness of the bank credit processes were specified in the Charter, the Audit Committee performed discussed during meeting with executives of Risk Asset their duties carefully, independently and transparently for Review Department. the benefit of KASIKORNBANKGROUP. The Audit Committee • Acknowledged complaints toward staffs, operating is of confidence that the financial statements of the Bank procedures and/or practices that were deemed to involve and the consolidated financial statements of the Bank and impropriety or unfairness and reviewed the handling of its subsidiaries are accurate, reliable and in compliance with complaints to ensure fairness and transparency. the generally accepted accounting standards and financial • For the matter of potential conflict of interest transactions, reporting standards and that KASIKORNBANKGROUP has the Audit Committee placed importance on following the Bank’s operated under an environment of appropriate risk management, approval procedures that are in compliance with regulatory effective and adequate internal controls, and compliance requirements and Good Corporate Governance principles. with relevant laws and regulatory requirements. However, the Bank had no such transactions during the past year that would have been subject to the Audit Committee’s consideration. • Evaluated the performance of KPMG Phoomchai Audit Ltd. over the past year and considered their service and independence to be of value suited to the Bank’s current operations. For the appointment of the Bank external auditors for the year 2012, the Audit Committee took into account the knowledge, capabilities, experience, resources and independence of the auditors in accordance with Securities and Exchange Commission criteria, thereby recommending (Professor Khunying Suchada Kiranandana) the reappointment of KPMG Phoomchai Audit Ltd. as the external Chairperson, Audit Committee Annual Report 2011 074 Financial Report

AUDIT REPORT OF CERTIFIED PUBLIC ACCOUNTANT

To the Shareholders of KASIKORNBANK PUBLIC COMPANY PUBLIC COMPANY LIMITED and its subsidiaries, LIMITED and of KASIKORNBANK PUBLIC COMPANY LIMITED, respectively, in accordance with Financial Reporting Standards. I have audited the accompanying consolidated and the Bank-only statements of financial position As explained in Notes 2, 4 and 46 to the financial as at 31 December 2011 and 2010, and the related statements, with effect from 1 January 2011, the Bank statements of comprehensive income, changes in equity and its subsidiaries have adopted certain new and revised and cash flows for the years then ended of KASIKORNBANK financial reporting standards and relevant Bank of Thailand PUBLIC COMPANY LIMITED and its subsidiaries, notifications with regard to the presentation of the financial and of KASIKORNBANK PUBLIC COMPANY LIMITED, statements. The consolidated and the Bank-only financial respectively. The Bank’s management is responsible statements for the year ended 31 December 2010, for the correctness and completeness of information which are included in the accompanying financial statements presented in these financial statements. My responsibility for comparative purposes, have been restated accordingly. is to express an opinion on these financial statements based on my audits.

I conducted my audits in accordance with generally accepted auditing standards. Those standards require that I plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, (Ms. Somboon Supasiripinyo) as well as evaluating the overall financial statement Certified Public Accountant presentation. I believe that my audits provide a reasonable Registration No. 3731 basis for my opinion.

In my opinion, the consolidated and the Bank-only financial statements referred to above present fairly, in all material respects, the financial position as at KPMG Phoomchai Audit Ltd. 31 December 2011 and 2010 and the results of operations Bangkok and cash flows for the years then ended of KASIKORNBANK 16 February 2012 Annual Report 2011 Financial Report 075 Annual Report 2011 076 Financial Report

STATEMENTS OF FINANCIAL POSITION

KASIKORNBANK PUBLIC COMPANY LIMITED AND SUBSIDIARIES As of 31 December 2011 and 2010

Thousand Baht Note Consolidated The Bank 31 December 2011 31 December 2010 31 December 2011 31 December 2010 ASSETS Cash 53,210,590 32,457,482 53,209,128 32,456,187 Interbank and money market items - net 8 111,968,713 97,560,143 110,205,130 96,768,486 Derivative assets 9 26,726,209 29,060,408 26,730,310 29,060,408 Investments - net 10 264,143,123 251,079,721 159,907,169 168,114,988 Investments in subsidiaries and associates - net 11 151,643 137,595 14,126,630 15,582,889 Loans to customers and accrued interest receivables - net 12, 13 Loans to customers 1,217,397,103 1,082,580,962 1,201,714,013 1,067,998,583 Accrued interest receivables 2,104,977 1,416,482 1,896,336 1,224,484 Total Loans to customers and accrued interest receivables 1,219,502,080 1,083,997,444 1,203,610,349 1,069,223,067 Less Deferred revenue (6,562,721) (5,599,718) (394,553) (290,630) Less Allowance for doubtful accounts 14 (35,202,069) (32,444,855) (34,159,891) (31,199,086) Less Revaluation allowance for debt restructuring 15 (5,140,975) (4,386,765) (5,140,472) (4,386,660) Total Loans to customers and accrued interest receivables - net 1,172,596,315 1,041,566,106 1,163,915,433 1,033,346,691 Customers’ liability under acceptances 580,231 521,190 580,231 521,190 Properties foreclosed - net 16 13,423,855 14,380,983 12,220,549 12,393,288 Premises and equipment - net 18 38,660,218 39,008,556 32,927,196 33,371,270 Goodwill and other intangible assets - net 19 18,804,645 16,614,260 14,851,374 12,805,098 Deferred tax assets 20 2,464,150 3,581,654 2,310,378 3,524,427 Other assets - net 20,210,187 20,696,211 13,583,443 12,786,792 Total Assets 1,722,939,879 1,546,664,309 1,604,566,971 1,450,731,714

The accompanying notes are an integral part of these financial statements. Annual Report 2011 Financial Report 077

STATEMENTS OF FINANCIAL POSITION

KASIKORNBANK PUBLIC COMPANY LIMITED AND SUBSIDIARIES As of 31 December 2011 and 2010

Thousand Baht Note Consolidated The Bank 31 December 2011 31 December 2010 31 December 2011 31 December 2010 LIABILITIES AND EQUITY Deposits 21 1,242,229,335 1,100,036,472 1,243,860,346 1,102,229,159 Interbank and money market items 22 53,340,485 33,063,634 56,775,838 34,996,959 Liabilities payable on demand 11,598,165 21,621,928 11,598,165 21,615,512 Financial liabilities designated at fair value through profit or loss 23 2,112,573 6,156,385 2,112,573 6,156,385 Derivative liabilities 9 27,436,187 28,398,944 27,436,423 28,397,687 Debts issued and borrowings 24 70,303,494 88,932,321 70,927,494 89,542,321 Bank’s liability under acceptances 580,231 521,190 580,231 521,190 Provisions 12,789,069 11,804,616 12,452,927 11,534,844 Deferred tax liabilities 20 1,062,656 1,776,958 - - Life policy reserve 97,596,505 76,404,247 - - Other liabilities 36,925,742 32,460,145 29,522,922 24,305,603 Total Liabilities 1,555,974,442 1,401,176,840 1,455,266,919 1,319,299,660

Equity Share capital 26 Authorized share capital 3,048,614,697 common shares, Baht 10 par value 30,486,147 30,486,147 30,486,147 30,486,147 Issued and paid-up share capital 2,393,260,193 common shares, Baht 10 par value 23,932,602 23,932,602 23,932,602 23,932,602 Premium on common shares 18,103,110 18,103,110 18,103,110 18,103,110 Other reserves 10,934,372 9,198,714 10,209,040 8,414,470 Retained earnings Appropriated Legal reserve 27 3,050,000 3,050,000 3,050,000 3,050,000 Unappropriated 98,778,668 80,658,270 94,005,300 77,931,872 Total Equity attributable to equity holders of the Bank 154,798,752 134,942,696 149,300,052 131,432,054 Non-controlling interests 12,166,685 10,544,773 - - Total Equity 166,965,437 145,487,469 149,300,052 131,432,054 Total Liabilities and Equity 1,722,939,879 1,546,664,309 1,604,566,971 1,450,731,714

Pol.Gen. (Pow Sarasin) (Banthoon Lamsam) Vice Chairman Chief Executive Officer and President

The accompanying notes are an integral part of these financial statements. Annual Report 2011 078 Financial Report

STATEMENTS OF COMPREHENSIVE INCOME KASIKORNBANK PUBLIC COMPANY LIMITED AND SUBSIDIARIES For the years ended 31 December 2011 and 2010 Thousand Baht Note Consolidated The Bank 2011 2010 2011 2010 Interest income 36 83,692,656 62,271,245 78,027,918 57,440,019 Interest expenses 37 27,201,600 15,526,800 27,341,939 15,591,929 Interest income - net 56,491,056 46,744,445 50,685,979 41,848,090 Fees and service income 26,071,888 22,820,865 25,104,803 21,867,242 Fees and service expenses 5,435,065 4,594,355 5,469,613 4,543,680 Fees and service income - net 38 20,636,823 18,226,510 19,635,190 17,323,562 Gain on trading and foreign exchange transactions 39 5,213,669 4,465,366 5,213,788 4,456,160 Loss on financial liabilities designated at fair value through profit or loss 40 (53,936) (94,545) (53,936) (94,545) Gain on investments 41 805,855 610,034 319,658 243,387 Share of profit from investments using equity method 13,337 5,944 - - Dividend income 784,394 660,739 1,731,831 1,459,757 Earned premium 37,118,340 29,090,104 - - Other operating income 1,206,087 656,056 1,925,912 1,203,749 Total operating income 122,215,625 100,364,653 79,458,422 66,440,160 Underwriting expenses 31,707,255 25,220,602 - - Total operating income - net 90,508,370 75,144,051 79,458,422 66,440,160 Other operating expenses Employee’s expenses 19,544,222 16,402,361 15,044,749 12,621,103 Directors’ remuneration 100,531 114,561 76,717 96,339 Premises and equipment expenses 9,383,379 8,799,524 9,331,544 8,659,087 Taxes and duties 3,129,620 2,437,291 2,929,278 2,271,801 Others 10,861,219 10,249,139 10,460,626 10,196,609 Total other operating expenses 43,018,971 38,002,876 37,842,914 33,844,939 Impairment loss on loans and debt securities 42 7,345,533 6,700,908 7,380,372 6,491,425 Operating profit before income tax expense 40,143,866 30,440,267 34,235,136 26,103,796 Income tax expense 43 13,961,623 9,094,141 12,075,879 7,489,004 Net profit 26,182,243 21,346,126 22,159,257 18,614,792 Other comprehensive income Gain on remeasurement of available-for-sale investments 436,223 2,774,755 1,036,627 83,269 Actuarial losses on defined benefit plans (303,219) - (300,397) - Income taxes relating to components of other comprehensive income 1,390,762 (823,574) 955,661 (24,981) Total other comprehensive income 1,523,766 1,951,181 1,691,891 58,288 Total comprehensive income 27,706,009 23,297,307 23,851,148 18,673,080 Net profit attributable to: Equity holders of the Bank 24,225,567 20,046,690 22,159,257 18,614,792 Non-controlling interests 1,956,676 1,299,436 - - Total comprehensive income attributable to: Equity holders of the Bank 25,856,019 20,903,050 23,851,148 18,673,080 Non-controlling interests 1,849,990 2,394,257 - - Earnings per share of equity holders of the Bank Basic earnings per share (Baht) 10.12 8.38 9.26 7.78 Weighted average number of common shares (Thousand shares) 2,393,260 2,393,260 2,393,260 2,393,260

Pol.Gen. (Pow Sarasin) (Banthoon Lamsam) Vice Chairman Chief Executive Officer and President The accompanying notes are an integral part of these financial statements. Annual Report 2011 Financial Report 079 Interests

Non-controlling Total 28,146,064 Thousand Baht 145,487,469 ,544,773 145,487,469 Interests Non-controlling 12,166,685 166,965,437 of the Bank Total equity Total attributable to equity holders Unappropriated Appropriated Legal Reserve Consolidated Surplus on Revaluation Investments Available-for-sale Available-for-sale Equity holders of the Bank Other reserves Retained Earnings Appraisal Revaluation Surplus on Asset Premium on Share Capital Issued and Paid-up Share Capital Note Balance at 1 January 2011 23,932,602 18,103,110 7,398,703 1,800,011 3,050,000 80,658,270 134,942,696 10,544,773 Balance at 1 January 2010 Dividend paid Share capital comprehensive income for the year Total Transferred to retained earnings Others Ending balance as of 31 December 2010 23,932,602 18,103,110 - Dividend paid 28 7,515,909 comprehensive income for the year Total 23,932,602 943,651 Transferred to retained earnings 18,103,110 - - - Others 3,050,000 7,398,703 Ending balance as of 31 December 2011 66,452,011 - 1,800,011 119,997,283 - - - 3,050,000 8,148,781 - 1 80,658,270 - (117,206) 134,942,696 856,360 28 23,932,602 - - 10 18,103,110 - - - - - 8,293,493 - - 1,032,428 2,640,879 - 20,046,690 - 3,050,000 - 20,903,050 840,868 - - 98,778,668 2,394,257 154,798,752 (137,638) - - 23,297,307 - 117,206 - - (5,983,150) - - 23,982,723 - - (5,983,150) 25,856,019 - (500,012) - 1,849,990 - - (6,483,162) 27,706,009 - - - - 137,638 - 25,513 - - (5,983,150) - 501,748 25,513 (5,983,150) 501,748 (228,078) - - (1) (6,211,228) 25,512 - (16,813) (16,813) - (16,813) KASIKORNBANK PUBLIC COMPANY LIMITED AND SUBSIDIARIES PUBLIC COMPANY KASIKORNBANK the years ended 31 December 2011 and 2010 For The accompanying notes are an integral part of these financial statements. STATEMENTS OF CHANGES IN EQUITY STATEMENTS Annual Report 2011 080 Financial Report

Total Thousand Baht Unappropriated Appropriated Legal Reserve Surplus on Revaluation The Bank Investments Available-for-sale Available-for-sale (Banthoon Lamsam) Equity holders of the Bank Other reserves Retained Earnings Chief Executive Officer and President Appraisal Revaluation Surplus on Asset Premium on Share Capital Issued and Paid-up Share Capital Note (Pow Sarasin) Vice Chairman Pol.Gen. Balance at 1 January 2010 Dividend paid comprehensive income for the year Total Transferred to retained earnings Others Ending balance as of 31 December 2010 Balance at 1 January 2011 Dividend paid comprehensive income for the year Total Transferred to retained earnings Ending balance as of 31 December 2011 23,932,602 - 18,103,110 7,515,909 23,932,602 28 18,103,110 - - 957,479 7,398,703 - 3,050,000 1,015,767 65,137,740 - - 3,050,000 118,696,840 23,932,602 - - 77,931,872 18,103,110 (117,206) 23,932,602 131,432,054 28 18,103,110 - 7,398,703 58,288 - - 8,293,493 - 1,015,767 - - - 1,915,547 3,050,000 - 1,032,428 77,931,872 3,050,000 - 18,614,792 131,432,054 - - 94,005,300 899,780 18,673,080 - 149,300,052 - (137,638) 117,206 - - - - 21,918,940 (5,983,150) - - 23,851,148 (5,983,150) - - - 137,638 - 45,284 (5,983,150) 45,284 - (5,983,150) KASIKORNBANK PUBLIC COMPANY LIMITED AND SUBSIDIARIES PUBLIC COMPANY KASIKORNBANK the years ended 31 December 2011 and 2010 For STATEMENTS OF CHANGES IN EQUITY STATEMENTS The accompanying notes are an integral part of these financial statements. Annual Report 2011 Financial Report 081

STATEMENTS OF CASH FLOWS

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

Thousand Baht Note Consolidated The Bank 2011 2010 2011 2010 CASH FLOWS FROM OPERATING ACTIVITIES Operating profit before income tax expense 40,143,866 30,440,267 34,235,136 26,103,796 Add (Less) Adjustments to reconcile profit from operating before income tax expense to net cash from operating activities Depreciation and amortization 4,648,809 4,238,050 4,050,181 3,617,448 Bad debt and doubtful accounts 4,629,599 4,726,012 4,589,823 4,438,872 Loss on debt restructuring 3,571,520 2,596,529 3,570,768 2,596,048 Interest income from amortization of revaluation allowance for debt restructuring (239,423) (326,010) (239,098) (325,566) Loss (gain) on foreign exchange translation of long-term borrowings 281,561 (622,757) 281,561 (622,757) (Gain) loss on revaluation of investments (68,473) 59,729 (68,473) 62,224 (Reversal of loss) loss on impairment of investments (504,375) 6,210 (504,375) 9,451 Reversal of loss on impairment of investments in associated (1,077) - (1,077) - Gain on disposal of securities for investments (548,154) (617,940) (69,592) (253,387) (Gain) loss on disposal of investments in associated (7,056) - 1,841 - Loss on investments write off and capital decrease of subsidiary - - - 10,000 Amortization of discount on debt instruments (1,096,060) (602,735) (1,055,783) (827,706) Loss on impairment of properties foreclosed 596,639 474,546 482,433 453,779 (Reversal of loss) loss on impairment of other assets (52,770) 128,426 (52,770) 128,426 (Gain) loss on disposal of premises and equipment (7,236) (11,448) 3,694 (628) Loss on write off of premises and equipment 236,395 37,495 235,940 27,033 Reversal of loss on impairment of premises and equipment - (2,604) - (2,604) Loss on write off of intangible assets 104,028 - 104,672 - Loss on impairment of intangible assets 255,438 - 255,438 - Share of profit from investments using equity method (13,337) (5,944) - - Dividend income from associated companies 4,650 4,200 - - Amortization of discount on debentures 2,981 3,083 2,981 3,083 Increase (decrease) in other reserves 984,453 (1,161,258) 918,083 177,541 52,921,978 39,363,851 46,741,383 35,595,053

The accompanying notes are an integral part of these financial statements. Annual Report 2011 082 Financial Report

STATEMENTS OF CASH FLOWS

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

Thousand Baht Note Consolidated The Bank 2011 2010 2011 2010 Net income from interest (56,491,056) (46,744,445) (50,685,979) (41,848,089) Dividend income (784,394) (660,739) (1,731,831) (1,459,757) Proceeds from interest 83,136,173 62,767,596 76,863,242 57,553,280 Interest paid (24,527,249) (13,823,805) (24,666,186) (13,887,666) Proceeds from dividends 744,608 689,272 1,731,624 1,469,499 Income tax paid (11,039,023) (8,003,348) (8,968,231) (6,288,806) Income from operations before changes in operating assets and liabilities 43,961,037 33,588,382 39,284,022 31,133,514 (Increase) decrease in operating assets Interbank and money market items (assets) (14,201,995) (34,171,635) (13,233,668) (34,108,715) Investments held for trading 10,184,755 (7,301,588) 10,179,431 (7,293,471) Loans to customers (140,522,593) (145,137,970) (138,972,123) (142,119,972) Properties foreclosed 4,384,810 4,755,759 3,511,708 3,288,356 Other assets 3,264,864 (11,216,098) 1,396,029 (9,010,064) Increase (decrease) in operating liabilities Deposits 142,192,863 124,544,549 141,631,187 124,164,823 Interbank and money market items (liabilities) 20,276,851 (13,781,927) 21,778,879 (13,009,658) Liabilities payable on demand (10,023,763) 8,866,303 (10,017,347) 8,867,611 Financial liabilities designated at fair value through profit or loss (4,043,812) 6,156,386 (4,043,812) 6,156,386 Short-term debts issued and borrowings (18,635,546) 21,368,886 (18,621,546) 19,763,597 Other accrued expenses 2,128,719 1,466,780 1,973,326 1,249,475 Other liabilities 17,976,344 25,598,233 (2,155,084) 7,469,271 Net cash provided by (used in) operating activities 56,942,534 14,736,060 32,711,002 (3,448,847)

The accompanying notes are an integral part of these financial statements. Annual Report 2011 Financial Report 083

STATEMENTS OF CASH FLOWS

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

Thousand Baht Note Consolidated The Bank 2011 2010 2011 2010 CASH FLOWS FROM INVESTING ACTIVITIES Proceeds from disposal of available-for-sale investments 153,486,644 259,202,592 131,327,933 235,064,433 Proceeds from redemption of held to maturity debt instruments 8,352,772 17,678,612 415,533 544,964 Proceeds from disposal of general investments 209,317 213,217 209,292 212,217 Proceeds from capital decrease/disposal of investments in subsidiary company - - 1,976,145 1,467,420 Proceeds from disposal of investments in associated company 48,188 - 495 - Purchase of available-for-sale investments (157,928,458) (230,420,841) (133,085,002) (205,107,513) Purchase of held to maturity debt instruments (26,671,366) (32,028,929) (63,375) (373,876) Purchase of general investments (260,455) (191) (252,155) (191) Cash paid for capital increases of subsidiary company - - (202,000) (5,000) Purchase of investments in associated company (28,700) - - - Proceeds from disposal of premises and equipment 13,751 16,129 1,975 6,447 Purchase of premises and equipment (3,141,366) (5,405,849) (2,342,671) (4,296,724) Purchase of leasehold (195,511) (111,318) (195,178) (110,988) Purchase of intangible assets (3,585,191) (3,618,876) (3,488,080) (3,690,137) Net cash (used in) provided by investing activities (29,700,375) 5,524,546 (5,697,088) 23,711,052 CASH FLOWS FROM FINANCING ACTIVITIES Decrease in long-term debts issued and borrowings (277,823) (8,496,061) (277,823) (8,496,061) Increase in non-controlling interests’ share capital - 501,748 - - Dividend payments to shareholder 28 (5,983,150) (5,983,150) (5,983,150) (5,983,150) Dividend paid to non-controlling interests (228,078) (500,012) - - Net cash used in financing activities (6,489,051) (14,477,475) (6,260,973) (14,479,211) Net increase in cash 20,753,108 5,783,131 20,752,941 5,782,994 Cash at the beginning of the period 7 32,457,482 26,674,351 32,456,187 26,673,193 Cash at the end of the period 7 53,210,590 32,457,482 53,209,128 32,456,187

Pol.Gen. (Pow Sarasin) (Banthoon Lamsam) Vice Chairman Chief Executive Officer and President

The accompanying notes are an integral part of these financial statements. Annual Report 2011 084 Financial Report

NOTES TO THE FINANCIAL STATEMENTS

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

Note Contents Page 1 General information 85 2 Basis of preparation of the financial statements 90 3 Impact of severe flooding in Thailand 92 4 New and revised Thai Financial Reporting Standards 92 5 Significant accounting policies 93 6 Capital requirements 112 7 Supplementary information of cash flows 113 8 Interbank and money market items - net (assets) 114 9 Derivatives 116 10 Investments - net 118 11 Investments in subsidiaries and associated companies - net 124 12 Loans to customers and accrued interest receivables - net 130 13 Troubled debt restructuring 141 14 Allowance for doubtful accounts 146 15 Revaluation allowance for debt restructuring 147 16 Properties foreclosed - net 148 17 Classified assets 150 18 Premises and equipment - net 152 19 Goodwill and other intangible assets - net 156 20 Deferred tax assets and deferred tax liabilities 159 21 Deposits 163 22 Interbank and money market items (liabilities) 164 23 Financial liabilities designated at fair value through profit or loss 166 24 Debts issued and borrowings 166 25 Employee retirement benefits 171 26 Share capital and earnings per share 172 27 Reserves 172 28 Dividend payments 172 29 Assets pledged as collateral 173 30 Contingent liabilities and commitments 173 31 Related party transactions and balances 175 32 Benefits of directors and executives 185 33 Capital commitments and long-term agreements 186 34 Thai Financial Reporting Standards (TFRS) not yet adopted 187 35 The financial positions and results of operations differentiated by domestic and foreign business 187 36 Interest income 192 37 Interest expenses 192 38 Fees and service income - net 193 39 Gain on trading and foreign exchange transactions 193 40 Loss on financial liabilities designated at fair value through profit or loss 194 41 Gain on investments 194 42 Impairment loss on loans and debt securities 195 43 Income tax expense 195 44 Financial risk management 198 45 Fair value of financial instruments 215 46 Reclassification of accounts 217 Annual Report 2011 Financial Report 085

NOTES TO THE FINANCIAL STATEMENTS

KASIKORNBANK PUBLIC COMPANY LIMITED AND SUBSIDIARIES For the years ended 31 December 2011 and 2010 These notes form an integral part of the financial statements.

The financial statements issued for Thai statutory and regulary reporting purposes are prepared in the Thai language. These English language financial statements have been prepared from the Thai language statutory financial statements, and were approved and authorized for issue by the Audit Committee on 16 February 2012. 1 GENERAL INFORMATION KASIKORNBANK PUBLIC COMPANY LIMITED, (“the Bank”), is a registered public company located in the Kingdom of Thailand and listed on the Stock Exchange of Thailand on 9 February 1976. The registered office of the Bank is at 1 Soi Rat Burana 27/1, Rat Burana Road, Rat Burana Sub-District, Rat Burana District, Bangkok. The principal activity of the Bank is commercial banking and the Bank conducts its businesses through a network of branches covering all parts of Thailand and certain majors cities overseas. The consolidated financial statements of the Bank consist of the Bank and its subsidiaries. Details of the Bank’s subsidiaries are as follows: % Shareholding of the Bank Direct and Indirect 31 December 2011 31 December 2010 KASIKORN ASSET MANAGEMENT CO., LTD. (“KAsset”) 100.00 100.00 KASIKORN RESEARCH CENTER CO., LTD. (“KResearch”) 100.00 100.00 KASIKORN SECURITIES PCL (“KSecurities”) 99.99 99.99 KASIKORN LEASING CO., LTD. (“KLeasing”) 100.00 100.00 KASIKORN FACTORY & EQUIPMENT CO., LTD. (“KF&E”) 100.00 100.00 Phethai Asset Management Co., Ltd. 100.00 100.00 KHAO KLA Venture Capital Management Co., Ltd. 100.00 100.00 K-SME Venture Capital Co., Ltd. 100.00 100.00 Progress Software Co., Ltd. 100.00 100.00 Progress Plus Co., Ltd. 100.00 100.00 Progress Appraisal Co., Ltd. 100.00 100.00 Progress Gunpai Co., Ltd. 100.00 100.00 Annual Report 2011 086 Financial Report

% Shareholding of the Bank Direct and Indirect 31 December 2011 31 December 2010 Progress Management Co., Ltd. 100.00 100.00 Progress Facilities Management Co., Ltd. 100.00 100.00 Progress Service Co., Ltd. 100.00 100.00 Progress Land and Buildings Co., Ltd. 100.00 100.00 Progress Storage Co., Ltd. 100.00 100.00 Progress HR Co., Ltd. 100.00 100.00 Progress Service Support Co., Ltd. 100.00 100.00 Progress Collection Co., Ltd. 100.00 100.00 Progress Training Co., Ltd. 100.00 100.00 Progress Multi Insurance Broker Co., Ltd. 100.00 100.00 Thanyathanathavee Co., Ltd. 100.00 100.00 Thanyathamrongkij Co., Ltd. 100.00 100.00 Thanyanithiwattana Co., Ltd. 100.00 100.00 Ruang Khao Phuean Thai Joint Investment Agreement 100.00 100.00 Muangthai Group Holding Co., Ltd. (“MTGH”) 51.00 51.00 Muang Thai Life Assurance Co., Ltd. (“MTL”) 38.25 38.25 Muangthai Broker Co., Ltd. (“MTB”) 49.98 49.98

KASIKORN ASSET MANAGEMENT COMPANY LIMITED is a company which is registered in the Kingdom of Thailand and is located at 400/22 Kasikornbank Building, Floor 6, Phaholyothin Road, Samsennai, Phayathai, Bangkok. The company's main business is assets and funds management. KASIKORN RESEARCH CENTER COMPANY LIMITED is a company which is registered in the Kingdom of Thailand and is located at 400/22 Kasikornbank Building, Floor 2 and 7, Phaholyothin Road, Samsennai, Phayathai, Bangkok. The company’s main business is to support the Bank with research work and public relations. KASIKORN SECURITIES PUBLIC COMPANY LIMITED is a company which is registered in the Kingdom of Thailand and is located at 400/22 Kasikornbank Building, Floor 19, Phaholyothin Road, Samsennai, Phayathai, Bangkok. The company’s main businesses are securities and investment banking. Annual Report 2011 Financial Report 087

KASIKORN LEASING COMPANY LIMITED is a company which is registered in the Kingdom of Thailand and is located at 400/22 Kasikornbank Building, Floor 17, Phaholyothin Road, Samsennai, Phayathai, Bangkok. The company’s main businesses are leasing and hire purchase. KASIKORN FACTORY AND EQUIPMENT COMPANY LIMITED (changed its name from KASIKORN FACTORING COMPANY LIMITED on 25 December 2009) is a company which is registered in the Kingdom of Thailand and is located at 400/22 Kasikornbank Building, Floor 3, Phaholyothin Road, Samsennai, Phayathai, Bangkok. The company was established to furnish commercial financial services to businesses, including factoring, finance leases, operating leases and hire purchase. Phethai Asset Management Company Limited is a company registered in the Kingdom of Thailand and was approved by the Bank of Thailand (BoT) on 13 October 1999 to register as an asset management company under the Ministerial Regulation (B.E. 2541) issued with regard to the provisions of the Asset Management Company Act (B.E. 2541). The company is located at 400/22 Kasikornbank Building, Floor 4, Phaholyothin Road, Samsennai, Phayathai, Bangkok and was established with the objective of managing substandard assets transferred from the Bank. KHAO KLA Venture Capital Management Company Limited, 100% held by KASIKORN ASSET MANAGEMENT COMPANY LIMITED, is a company which is registered in the Kingdom of Thailand and is located at 400/22 Kasikornbank Building, Floor 14, Phaholyothin Road, Samsennai, Phayathai, Bangkok. The company’s main business is securities investment management. K-SME Venture Capital Company Limited is a company which is registered in the Kingdom of Thailand and is located at 400/22 Kasikornbank Building, Floor 14, Phaholyothin Road, Samsennai, Phayathai, Bangkok. The company’s main business is venture capital. Progress Software Company Limited is a company which is registered in the Kingdom of Thailand and is located at 306 Suapa Road, Pomprab, Pomprab-satrupai, Bangkok. The company’s main business is to render the service of designing computer program, and training in the use of hardware and software. Progress Plus Company Limited is a company which is registered in the Kingdom of Thailand and is located at 306 Suapa Road, Pomprab, Pomprab-satrupai, Bangkok. The company’s main businesses are to deal in the business of agency/brokerage sales of inventories and/or service, contractor, particularly office stationery, printing matters and other goods. Annual Report 2011 088 Financial Report

Progress Appraisal Company Limited is a company which is registered in the Kingdom of Thailand and is located at 252, Phaholyothin Road, Samsennai, Phayathai, Bangkok. The company’s main business is to appraise assets. Progress Gunpai Company Limited is a company which is registered in the Kingdom of Thailand and is located at 47/7, Kasikornbank Building, Floor 3, Mu 3, Tambon Ban Mai, Pak Kret District, Nontaburi. The company’s main businesses are to provide transportation service of cash and valuable assets to the Bank, including cash count service, packing and change of cash to Automatic Teller Machines. Progress Management Company Limited is a company which is registered in the Kingdom of Thailand and is located at 252/9 Muang Thai-Phatra Tower 1, Floor 5, Ratchadapisek Road, Huaykwang, Huaykwang, Bangkok. The company’s main business is engaged as the custodian and management of assets, received from debt settlement of the Bank including related parties’ assets which have been transferred in, in order to keep these assets in good condition for sale or rent. Progress Facilities Management Company Limited is a company which is registered in the Kingdom of Thailand and is located at 400/22 Kasikornbank Building, Floor 9, Phaholyothin Road, Samsennai, Phayathai, Bangkok. The company’s main business is to provide building management services to the Bank and related parties. Progress Service Company Limited is a company which is registered in the Kingdom of Thailand and is located at 400/22 Kasikornbank Building, Floor 9, Phaholyothin Road, Samsennai, Phayathai, Bangkok. The company’s main business is to provide drivers, security guards, cleaners and other related services for the Bank and related parties. Progress Land and Buildings Company Limited is a company which is registered in the Kingdom of Thailand and is located at 252/9 Muang Thai-Phatra Tower 1, Floor 5, Ratchadapisek Road, Huaykwang, Huaykwang, Bangkok. The company was established to receive, manage and sell properties that have been foreclosed as well as the premises of Phatra Thanakit Public Company Limited. Progress Storage Company Limited is a company which is registered in the Kingdom of Thailand and is located at 400/22 Kasikornbank Building, Floor 9, Phaholyothin Road, Samsennai, Phayathai, Bangkok. The company’s main business is to provide inventory management services, used as collateral for bank loans. Progress HR Company Limited is a company which is registered in the Kingdom of Thailand and is located at 1019/15 Kasikornbank Building, Sanampao Branch, Floor 2-3, Phaholyothin Road, Samsennai, Phayathai, Bangkok. The company main business is to provide outsourced employee services to the Bank and related parties. Annual Report 2011 Financial Report 089

Progress Service Support Company Limited is a company which is registered in the Kingdom of Thailand and is located at 47/7, Kasikornbank Building, Floor 9, Mu 3, Tambon Ban Mai, Pak Kret District, Nontaburi. The company’s main business is to provide information relating the Bank’s products and services through customer relationship channels, including selling and marketing via telephone banking. Progress Collection Company Limited is a company which is registered in the Kingdom of Thailand and is located at 1 Kasikornbank Building, Rat Burana Main Branch, Floor 2-3, Soi Rat Burana 27/1, Rat Burana Road, Rat Burana Sub-District, Rat Burana District, Bangkok. The company’s main businesses are collection and debt restructuring for consumer and corporate loans of the Bank and its subsidiaries. Progress Training Company Limited is a company which is registered in the Kingdom of Thailand on 9 April 2009, and is located at 1 Kasikornbank Building, Floor 12, Soi Rat Burana 27/1, Rat Burana Road, Rat Burana Sub- District, Rat Burana District, Bangkok. The company’s main business is offering of training services to develop the skills of its employees of the Bank and its subsidiaries. Progress Multi Insurance Broker Company Limited is a company which is registered in the Kingdom of Thailand on 16 September 2010, and is located at 400/22 Kasikornbank Building, Floor 17, Phaholyothin Road, Samsennai, Phayathai, Bangkok. The company’s main business is commission from casualty insurance. Thanyathanathavee Company Limited is a company which was registered in the Kingdom of Thailand on 11 November 2009, and is located at 1 Parking Building Floor 5, Soi Rat Burana 27/1, Rat Burana Road, Rat Burana Sub-District, Rat Burana District, Bangkok. The company’s main business is investment in other companies.

Thanyathamrongkij Company Limited is a company which was registered in the Kingdom of Thailand on 11 November 2009, and is located 1 Parking Building Floor 5, Soi Rat Burana 27/1, Rat Burana Road, Rat Burana Sub-District, Rat Burana District, Bangkok. The company's main business is investment in other companies. Thanyanithiwattana Company Limited is a company which was registered in the Kingdom of Thailand on 12 November 2009, and is located at 1 Parking Building Floor 5, Soi Rat Burana 27/1, Rat Burana Road, Rat Burana Sub-District, Rat Burana District, Bangkok. The company's main business is investment in other companies. Ruang Khao Phuean Thai Joint Investment Agreement was agreed between Thanyathanathavee Company Limited and Thanyathamrongkij Company Limited on 12 November 2009, pursuant to the regulations under the Life Insurance Act B.E. 2535 as amended. The objective of this agreement is investment in other companies. Annual Report 2011 090 Financial Report

Muangthai Group Holding Company Limited (changed its name from Muangthai Fortis Holding Company Limited on 31 July 2009) is a company which was registered in the Kingdom of Thailand on 11 August 1999 and is located at Muang Thai-Phatra Complex, Tower A, Floor 5, 252/9, Ratchadapisek Road, Huaykwang, Huaykwang, Bangkok. The company’s main business is investment in other companies. Muang Thai Life Assurance Company Limited is a company which was registered in the Kingdom of Thailand on 1 February 1951 and is located at 250 Ratchadapisek Road, Huaykwang, Huaykwang, Bangkok. The company’s main business is providing life insurance. Muangthai Broker Company Limited is a company which was registered in the Kingdom of Thailand on 12 March 2008, and is located at Muang Thai-Phatra Complex, Tower A, Floor 5, 252/9, Ratchadapisek Road, Huaykwang, Huaykwang, Bangkok. The company’s main business is commission from life insurance.

2 BASIS OF PREPARATION OF THE FINANCIAL STATEMENTS a) Statement of compliance The financial statements are prepared in accordance with Thai Financial Reporting Standards (“TFRS”); guidelines promulgated by the Federation of Accounting Professions (“FAP”), applicable rules and regulations of the Thai Securities and Exchange Commission (“SEC”) and prescribed by the Bank of Thailand (“BoT”) notification number SOR NOR SOR 11/2553, directive dated 3 December 2010, regarding the “Preparation and announcement of the financial statements of commercial banks and holding companies which are parent company of group of companies offering financial services”. See Note 46 for reclassification of accounts for financial statements for the year ended 31 December 2010, for comparative purpose.

b) Basis of measurement The financial statements have been prepared on the historical cost basis except the following material items in the statements of financial position: - derivative financial instruments are measured at fair value; - financial instruments at fair value through profit or loss are measured at fair value; - available-for-sale financial assets are measured at fair value; - premises and equipment are measured at revalued amounts; - investment properties are measured at fair value. Annual Report 2011 Financial Report 091

c) Presentation currencies The financial statements are prepared and presented in Thai-Baht. All financial information presented in thousand Baht has been rounded in the notes to the financial statements to the nearest million unless otherwise stated. d) Use of estimates and judgements The preparation of financial statements in conformity with TFRS requires management to make judgements, estimates and assumptions that affect the application of policies and reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which estimates are revised and in any future period affected.

Information about significant of estimation uncertainty and critical judgements in applying accounting policies that have the most significant effect on the amount recognised in the financial statements are described in note 4 significant accounting policies and in the following notes:

Note 3 Impact of severe flooding in Thailand 9 Derivatives 10 Investments - net 13 Troubled debt restructuring 14 Allowance for doubtful accounts 15 Revaluation allowance for debt restructuring 16 Properties foreclosed - net 18 Premises and equipment - net 19 Goodwill and other intangible assets - net 20 Deferred tax assets and deferred tax liabilities 23 Financial liabilities designated at fair value 25 Employee retirement benefits 30 Contingent liabilities and commitments 43 Income tax expense 44 Financial risk management 45 Fair value of financial instruments Annual Report 2011 092 Financial Report

3 IMPACT OF SEVERE FLOODING IN THAILAND

Due to the recent flooding the Bank of Thailand has implemented measures requesting banks to provide support to their impacted customers, where the customer’s account status is Pass or Special Mention. Such measures are set out in Notification For Nor Sor. (23) Wor. 1564/2554 issued on 19 October 2011. Customers have been granted relief under the measures referred to above has loans outstanding balances as of 31 December 2011 amounting to Baht 86,542 million. The Bank has performed an assessment and already provided allowance for doubtful accounts to serve for any impact incurred which is not material to the financial statements.

4 NEW AND REVISED THAI FINANCIAL REPORTING STANDARDS During 2010 and 2011, the FAP issued the following new and revised Thai Financial Reporting Standards (TFRS) relevant to the Bank and its subsidiaries’ operations and effective for accounting periods beginning on or after 1 January 2011. The Bank and its subsidiaries have early adopted some TFRS for the preparation of financial statements in 2010 and have applied the following TFRS from 1 January 2011 : TFRS Topic TAS 1 (Revised 2009) Presentation of Financial Statements TAS 24 (Revised 2009) Related Party Disclosures TAS 34 (Revised 2009) Interim Financial Reporting FAP’s announcement 17/2554 Transitional Procedures for other Long-term Employee Benefits FAP’s announcement 18/2554 Accounting Guidance on Revaluation of Assets From 1 January 2011, the Bank and its subsidiaries have adopted TAS 1 (Revised 2009) Presentation of Financial Statements. Under the revised standard, a set of financial statements comprises: x Statement of financial position; x Statement of comprehensive income; x Statement of changes in equity; x Statement of cash flows; and x Notes to the financial statements. Annual Report 2011 Financial Report 093

As a result, the Bank and its subsidiaries present all owner changes in equity in the statement of changes in equity and all non-owner changes in equity in the statement of comprehensive income. Previously, all such changes were included in the statement of changes in equity. Comparative information has been re-presented so that it also is in conformity with the revised standard, see Note 46. Since the change in accounting policy only impacts presentation aspects, there is no impact on reported profit or earnings per share. In addition to the above new and revised TFRS, during 2010 the FAP has issued a number of other TFRS which are expected to be effective for financial period beginning on or after 1 January 2013 and have not been adopted in the preparation of these financial statements. These new and revised TFRS are disclosed in Note 34.

5 SIGNIFICANT ACCOUNTING POLICIES 5.1 Basis of consolidation The consolidated financial statements relate to the Bank and its subsidiaries and the Bank’s interests in associates. Business combinations The Bank and subsidiaries apply the acquisition method for all business combinations other than those with entities under common control. Business combinations are accounted for under the purchase method. The cost of an acquisition is measured at the fair value of the assets transferred, equity securities issued and identifiable liabilities assumed at the date of exchange. Control is the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities. In assessing control, the Bank and subsidiaries takes into consideration potential voting rights that currently are exercisable.

Annual Report 2011 094 Financial Report

Goodwill in a business combination Goodwill in a business combination represents the excess of the cost of acquisition over the fair value of the Bank’s share of the identifiable net assets acquired. Negative goodwill in a business combination represents the excess of the fair value of the Bank’s share of the identifiable net assets acquired over the cost of acquisition. - goodwill and negative goodwill, carried in the financial statements that arose from a business combination for which the agreement date was before 1 January 2008, are stated at cost less accumulated amortisation as of 31 December 2007 and accumulated allowance for impairment. - goodwill arising from a business combination for which the agreement date begins on or after 1 January 2008 to 31 December 2009, are stated at cost less accumulated allowance for impairment. Negative goodwill is recognised as income in the statement of comprehensive income in the year of the business combination. Subsidiaries Subsidiaries are entities controlled by the Bank and its subsidiaries. Control exists when the Bank and subsidiaries has the power, directly or indirectly, to govern the financial and operating policies of an entity so as to obtain benefits from its activities. The financial statements of subsidiaries are included in the consolidated financial statements from the date that control commences until the date that control ceases. The accounting policies of subsidiaries have been changed where necessary to align them with the policies adopted by the Bank. Losses applicable to non-controlling interests in a subsidiary are allocated to non-controlling interests even if doing so causes the non-controlling interests to have a deficit balance. Associates Associates are those entities in which the Bank and subsidiaries has significant influence, but not control, over the financial and operating policies. Significant influence is presumed to exist when the Bank and subsidiaries holds between 20% and 50% of the voting power of another entity. Investments in associates are accounted for in the consolidated financial statements using the equity method and are recognised initially at cost. The cost of the investment includes transaction costs. Annual Report 2011 Financial Report 095

The consolidated financial statements include the Bank and subsidiaries’ share of profit or loss and other comprehensive income from the date that significant influence commences until the date that significant influence ceases. When the Bank and subsidiaries’ share of losses exceeds its interest in an associate, the Bank and subsidiaries’ carrying amount is reduced to nil and recognition of further losses is discontinued except to the extent that the Bank and subsidiaries has incurred legal or constructive obligations or made payments on behalf of the associate. Transactions eliminated on consolidation Intra-group balances and transactions, and any unrealised income or expenses arising from intra-group transactions, are eliminated in preparing the consolidated financial statements. Unrealised gains arising from transactions with associates are eliminated against the investment to the extent of the Bank and subsidiaries’ interest in the investee. Unrealised losses are eliminated in the same way as unrealised gains, but only to the extent that there is no evidence of impairment.

The consolidated and the Bank only financial statements include the accounts of all branches; domestic and outside Thailand. Interbranch transactions have been eliminated.

5.2 Cash Cash represent cash in hand and cash items in the process of collection. The Bank recognised such items on this financial statements by Settlement Date method. 5.3 Investments Investments in debt and equity securities Debt securities and marketable equity securities held for trading are classified as trading investments and are stated at fair value, with any resultant gain or loss being recognised in the statements of comprehensive income. Debt securities for which the Bank and its subsidiaries have the positive intent and ability to hold to maturity are classified as held-to-maturity investments. Held-to-maturity investments are stated at amortised cost, less any impairment losses. The difference between the acquisition cost and redemption value of such debt securities is amortised using the effective interest rate method over the period to maturity. Annual Report 2011 096 Financial Report

Debt securities and marketable equity securities, other than those securities held for trading or intended to be held to maturity, are classified as available-for-sale investments. Available-for-sale investments are, subsequent to initial recognition, stated at fair value, and changes on available-for-sale monetary items, are recognised directly in equity and other comprehensive income. Where these investments are interest- bearing, interest calculated using the effective interest method is recognised in profit or loss. Equity securities which are not marketable classified as general investment are stated at cost less any impairment losses. Investments in marketable equity securities classified as trading investments and available-for-sale investments are stated at fair value based on the last Stock Exchange of Thailand (SET) bid prices as of the reporting date. Investments in marketable unit trusts classified as trading investments and available-for-sale investments are stated at fair value based on the net asset value as of the reporting date.

Investments in government securities and state enterprises securities guaranteed by the government, classified as trading investments and available-for-sale investments, are stated at fair value based on the Thai Bond Market Association Government Bond Yield Curve as of the reporting date. State enterprises securities not guaranteed by the government and private debt instruments are stated at fair value based on bid prices from the Thai Bond Market Association as of reporting date. If not available, the Government

Bond Yield for the same period, adjusted by an appropriate risk premium, is used. Investments in receivables Investments in receivables are stated at acquisition cost after deducting the allowance for impairment. When debt restructuring is required, the balance is recorded as a loan at fair value, in accordance with the transfer of financial asset accounting procedure. The difference between the book value and the fair value is recognised as a gain or loss on transfer of financial assets in the statements of comprehensive income. Investments recognition The Bank recognised and eliminated such items on this financial statements by Settlement Date method. Annual Report 2011 Financial Report 097

Impairment An impairment review of investments is carried out when there is a factor indicating that an investment might be impaired. Losses on impairment for all classifications of investments are charged to the statements of comprehensive income. Revenue recognition Interest income is recognised on an accrual basis. Dividend income from investment is recognised on an accrual basis at the date which the Bank earns the rights to receive the dividend. Gains or losses on sales of securities are recognised in profit or loss upon disposal. Interest income from investments in receivables is recognised by using the effective yield method. Disposal of investments On disposal of an investment, the difference between net disposal proceeds and the carrying amount together with the associated gain or loss that was reported in equity is recognised in the statements of comprehensive income. On disposal of part of its holding of a particular investment, the deemed cost of the part sold is determined using the weighted average method applied to the carrying value of the total holding of the investment.

5.4 Investments in subsidiaries and associates Investments in subsidiaries and associates in the separate financial statements of the Bank are accounted for using the cost method less allowance for impairment. Investments in associates in the consolidated financial statements are accounted for using the equity method.

5.5 Loans Except in the case of loans effected through overdraft agreements, loans represent only principal amounts. Unearned discounts received in advance are presented as a reduction in loans. The Bank recognised and eliminated such items on this financial statements by Settlement Date method. Annual Report 2011 098 Financial Report

5.6 Allowance for doubtful accounts The Bank and certain subsidiaries which are credit institutions or asset management company make allowances for doubtful accounts that are determined through methods based on the Bank of Thailand’s regulations and the Bank’s estimated loan loss. The allowance for non-performing loans has been specifically determined by the nature of loans and the relevant factors such as payment ability, collateral, historical loss and estimated loss, etc. The allowance for performing loans has been assessed based upon general relevant factors such as historical loss, credit risk, economic conditions and management experience, etc. For corporate loans, the allowance is determined on a case by case basis while the allowance for retail loans is determined on a portfolio basis for portfolios with similar risk characteristics. Based on BoT’s regulations, the Bank and certain subsidiaries which are credit institutions or asset management company have classified their loan portfolios into six categories, primarily based on the non- accrual period. For loans classified as pass and special-mention, the calculation of allowances for doubtful accounts is based on the regulatory minimum percentage requirement, taking into consideration the collateral value, where the collateral type and date of the latest appraisal are qualifying factors. For loans classified as sub-standard, doubtful and doubtful of loss, the allowances on these accounts will be set at 100 percent for the difference between the outstanding book value of the debt and the present value of future cashflows expected to be received or the expected proceeds from the disposal of collateral in accordance with the BoT’s regulations. Allowance for doubtful accounts of the factoring subsidiary which has credit risk guarantee with other insurance companies is established in accordance with the Bank of Thailand’s notification. Allowance for doubtful accounts established during the year are recognised as bad debt and doubtful accounts expense in the statements of comprehensive income. Bad debt recovery is recognised as income and is presented net of bad debt and doubtful accounts expense in the statements of comprehensive income. The life insurance subsidiary has allowance for doubtful accounts based on the estimated loss that may incurred in collection of the premium due, determined by collection experience, review of premium due aging and value of collateral held against each receivable. Annual Report 2011 Financial Report 099

5.7 Troubled debt restructuring

The Bank and the asset management subsidiary record foreclosed assets acquired from troubled debt restructuring at fair value up to the legal claim for the debt, including interest receivable. Where restructuring a loan involves modification of its terms, the present value of the expected future cash collections is calculated by using discount rates equivalent to the market rates of interest at the time of restructuring. The difference between the present value of the future cash flows expected to be received and the outstanding balances of investment in loans is recorded in the revaluation allowance for debt restructuring. This revaluation allowance for debt restructuring is amortised to the statement of comprehensive income according to the amounts received over the remaining period of the debt-restructuring contracts except for restructured loans with a high probability of default on their contractual obligations and agreement. In this latter case, the Bank will stop recognising to the statements of comprehensive income. The recognition in the statements of comprehensive income occurs when such risk is eliminated.

5.8 Properties foreclosed Properties foreclosed are recorded at the lower of market value or the amount of the legal claim on the related debt, including interest receivable. The market value is estimated by using the latest appraisal value after deduction of estimated disposal expenses and holding cost. Losses on impairment are charged to the statements of comprehensive income. Gains or losses on disposal of properties foreclosed are recorded as other operating income or other expenses upon disposal.

5.9 Premises and equipment and depreciation Recognition and measurement Owned assets Land and buildings are stated at their revalued amounts. The revalued amount is the fair value determined on the basis of the property’s existing use at the date of revaluation less any subsequent accumulated depreciation and impairment losses. Equipment are stated at cost less accumulated depreciation and impairment losses. Annual Report 2011 100 Financial Report

Cost includes expenditure that is directly attributable to the acquisition of the asset, any other costs directly attributable to bringing the assets to a working condition for their intended use, the costs of dismantling and removing the items and restoring the site on which they are located, and capitalised borrowing costs. Purchased software that is integral to the functionality of the related equipment is capitalised as part of that equipment. When parts of an item of premises and equipment have different useful lives, they are accounted for as separate items of premises and equipment. Gains and losses on disposal of an item of premises and equipment are determined by comparing the proceeds from disposal with the carrying amount of premises and equipment, and are recognised net within other income and other expense in the statements of comprehensive income. When revalued assets are sold, the amounts included in the revaluation reserve are transferred to retained earnings. Revalued assets Revaluation of land and buildings is performed by independent professional valuers according to the Bank of Thailand’s criteria with sufficient regularity to ensure that the carrying amount of these assets does not differ materially from that which would be determined using fair values at the reporting date. Any increase in value, on revaluation, is recognised in other comprehensive income and presented in the appraisal surplus on asset revaluation in equity unless it offsets a previous decrease in value recognised loss in the statements of comprehensive income in respect of the same asset. A decrease in value is recognised in the statements of comprehensive income to the extent it exceeds an increase previously recognised in other comprehensive income in respect of the same asset.

The appraisal surplus on asset revaluation is utilised by reference to the difference between depreciation based on the revalued carrying amount of the asset and depreciation based on the asset’s original cost and transferred directly to retained earnings. Upon disposal of a revalued asset, any remaining related appraisal surplus on asset revaluation is transferred directly to retained earnings and is not taken into account in calculating the gain or loss on disposal. Annual Report 2011 Financial Report 101

Leased assets Leases in terms of which the Bank and its subsidiaries substantially assumes all the risk and rewards of ownership are classified as finance leases. Equipment acquired by way of finance leases is capitalised at the lower of its fair value and the present value of the minimum lease payments at the inception of the lease, less accumulated depreciation and impairment losses. Lease payments are apportioned between the finance charges and reduction of the lease liability so as to achieve a constant rate of interest on the remaining balance of the liability. Finance charges are charged directly to the statements of comprehensive income. Subsequent expenditure Subsequent expenditure relating to an item of premises and equipment is added to the carrying amount of the asset when it is probable that the future economic benefits embodied within the part will flow to the Bank and its subsidiaries. The other subsequent expenditure is recognised in expenses as incurred. Depreciation Depreciation is calculated based on the depreciable amount, whish is the cost of and asset, or other amount substituted for cost, less its residual value.

Depreciation is charged to the statements of comprehensive income on a straight-line basis over the estimated useful lives of each item of premises and equipment. Depreciation on buildings acquired before July 1996 is computed using the declining balance method. Depreciation on buildings acquired after July 1996 and on equipment is computed using the straight-line method. The estimated useful lives are as follows: Buildings 20-50 years Buildings on rented land over rental contract Equipment 5-15 years Depreciation methods, useful lives and residual values are reviewed at each financial year-end and adjusted if appropriate. No depreciation is provided on freehold land or assets under construction Annual Report 2011 102 Financial Report

5.10 Goodwill and intangible assets Goodwill Goodwill that arises upon the acquisition of subsidiaries is included in goodwill and intangible assets. The measurement of goodwill at initial recognition is described in note 5.1. Subsequent to initial recognition, goodwill is measured at cost less accumulated impairment losses. Other intangible assets Other intangible assets and have finite useful lives are measured at cost less accumulated amortisation and accumulated impairment losses. Subsequent expenditure Subsequent expenditure is capitalised only when it increases the future economic benefits embodied in the specific asset to which it relates. The other subsequent expenditure is recognised in expenses as incurred. Amortisation Amortisation is charged to the statements of comprehensive income on a straight-line basis over the estimated useful lives of intangible assets, other than goodwill, from the date that they are available for use, since this most closely reflects the expected pattern of consumption of the future economic benefits embodied in the asset, unless such lives are indefinite. Intangible assets with an indefinite useful life are systematically tested for impairment at each reporting date. Other intangible assets are amortised from the date they are available for use. The estimated useful lives are as follows Software licenses 5-15 years Deferred underwriting license fee and deferred stock exchange membership fee 5 years Amortisation methods, useful lives and residual values are reviewed at each financial year-end and adjusted if appropriate.

5.11 Leasehold Leasehold is presented at cost net accumulated amortisation. The amortisation is calculated using the straight-line method over the lease periods.

5.12 Investment Property Investment property consists of buildings and areas for rent of the Bank and subsidiaries. Investment property is measured at cost on initial recognition and subsequently at fair value and is presented as part of other assets. Changes in fair value are recognised in the statements of comprehensive income. Annual Report 2011 Financial Report 103

5.13 Impairment The carrying amounts of the Bank and subsidiaries’ assets are reviewed at each reporting date to determine whether there is any indication of impairment. If any such indication exists, the assets’ recoverable amounts are estimated. For goodwill and intangible assets that have indefinite useful lives or are not yet available for use, the recoverable amount is estimated each year at the same time. An impairment loss is recognised if the carrying amount of an asset or its cash-generating unit exceeds its recoverable amount. The impairment loss is recognised in the statements of comprehensive income unless it reverses a previous revaluation credited to equity, in which case it is charged to equity and other comprehensive income. When a decline in the fair value of an available-for-sale financial asset has been recognised directly in equity and other comprehensive income and there is objective evidence that the value of the asset is impaired, the cumulative loss that had been recognised directly in equity and other comprehensive income is recognised in the statements of comprehensive income even though the financial asset has not been derecognised. The amount of the cumulative loss that is recognised in the statements of comprehensive income is the difference between the carrying amount and current fair value, less any impairment loss on that financial asset previously recognised in the statements of comprehensive income. Calculation of recoverable amount The recoverable amount of held-to-maturity securities and receivables carried at amortised cost is calculated as the present value of the estimated future cash flows discounted at the original effective interest rate. Receivables with a short duration are not discounted. The recoverable amount of available-for-sale financial assets is calculated by reference to the fair value. The recoverable amount of a non-financial asset is the greater of the asset’s value in use and fair value less costs to sell. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. For an asset that does not generate cash inflows largely independent of those from other assets, the recoverable amount is determined for the cash-generating unit to which the asset belongs. Annual Report 2011 104 Financial Report

Reversals of impairment An impairment loss in respect of a financial asset is reversed if the subsequent increase in recoverable amount can be related objectively to an event occurring after the impairment loss was recognised in the statements of comprehensive income. For financial assets carried at amortised cost, the reversal is recognised in the statements of comprehensive income. For available-for-sale financial assets, the reversal is recognised in other comprehensive income. An impairment loss in respect of goodwill is not reversed. Impairment losses recognised in prior periods in respect of other non-financial assets are assessed at each reporting date for any indications that the loss has decreased or no longer exists. An impairment loss is reversed if there has been a change in the estimates used to determine the recoverable amount. An impairment loss is reversed only to the extent that the asset’s carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortisation, if no impairment loss had been recognised.

5.14 Interest-bearing liabilities Interest-bearing liabilities are recognised initially at fair value less attributable transaction charges. Subsequent to initial recognition, interest-bearing liabilities are stated at amortised cost with any difference between cost and redemption value being recognised in the statements of comprehensive income over the period of the borrowings on an effective interest basis. The Bank recognised and eliminated such items on this financial statements by Settlement Date method.

5.15 Provisions A provision is recognised in the statement of financial position when the Bank has a present legal or constructive obligation as a result of a past event that can be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the obligation. Provisions are determined by discounting the expected future cash flows at a pre-tax rate the reflects current market assessments of the time value of money and the risks specific to the liability. The unwinding of the discount is recognised as finance cost. Provisions for commitments not recognised in the statements of financial position relate to credit risk transactions ie., Avals on bills, Acceptances, Letters of Indemnity - Borrowing, Other Guarantees and Letters of Credit, etc. A provision is recognised when the transactions relate to loans that are classified as sub- standard, doubtful, doubtful of loss and loss assets. The provisions have been specifically determined by using the same rate as the allowance for doubtful accounts on each of those loans. Annual Report 2011 Financial Report 105

5.16 Life policy reserve a) The life policy reserve represents the accumulated total liability for policies in force on the reporting date. The life policy reserve is calculated according to the procedures prescribed by the Regulation on Life Assurance Policy Reserve as promulgated by the Ministry of Commerce on 23 November 2001, and is based on current assumptions. The main assumptions used relate to mortality and interest rate. The life insurance subsidiary uses mortality tables and interest rates as announced by the Office of Insurance Commission, increased with a margin for risk. b) For accident and group insurance, unearned premium reserve is set aside at the full amount of unearned premium.

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

5.18 Derivatives Trading Derivatives: Trading derivatives are carried at fair value which is determined based upon liquid (observable) market prices, reference to exchange traded prices, broker/dealer quotations, prices of other similar transactions or prices derived by using a valuation technique incorporating observable market data which is adjusted with counterparty credit risk and other risks to reflect liquidity and future operational cost. The changes in fair value of both realized and unrealized gains or losses are recognised in the statements of comprehensive income as part of gain on trading and foreign exchange transactions against assets or liabilities in the statements of financial position so that the derivative assets/liabilities represent their fair value at the reporting date. Hedging Derivatives: The Bank manages its banking exposures to market rate movements through the use of derivatives, including interest rate swaps, interest rate future and forward exchange contracts. Gains or losses resulting from the changes in fair values of contracts are recognised in accordance with the standard accounting treatment for income or expenses on hedged items as follows: Annual Report 2011 106 Financial Report

1. Where hedged items are carried at fair value, hedging instruments are carried at fair value consistently. 2. Where hedged items are carried on an accrual basis, then hedging instruments carry the accrual consistently. The Bank recognised and eliminated such items on this financial statements by Trade Date method.

5.19 Hybrid Instrument Hybrid Instruments: include a non-derivative host contract and an embedded derivative. The host contract shall be accounted for under the classification of the host contract. An embedded derivative shall be separated from the host contract and accounted for as a derivative which is carried at fair value, if and only if: 1. The economic characteristics and risks of the host contract and the embedded derivative are not closely related; 2. A separate instrument with the same terms as the embedded derivative would meet the definition of a stand-alone derivative; and 3. The hybrid instrument is not recognised at fair value through the statements of comprehensive income. If an embedded derivative is not separated, the hybrid instrument shall be accounted for under the classification of the host contract. Changes in the fair value of separated embedded derivatives are recognised in the statements of comprehensive income. Structured Note: is a hybrid instrument, which includes deposit or borrowing transaction and embedded derivative. The Bank’s management approach with regard to the accounting and assessment of fair value of deposit and borrowing transactions with embedded derivatives (structured note) are consistent with those of International Accounting Standard No. 39 (IAS 39) and the BoT notification number SOR NOR SOR 2/2554, dated 24 June 2011, titled “Permission for Commercial Banks to Undertake Deposit or Borrowing Transactions with Embedded Derivatives”, which requires commercial banks to apply IAS 39 to structured note products. The Bank has an option to classify the structured note as financial liabilities designated at fair value through profit or loss when Annual Report 2011 Financial Report 107

1. It eliminates or significantly reduces a measurement or recognition inconsistency that would otherwise arise from measuring assets or liabilities or recognising the gains and losses on them on a different basis; or 2. It is a management tool for risk management and investment, in accordance with - Documented risk management or investment strategy - Group of financial assets or financial liabilities managed and their performance evaluated on a fair value basis; and 3. It relates to financial instruments containing one or more embedded derivatives that significantly modify the cash flows resulting from those financial instruments and meets the above criteria for separation of the embedded derivative from the host contract. Changes in the fair value of financial liabilities designated at fair value through profit or loss are recognised in the statements of comprehensive income as gain or loss on financial liabilities designated at fair value through profit or loss with the corresponding entry to liabilities in the statements of financial position. The fair value designation, once made, is irrevocable. The Bank will comply with requirements of hybrid instrument if the Bank does not choose on criteria for fair value through profit or loss upon designation are not met.

Day One Profit or Loss: Gains or losses from trading derivatives are recognised at inception in the statements of comprehensive income when the fair value of those derivatives are determined based upon observable market data or supported by comparison to other observable market transactions, or based upon a valuation technique incorporating observable market data. The Bank amortizes initial gains or losses on trading transactions on a straight-line basis or on an effective interest rate basis over the life of the contract when the fair value of those trading derivatives are based upon unobservable market data or when they gains or losses on hybrid instruments. The unamortised gains or losses are recognised in the statements comprehensive of income when the market data becomes observable. The Bank recognised and eliminated such items on this financial statements by Settlement Date method. Annual Report 2011 108 Financial Report

5.20 Employee benefits Provident fund The Bank established a provident fund under the Provident Fund Act (B.E. 2530), and registered this Fund with the Ministry of Finance on 16 August 1994. According to the Fund’s Articles, every employee is entitled to apply for membership, and each member must contribute to the Fund at the rate of 3% of their basic salary, while the Bank contributes an additional 3.0% - 4.5%. Upon termination of employment, employees are entitled to receive this benefit except when terminated “without compensation”. Provision for retirement benefits Under the labor laws and the Bank and its subsidiaries’ employment policy, all employees are entitled to severance pay upon retirement. The Bank and its subsidiaries determines the net obligation in respect of defined retirement by using historical data in estimating the amount of future benefits that employees have earned in return for their service in the current and prior periods. The discount rate is determined by reference to market yields on high quality government bonds. The provision for retirement benefit is calculated by professional actuary using The Projected Unit Credit Method and presented as part of provision. The Bank and its subsidiaries recognise all acturial gains and losses in other comprehensive income and all expenses related to provision for retirement benefits are recognized as personnel expenses in the statement of comprehensive income. Short-term employee benefits Short-term employee benefits are expensed as the related service is provided. A liability is recognised for the amount expected to be paid under short-term cash bonus or profit-sharing plans if the Bank and subsidiaries have a present legal or constructive obligation to pay this amount as a result of past service provided by the employee, and the obligation can be estimated reliably. Annual Report 2011 Financial Report 109

5.21 Recognition of income Interest and discount income on loans are recognised on an accrual basis, except when interest payments are in arrears for more than three months when, regardless of collateral, the cash basis is adopted. In compliance with the BoT’s regulation, the Bank reverses accrued interest receivable on loans for which repayments are more than three months in arrears. The asset management subsidiary recognises interest income on investments in receivables and loans on a cash basis. Income from factoring business is recognised on an accrual basis. The lease income of subsidiaries is recognised as follows: - Income under finance lease agreements is recognised on the basis of installment payments due by using the effective interest rate method, calculated from the balance of the net investment in each installment. When installment payments are in arrears for more than three months, the cash basis is adopted. - Income under operating lease agreements is recognised on the basis of installment payments due. When installment payments are in arrears for more than three months, the cash basis is adopted.

Premium income is recognised as income when underwriting of the insurance is approved. Premium due and uncollected at the reporting date is recognised as income only if the policy is still in force, and is calculated based on the persistency rate.

5.22 Recognition of interest expense Interest expense is recognised on an accrual basis. Annual Report 2011 110 Financial Report

5.23 Income tax Income tax expenses for the year comprises current and deferred tax. Current and deferred tax are recognised in profit or loss except to the extent that it relates to items recognised directly in equity, in which case it is recognised in equity or in other comprehensive income. Current tax Current tax is the expected tax payable on the taxable income or loss for the year, using tax rates enacted or substantively enacted at the reporting date, and any adjustment to tax payable in respect of previous years. Deferred tax Deferred tax is recognised in respect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. Deferred tax is measured at the tax rates that are expected to be applied to the temporary differences when they reverse, using tax rates enacted or substantively enacted at the reporting date. The Bank and its subsidiaries takes into account the impact of uncertain tax positions in determining the amount of income tax. The Bank and its subsidiaries believes that its accruals for tax liabilities are adequate for all open tax years based on its assessment of many factors, including interpretations of tax law, prior experience and a series of judgements about future events; such changes to tax liabilities will impact tax expense in the period that such a determination is made. Deferred tax assets and liabilities are offset if there is a legally enforceable right to offset current tax liabilities and assets, and they relate to income taxes levied by the same tax authority on the same taxable entity. A deferred tax asset is recognised to the extent that it is probable that future taxable profits will be available against which the temporary differences can be utilised. Deferred tax assets are reviewed at each reporting date and reduced to the extent that it is no longer probable that the related tax benefit will be realized. Annual Report 2011 Financial Report 111

5.24 Earnings per share Basic earnings per share is calculated by dividing the profit or loss attributable to equity holders of the Bank on ordinary shareholders of the Bank by the weighted average number of ordinary shares in issue during the period.

5.25 Translation of foreign currencies Assets and liabilities denominated in foreign currencies are translated into Thai Baht at the rates of exchange prevailing on the dates of the transactions. Assets and liabilities including the statement of financial position of the Bank’s foreign branches that are denominated in foreign currencies at the reporting date are translated into Thai Baht at the reference rates announced by the BoT on that date. The statements of comprehensive income of the Bank’s foreign branches are translated into Thai Baht at the reference rates announced by the BoT at the transaction date rate. Exchange gains or losses on translation is recognised in the statements of comprehensive income or directly in equity and other comprehensive income, according to the gains or losses on change in fair value of the related assets and liabilities. Exchange gains or losses on transactions in foreign currencies and foreign exchange differences arising on the translation of financial statements of the Bank’s foreign branches are recognised in the statements of comprehensive income.

5.26 Trade Date – Settlement Date policy Trade Date policy means the Bank recognises and presents such items on Financial Statements on the date both counterparties decide to mutually commit on sale agreement, eliminates those items on Financial Statements when the sale agreement is matured or cancelled as well as recognises Gain or Loss from such agreement. Settlement Date policy means the Bank recognises and presents such items on Financial Statements on the date cash settlement or asset delivery and recognises gain or loss from such agreement. Annual Report 2011 112 Financial Report

6 CAPITAL REQUIREMENTS The ratios of capital to assets (Capital Adequacy Ratio) as of 31 December 2011 and 2010 were calculated from the financial statements of the Bank. The Bank has chosen to adopt the Standardized Approach in compliance with the Basel II Accord, which is consistent with BoT requirements. (Million Baht) 2011 2010 Tier 1 Capital Issued and fully paid up share capital, premiums on share capital 42,036 42,036 Legal reserves 3,050 3,050 Net profit after appropriation 83,833 67,397 Less Deferred tax assets (6,690) (6,547) Investments in subordinated debt of other financial institutions (Already included in their capital requirements) (1) - Total Tier 1 Capital Base 122,228 105,936 Tier 2 Capital Surplus on land revaluation 4,544 4,585 Surplus on premises revaluation 1,938 2,023 Surplus on marketable equity securities-available-for-sale investments revaluation 973 616 Provision for normal assets 15,866 14,140 Subordinated debentures 29,698 30,569 Less Investments in subordinated debt of other financial institutions (Already included in their capital requirements) (1) - Total Tier 2 Capital Base 53,018 51,933 Total Capital Base 175,246 157,869

Total Risk-Weighted Assets 1,269,282 1,131,218

Annual Report 2011 Financial Report 113

The BoT’s regulations require that banks registered in Thailand maintain a capital adequacy ratio of not less than 8.5% and that tier-1 capital ratio must not be less than 4.25% of such assets and contingencies. Capital adequacy ratios maintained by the Bank were as follows:

Percentage 2011 2010 Capital adequacy ratio 13.81 13.96 Tier-1 Capital ratio 9.63 9.37

In accordance with the BoT’s directive number SOR NOR SOR 25/2552, dated 14 December 2009, titled “The disclosure of capital requirements of commercial banks” requires the Bank to disclose the capital requirements as of 31 December 2011 through the website “http://www.kasikornbank.com/EN/Investors/FinanInfoReports/Pages/FinancialReports.aspx” under the investor relations section within 4 months after 31 December 2011.

In accordance with the BoT’s directive number SOR NOR SOR 6/2553, dated 18 June 2010, titled “Prudential regulation on consolidated supervision”, requires KASIKORNBANK FINANCIAL CONGLOMERATE to disclose the capital requirements as of 31 December 2011 through the website “http://www.kasikornbank.com/EN/Investors/FinanInfoReports/Pages/Financial Reports.aspx” under the investor relations section within 4 months after 31 December 2011.

7 SUPPLEMENTARY INFORMATION OF CASH FLOWS 7.1 Significant non-cash items Significant non-cash items for the years ended 31 December 2011 and 2010 are as follows: (Million Baht) Consolidated The Bank 2011 2010 2011 2010 Revaluation surplus on available-for-sale investments 841 856 900 58 The realized portion of the appraised surplus on asset revaluation (138) (117) (138) (117) Foreclosed properties arising from auction and debt settlement 3,996 4,653 3,793 4,253

Annual Report 2011 114 Financial Report

8 INTERBANK AND MONEY MARKET ITEMS - NET (ASSETS) Interbank and money market items - net (assets) as of 31 December 2011 and 2010 consisted of: (Million Baht) Consolidated 2011 2010 At call Term Total At call Term Total 1. Domestic The BoT and FIDF 827 78,200 79,027 7,034 74,480 81,514 Commercial banks 500 14,627 15,127 308 2,120 2,428 Specialized financial institutions 53 60 113 2 200 202 Other financial institutions 309 465 774 250 1,360 1,610 Total 1,689 93,352 95,041 7,594 78,160 85,754 Add Accrued interest receivable 5 100 105 3 20 23 Less Allowance for doubtful accounts (3) (41) (44) (5) (51) (56) Total Domestic 1,691 93,411 95,102 7,592 78,129 85,721 2. Foreign US Dollars 5,975 1,598 7,573 6,213 1,509 7,722 Japanese Yen 113 - 113 92 - 92 Euro 752 - 752 433 - 433 Other currencies 838 7,559 8,397 694 2,888 3,582 Total 7,678 9,157 16,835 7,432 4,397 11,829 Add Accrued interest receivable - 48 48 - 13 13 Less Allowance for doubtful accounts - (16) (16) (3) - (3) Total Foreign 7,678 9,189 16,867 7,429 4,410 11,839 Total Domestic and Foreign 9,369 102,600 111,969 15,021 82,539 97,560

Annual Report 2011 Financial Report 115

(Million Baht) The Bank 2011 2010 At call Term Total At call Term Total 1. Domestic The BoT and FIDF 827 78,000 78,827 7,034 74,480 81,514 Commercial banks 50 14,051 14,101 95 1,450 1,545 Other financial institutions 309 20 329 516 1,360 1,876 Total 1,186 92,071 93,257 7,645 77,290 84,935 Add Accrued interest receivable - 95 95 - 19 19 Less Allowance for doubtful accounts (3) (11) (14) (5) (20) (25) Total Domestic 1,183 92,155 93,338 7,640 77,289 84,929 2. Foreign US Dollars 5,975 1,598 7,573 6,213 1,509 7,722 Japanese Yen 113 - 113 92 - 92 Euro 752 - 752 433 - 433 Other currencies 838 7,559 8,397 694 2,888 3,582 Total 7,678 9,157 16,835 7,432 4,397 11,829 Add Accrued interest receivable - 48 48 - 13 13 Less Allowance for doubtful accounts - (16) (16) (3) - (3) Total Foreign 7,678 9,189 16,867 7,429 4,410 11,839 Total Domestic and Foreign 8,861 101,344 110,205 15,069 81,699 96,768

Annual Report 2011 116 Financial Report

9 DERIVATIVES 9.1 Derivatives held for trading Fair value and notional amount classified by type of risks as of 31 December 2011 and 2010 consisted of: (Million Baht) Consolidated 2011 Fair Value Notional amount classified by maturity Type of risk Assets Liabilities Up to 1 year Over 1 year Total Exchange rate 17,317 16,880 940,181 104,610 1,044,791 Interest rate 9,586 10,444 232,153 700,119 932,272 Others - Commodities 119 112 4,832 53 4,885 - Equities 15 - - 46 46 - Others (311) - - - - Total 26,726 27,436 1,177,166 804,828 1,981,994

(Million Baht) Consolidated 2010 Fair Value Notional amount classified by maturity Type of risk Assets Liabilities Up to 1 year Over 1 year Total Exchange rate 17,394 16,398 730,030 72,283 802,313 Interest rate 11,075 11,193 197,032 575,265 772,297 Others - Commodities 811 808 4,532 - 4,532 - Credit - - 100 - 100 - Equities 12 - - 53 53 - Others (232) - - - - Total 29,060 28,399 931,694 647,601 1,579,295 Annual Report 2011 Financial Report 117

(Million Baht) The Bank 2011 Fair Value Notional amount classified by maturity Type of risk Assets Liabilities Up to 1 year Over 1 year Total Exchange rate 17,321 16,880 940,391 104,610 1,045,001 Interest rate 9,586 10,444 232,153 700,119 932,272 Others - Commodities 119 112 4,832 53 4,885 - Equities 15 - - 46 46 - Others (311) - - - - Total 26,730 27,436 1,177,376 804,828 1,982,204

(Million Baht) The Bank 2010 Fair Value Notional amount classified by maturity Type of risk Assets Liabilities Up to 1 year Over 1 year Total Exchange rate 17,394 16,397 729,911 72,283 802,194 Interest rate 11,075 11,193 197,032 575,265 772,297 Others - Commodities 811 808 4,532 - 4,532 - Credit - - 100 - 100 - Equities 12 - - 53 53 - Others (232) - - - - Total 29,060 28,398 931,575 647,601 1,579,176 Annual Report 2011 118 Financial Report

Proportion of the notional of derivative transactions classified by counter parties as of 31 December 2011 and 2010 consisted of: Consolidated The Bank 2011 2010 2011 2010 COUNTERPARTY Proportion (%) Proportion (%) Financial institution 81 79 81 79 Company - other 19 21 19 21 Total 100 100 100 100

10 INVESTMENTS - NET 10.1 Type of investments Investments as of 31 December 2011 and 2010 consisted of: (Million Baht) Consolidated The Bank 2011 2010 2011 2010 Fair Value Fair Value Fair Value Fair Value 1. Trading investments 1.1 Government and state enterprise securities 3,846 14,540 3,846 14,540 1.2 Private enterprise debt instruments 1,433 784 1,433 784 1.3 Marketable equity securities - domestic 313 316 276 274 Total 5,592 15,640 5,555 15,598 2. Available-for-sale investments 2.1 Government and state enterprise securities 148,446 143,586 143,046 139,662 2.2 Private enterprise debt instruments 81 1,234 - 839 2.3 Foreign debt instruments 8,464 6,141 6,058 5,509 2.4 Marketable equity securities - domestic 10,809 11,601 1,359 1,316 2.5 Marketable equity securities - overseas 1,358 345 1,048 345 2.6 Other 200 - - - Total 169,358 162,907 151,511 147,671 Annual Report 2011 Financial Report 119

(Million Baht) Consolidated The Bank 2011 2010 2011 2010 Cost Value/ Cost Value/ Cost Value/ Cost Value/ Amortised Cost Amortised Cost Amortised Cost Amortised Cost Value Value Value Value 3. Held-to-maturity debt instruments 3.1 Government and state enterprise securities 54,895 51,477 1,237 3,261 3.2 Private enterprise debt instruments 31,107 17,905 583 583 3.3 Foreign debt instruments 2,001 2,059 - 93 3.4 Investments in receivables 63 485 50 466 Total 88,066 71,926 1,870 4,403 Less Allowance for impairment (647) (902) (627) (881) Total 87,419 71,024 1,243 3,522 4. General investments 4.1 Non-marketable equity securities - domestic 1,554 1,917 1,261 1,616 4.2 Non-marketable equity securities - overseas 437 307 437 307 Total 1,991 2,224 1,698 1,923 Less Allowance for impairment (217) (715) (100) (599) Total 1,774 1,509 1,598 1,324 Total Investments - net 264,143 251,080 159,907 168,115

As of 31 December 2011 and 2010, investments in held-to-maturity debt instruments, which are government and state enterprise securities, included promissory notes from Thai Asset Management Corporation of Baht 173 million and Baht 2,261 million, respectively. 10.2 Revaluation surplus on available-for-sale investments Revaluation surplus on available-for-sale investments as of 31 December 2011 and 2010 consisted of: (Million Baht) Consolidated The Bank 2011 2010 2011 2010 Revaluation surplus on available-for-sale investments Debt instruments 263 40 251 57 Equity securities 2,378 1,760 1,664 959 Total 2,641 1,800 1,915 1,016 Annual Report 2011 120 Financial Report

10.3 Maturity for debt instruments As of 31 December 2011 and 2010 a maturity analysis for debt instruments resulted in the following: (Million Baht) Consolidated 2011 2010 Maturity Maturity Over Over 1 year to Over 1 year to Over 1 year 5 years 5 years Total 1 year 5 years 5 years Total 1. Available-for-sale investments 1.1 Government and state enterprise securities 53,155 92,317 2,469 147,941 44,596 94,237 4,585 143,418 1.2 Private enterprise debt instruments 4 18 102 124 561 625 96 1,282 1.3 Foreign debt instruments 638 6,774 1,007 8,419 452 4,985 654 6,091 Total 53,797 99,109 3,578 156,484 45,609 99,847 5,335 150,791 (Less) Add Allowance for revaluation (93) 491 155 553 (63) (24) 303 216 Less Allowance for impairment - - (46) (46) - - (46) (46) Total 53,704 99,600 3,687 156,991 45,546 99,823 5,592 150,961 2. Held-to-maturity debt instruments 2.1 Government and state enterprise securities 617 2,471 51,807 54,895 410 5,171 45,896 51,477 2.2 Private enterprise debt instruments 1,941 7,722 21,444 31,107 755 3,678 13,472 17,905 2.3 Foreign debt instruments - 793 1,208 2,001 93 476 1,490 2,059 2.4 Investments in receivables 58 5 - 63 472 13 - 485 Total 2,616 10,991 74,459 88,066 1,730 9,338 60,858 71,926 Less Allowance for impairment (48) - (599) (647) (303) - (599) (902) Total 2,568 10,991 73,860 87,419 1,427 9,338 60,259 71,024 Total Debt Instruments 56,272 110,591 77,547 244,410 46,973 109,161 65,851 221,985 Annual Report 2011 Financial Report 121

(Million Baht) The Bank 2011 2010 Maturity Maturity Over Over 1 year to Over 1 year to Over 1 year 5 years 5 years Total 1 year 5 years 5 years Total 1. Available-for-sale investments 1.1 Government and state enterprise securities 50,215 91,499 1,029 142,743 42,952 93,512 3,184 139,648 1.2 Private enterprise debt instruments - - 46 46 240 603 46 889 1.3 Foreign debt instruments 638 5,233 159 6,030 452 4,985 - 5,437 Total 50,853 96,732 1,234 148,819 43,644 99,100 3,230 145,974 (Less) Add Allowance for revaluation (93) 385 39 331 (66) (120) 268 82 Less Allowance for impairment - - (46) (46) - - (46) (46) Total 50,760 97,117 1,227 149,104 43,578 98,980 3,452 146,010 2. Held-to-maturity debt instruments 2.1 Government and state enterprise securities 63 1,081 93 1,237 - 3,261 - 3,261 2.2 Private enterprise debt instruments - - 583 583 - - 583 583 2.3 Foreign debt instruments - - - - 93 - - 93 2.4 Investments in receivables 45 5 - 50 459 7 - 466 Total 108 1,086 676 1,870 552 3,268 583 4,403 Less Allowance for impairment (44) - (583) (627) (298) - (583) (881) Total 64 1,086 93 1,243 254 3,268 - 3,522 Total Debt Instruments 50,824 98,203 1,320 150,347 43,832 102,248 3,452 149,532

Annual Report 2011 122 Financial Report

10.4 Investments in other companies having a going concern As of 31 December 2011 and 2010, investments held by the Bank and its subsidiaries in financial institutions that were closed on 8 December 1997, or investments in listed companies which meet SET’s criteria for delisting, and are in default on debt instruments, or companies whose ability to continue as a going concern is uncertain, or unlisted companies whose financial position and operating results are the same as companies which meet SET’s criteria for delisting or investments in receivables with uncertainty in settlement or in default, were as follows: (Million Baht) 2011 Consolidated The Bank Cost Value/ Allowance for Cost Value/ Allowance for

Book Value Fair Value Impairment Book Value Fair Value Impairment 1. Closed financial institutions - Debt Instrument 130 - (130) 130 - (130) 2. Listed companies which meet SET’s criteria for delisting, and are in default on debt instruments - Debt Instrument 46 - (46) 46 - (46) 3. Companies whose ability to continue as a going concern is uncertain, or unlisted companies whose financial position and operating results are the same as companies which meet SET’s criteria for delisting - Equity Securities 423 381 (42) 423 381 (42) - Debt Instrument 453 - (453) 453 - (453) 4. Investments in receivables with uncertainty in settlement or in default 63 15 (48) 50 6 (44) Total 1,115 396 (719) 1,102 387 (715) Annual Report 2011 Financial Report 123

(Million Baht) 2010 Consolidated The Bank Cost Value/ Allowance for Cost Value/ Allowance for

Book Value Fair Value Impairment Book Value Fair Value Impairment 1. Closed financial institutions - Debt Instrument 130 - (130) 130 - (130) 2. Listed companies which meet SET’s criteria for delisting, and are in default on debt instruments - Debt Instrument 46 - (46) 46 - (46) 3. Companies whose ability to continue as a going concern is uncertain, or unlisted companies whose financial position and operating results are the same as companies which meet SET’s criteria for delisting - Equity Securities 293 - (293) 293 - (293) - Debt Instrument 453 - (453) 453 - (453) 4. Investments in receivables with uncertainty in settlement or in default 485 183 (302) 466 168 (298) Total 1,407 183 (1,224) 1,388 168 (1,220) 10.5 Investments over 10% held by the Bank and its subsidiaries As of 31 December 2011 and 2010, investments held by the Bank and its subsidiaries, that were more than 10% of those companies’ shares and were not investments in subsidiaries and associated companies, classified by industry were as follows: (Million Baht) Consolidated The Bank 2011 2010 2011 2010 Manufacturing and commerce 60 80 - - Property development and construction 592 496 592 496 Infrastructure and services 1 1 1 1 Others 895 1,155 138 285 Total 1,548 1,732 731 782 Annual Report 2011 124 Financial Report

11 INVESTMENTS IN SUBSIDIARIES AND ASSOCIATED COMPANIES - NET 11.1 Type of investments in subsidiaries and associated companies As of 31 December 2011 and 2010, investments in ordinary shares of subsidiaries and associated companies were as follows: (Million Baht) Consolidated % Shareholding Direct and indirect Cost method Equity method Type of Type of Business Share 2011 2010 2011 2010 2011 2010 Associated companies Goco Co., Ltd.1) Information and communication System Development Ordinary 22.65% 30.74% 4 5 4 5 Processing Center Co., Ltd. Service Ordinary 30.00% 30.00% 15 15 117 109 Rural Capital Partners Co., Ltd. 2) Venture Capital Ordinary - 27.50% - 2 - 2 Lawson-Marsh Events Co., Ltd. 1) Professional Conference Organizer Ordinary 35.71% 35.71% 5 5 5 5 Humanica Co., Ltd. 1) Software design and development Ordinary 47.60% 21.60% 26 13 26 13 2Spot Communications Co., Ltd. 1) Character design and Development Ordinary 6.63% 20.17% - 5 - 5 Total 50 45 152 139 Less Allowance for impairment - (1) - (1) Investments in Associated Companies - Net 50 44 152 138

1) The Bank holds shares indirectly through K-SME Venture Capital Co., Ltd. 2) The Bank sold all investments in Rural Capital Partnurs Co., Ltd. On 22 September 2011. On 23 March 2011, 2Spot Communications Co., Ltd. repurchased their stocks from K-SME Venture Capital Co., Ltd., thus the percent of indirect shareholding via K-SME decreased from 20.17% to 6.63%. As the result, K-SME transferred such investment from investments in associates to general investments.

Annual Report 2011 Financial Report 125

(Million Baht) The Bank % Shareholding Direct and indirect Cost method Dividend income Type of Type of Business Share 2011 2010 2011 2010 2011 2010 Subsidiaries KASIKORN ASSET MANAGEMENT CO., LTD. Mutual Fund Mutual Fund Management OrdinaryManagement 100.00% Ordinary100.00% 100.00%2,003 2,003100.00% 8822,003 826 2,003 882 826 KASIKORN RESEARCH CENTER CO., LTD. Service OrdinaryService 100.00% Ordinary 100.00% 100.00% 6 100.00% 6 - 6 - 6 - - KASIKORN SECURITIES PCL Securities Securities Business OrdinaryBusiness 99.99% Ordinary99.99% 1,51299.99% 1,31299.99% 2011,512 - 1,312 201 - KASIKORN LEASING CO., LTD. Lending OrdinaryLending 100.00% Ordinary 100.00% 100.00% 900 100.00% 900 - 900 - 900 - - KASIKORN FACTORY & EQUIPMENT CO., LTD. Lending OrdinaryLending 100.00% Ordinary 100.00% 100.00% 237 100.00% 237 - 237 - 237 - - Phethai Asset Management Co., Ltd. Asset Asset Management OrdinaryManagement 100.00% Ordinary100.00% 100.00%3,350 5,000100.00% - 3,350 - 5,000 - - KHAO KLA Venture Capital Management Venture Capital Venture Capital Co., Ltd. Management OrdinaryManagement 100.00% Ordinary100.00% 100.00%- 100.00%------K-SME Venture Capital Co., Ltd. Venture Capital Venture Ordinary Capital 100.00% Ordinary 100.00% 100.00% 200 100.00% 200 - 200 - 200 - - Progress Software Co., Ltd. Service OrdinaryService 100.00% Ordinary 100.00% 100.00% 19 100.00% 19 7 19 25 19 7 25 Progress Plus Co., Ltd. Service OrdinaryService 100.00% Ordinary 100.00% 100.00% 4 100.00% 4 - 4 3 4 - 3 Progress Appraisal Co., Ltd. Service OrdinaryService 100.00% Ordinary 100.00% 100.00% 5 100.00% 5 33 5 20 5 33 20 Progress Gunpai Co., Ltd. Service OrdinaryService 100.00% Ordinary 100.00% 100.00% 21 100.00% 21 50 21 50 21 50 50 Progress Management Co., Ltd. Service OrdinaryService 100.00% Ordinary 100.00% 100.00% 6 100.00% 6 1 6 1 6 1 1 Progress Facilities Management Co., Ltd. Service OrdinaryService 100.00% Ordinary 100.00% 100.00% 5 100.00% 5 11 5 7 5 11 7 Progress Service Co., Ltd. Service OrdinaryService 100.00% Ordinary100.00% 100.00% 2 100.00% 2 21 2 16 2 21 16 Progress Land and Buildings Co., Ltd. Property Property Development OrdinaryDevelopment 100.00% Ordinary100.00% 100.00%160 100.00%160 - 160 - 160 - - Progress Storage Co., Ltd. Service OrdinaryService 100.00% Ordinary 100.00% 100.00% 3 100.00% 3 9 3 8 3 9 8 Progress HR Co., Ltd. Service OrdinaryService 100.00% Ordinary 100.00% 100.00% 1 100.00% 1 20 1 19 1 20 19 Progress Service Support Co., Ltd. Service OrdinaryService 100.00% Ordinary 100.00% 100.00% 4 100.00% 4 7 4 3 4 7 3 Progress Collection Co., Ltd. Service OrdinaryService 100.00% Ordinary 100.00% 100.00% 5 100.00% 5 2 5 - 5 2 - Progress Training Co., Ltd. Service OrdinaryService 100.00% Ordinary 100.00% 100.00% 2 100.00% 2 1 2 1 2 1 1 Progress Multi Insurance Broker Co., Ltd. Insurance Insurance Broker Ordinary Broker100.00% 100.00%Ordinary - 100.00% 5 100.00%- - - 5 - - Thanyathanathavee Co., Ltd. Investment in Investment in other other companies Ordinary 100.00%companies100.00% 1,149Ordinary 1,149 100.00%- -100.00% 1,149 1,149 - - Thanyathamrongkij Co., Ltd. Investment in Investment in other other companies Ordinary 100.00%companies100.00% 1,149Ordinary 1,149 100.00%- -100.00% 1,149 1,149 - - Thanyanithiwattana Co., Ltd. Investment in Investment in other other companies Ordinary 100.00%companies100.00% 2,204Ordinary 2,204 100.00%67 -100.00% 2,204 2,204 67 - Ruang Khao Phuean Thai Joint Investment Investment in Investment in Agreement other other companies Ordinary 100.00%companies100.00% - Ordinary - 100.00%- -100.00% - - - - Muangthai Group Holding Co., Ltd. Holding Ordinary 51.00%Holding 51.00% 3,077Ordinary 3,077 51.00%75 14151.00% 3,077 3,077 75 141 Muang Thai Life Assurance Co., Ltd. Life Insurance Ordinary 38.25%Life Insurance 38.25% - Ordinary - 38.25% - - 38.25% - - - - Muangthai Broker Co., Ltd. Insurance Insurance Broker Ordinary 49.98% Broker49.98% - Ordinary - 49.98%- - 49.98% - - - - Annual Report 2011 126 Financial Report

(Million Baht) The Bank % Shareholding Direct and indirect Cost method Dividend income Type of Type of Business Share 2011 2010 2011 2010 2011 2010

Associated companies Processing Center Co., Ltd. Service Ordinary 30.00% 30.00% 15 15 4 4 Rural Capital Partners Co., Ltd. Venture Capital Ordinary - 27.50% - 2 - - Total 16,039 17,496 1,391 1,124 Less Allowance for impairment (1,913) (1,913) Investments in Subsidiaries and Associated Companies - Net 14,126 15,583 1,391 1,124

The recording of investments in associated companies using the equity method in the consolidated financial statements is based on financial information obtained from audited or reviewed financial statements and from management information that has not been audited or reviewed by the auditors.

11.2 Financial positions and results of operations of the Bank’s subsidiaries and associated companies The summary of financial positions and results of operations of the Bank’s subsidiaries and associated companies are set out below: (Million Baht) Statements of Financial Position 31 December 2011 31 December 2010 Total Total Total Total Total Total

Assets Liabilities Equity Assets Liabilities Equity Subsidiaries K Companies 79,212 74,146 5,066 65,790 61,678 4,112 Companies in MTGH Group 119,397 101,644 17,753 96,883 81,366 15,517 Phethai – AMC 1,871 44 1,827 3,502 52 3,450 Support Service Providers to KASIKORNBANKGROUP (P Companies) and others 10,958 772 10,186 11,053 1,078 9,975 Total 211,438 176,606 34,832 177,228 144,174 33,054 Associated Companies 502 108 394 413 42 371

Annual Report 2011 Financial Report 127

(Million Baht) Statements of Comprehensive Income For the Years Ended 31 December 2011 2010 Operating Operating Operating Operating

Income Expenses Net Profit Income Expenses Net Profit Subsidiaries K Companies 4,940 3,102 1,838 4,303 2,871 1,432 Companies in MTGH Group 6,967* 4,086 2,881 5,426* 3,079 2,347 Phethai – AMC 62 35 27 72 40 32 Support Service Providers to KASIKORNBANKGROUP (P Companies) and others 4,226 3,873 353 3,603 3,368 235 Total 16,195 11,096 5,099 13,404 9,358 4,046 Associated Companies 252 206 46 202 180 22 * Excluding inter-group transactions being dividend from subsidiaries for the years ended 31 December 2011 and 2010 in the amount of Baht 267 million and Baht 1,500 million, respectively. Annual Report 2011 128 Financial Report

11.3 Disclosure of Statements of Cash Flows of Asset Management Company (“AMC”)

Phethai Asset Management Company Limited Statements of Cash Flows For the Years Ended 31 December 2011 and 2010

Million Baht 2011 2010 CASH FLOWS FROM OPERATING ACTIVITIES Income before income tax 27 32 Add (Less) Adjustments to reconcile income before income tax to net from operating activities Interest income from amortisation of revaluation allowance for debt restructuring - (1) Loss on impairment of properties foreclosed 90 40 Reversal of loss on impairment of other assets - (2) Reversal of bad debt and doubtful accounts (45) (1) Loss on debt restructuring 1 1 Gain on transfer of changing account (15) (6) Amortisation of discount on promissory note receivbles (4) (16) Decrease in accrued expenses (1) (1) 53 46 Net income from interest (45) (53) Proceeds from interest 45 53 Income tax received 4 10 Income from operations before changes in operating assets and liabilities 57 56 Annual Report 2011 Financial Report 129

Phethai Asset Management Company Limited Statements of Cash Flows (Continued) For the Years Ended 31 December 2011 and 2010

Million Baht 2011 2010 Decrease in operating assets Investments in receivables 4 51 Loans 122 160 Properties foreclosed 359 962 Other assets 366 6 (Decrease) increase in operating liabilities Other liabilities (8) 6 Net cash provided by operating activities 900 1,241 CASH FLOWS FROM INVESTING ACTIVITIES Proceeds from disposal of investments in securities 1 1 Net cash provided by investing activities 1 1 CASH FLOWS FROM FINANCING ACTIVITIES Cash paid for share capital decrease (1,650) (998) Net cash used in financing activities (1,650) (998) Net (decrease) increase in cash (749) 244 Cash at the beginning of the year 804 560 Cash at the end of the year 55 804 Annual Report 2011 130 Financial Report

12 LOANS TO CUSTOMERS AND ACCRUED INTEREST RECEIVABLES - NET Loans to customers and accrued interest receivables - net as of 31 December 2011 and 2010 consisted of: 12.1 Classified by Type of Loans (Million Baht) Consolidated The Bank 2011 2010 2011 2010 Overdrafts 197,077 183,904 196,678 183,367 Loans 562,656 478,921 625,626 528,760 Bills 328,613 311,741 330,533 313,324 Hire purchase receivables 63,663 53,776 - - Finance lease receivables 10,956 7,006 - - Others 54,432 47,233 48,877 42,548 Less Deferred revenue (6,563) (5,600) (395) (291) Total loans to customers net from deferred revenue 1,210,834 1,076,981 1,201,319 1,067,708 Add Accrued interest receivables 2,105 1,417 1,896 1,225 Total loans to customers net from deferred revenue plus accrued interest receivables 1,212,939 1,078,398 1,203,215 1,068,933 Less Allowance for doubtful accounts 1. Minimum reserve of BoT’s Regulations - Individual approach (21,769) (20,982) (21,607) (20,599) 2. Excess allowance (13,385) (11,346) (12,553) (10,600) 3. Credit balance transaction (5) - - - 4. Loan from life insurance business (43) (117) - - Less Revaluation allowance for debt restructuring (5,141) (4,387) (5,140) (4,387) Total Loans to customers and accrued interest receivables - net 1,172,596 1,041,566 1,163,915 1,033,347 Annual Report 2011 Financial Report 131

12.2 Classified by Currencies and Residency of Borrowers (Million Baht) Consolidated 2011 2010 Domestic Foreign Total Domestic Foreign Total Baht 1,115,815 10,199 1,126,014 1,005,079 6,530 1,011,609 US Dollars 74,713 555 75,268 60,965 528 61,493 Other currencies 6,251 3,301 9,552 3,005 874 3,879 Total 1,196,779 14,055 1,210,834 1,069,049 7,932 1,076,981

(Million Baht) The Bank 2011 2010 Domestic Foreign Total Domestic Foreign Total Baht 1,106,300 10,199 1,116,499 995,806 6,530 1,002,336 US Dollars 74,713 555 75,268 60,965 528 61,493 Other currencies 6,251 3,301 9,552 3,005 874 3,879 Total 1,187,264 14,055 1,201,319 1,059,776 7,932 1,067,708 Annual Report 2011 132 Financial Report

12.3 Classified by Type of Business and Account Status (Million Baht) Consolidated 2011 Special Sub- Doubtful Pass Mention Standard Doubtful of Loss Total Agriculture and mining 28,035 1,107 71 112 491 29,816 Manufacturing and commerce 590,864 10,988 2,991 3,059 12,440 620,342 Property development and Construction 71,215 1,411 256 357 1,967 75,206 Infrastructure and services 144,055 2,402 608 1,057 2,471 150,593 Housing loans 190,076 1,105 435 504 1,917 194,037 Others 129,079 1,798 600 591 1,808 133,876 Total 1,153,324 18,811 4,961 5,680 21,094 1,203,870 Credit balance transaction 958 Loan from life insurance business 6,006 Total 1,210,834

(Million Baht) Consolidated 2010 Special Sub- Doubtful Pass Mention Standard Doubtful of Loss Total Agriculture and mining 24,892 1,353 43 109 635 27,032 Manufacturing and commerce 551,823 14,912 1,977 4,278 11,334 584,324 Property development and Construction 56,482 1,119 204 319 2,681 60,805 Infrastructure and services 106,694 2,485 340 1,234 4,391 115,144 Housing loans 162,266 1,512 621 628 1,694 166,721 Others 111,468 1,853 607 531 1,549 116,008 Total 1,013,625 23,234 3,792 7,099 22,284 1,070,034 Credit balance transaction 1,517 Loan from life insurance business 5,430 Total 1,076,981 Annual Report 2011 Financial Report 133

(Million Baht) The Bank 2011 Special Sub- Doubtful Pass Mention Standard Doubtful of Loss Total Agriculture and mining 22,671 743 58 96 480 24,048 Manufacturing and commerce 565,125 9,737 2,900 2,902 12,058 592,722 Property development and Construction 67,233 1,101 245 343 1,735 70,657 Infrastructure and services 133,229 1,062 567 1,027 2,055 137,940 Housing loans 190,064 1,102 436 503 1,852 193,957 Others 178,467 917 556 566 1,489 181,995 Total 1,156,789 14,662 4,762 5,437 19,669 1,201,319

(Million Baht) The Bank 2010 Special Sub- Doubtful Pass Mention Standard Doubtful of Loss Total Agriculture and mining 20,392 1,030 22 92 626 22,162 Manufacturing and commerce 530,099 14,006 1,912 4,218 10,765 561,000 Property development and Construction 53,579 977 193 307 2,274 57,330 Infrastructure and services 98,444 2,245 319 1,100 4,051 106,159 Housing loans 162,245 1,508 621 628 1,597 166,599 Others 151,012 1,119 561 476 1,290 154,458 Total 1,015,771 20,885 3,628 6,821 20,603 1,067,708

Annual Report 2011 134 Financial Report

12.4 Classified by Account Status (Million Baht) Consolidated 2011 Loans and Net amount used for % Used for setting Accrued Interest set the Allowance for the Allowance for Allowance for Receivables Doubtful Accounts Doubtful Accounts Doubtful Accounts 1. Minimum reserve of BoT’s Regulations Pass 1,154,958 433,653 1 4,337 Special Mention 18,902 2,848 2 324 Sub-Standard 5,004 3,093 100 3,093 Doubtful 5,684 3,007 100 3,007 Doubtful of Loss 21,234 11,008 100 11,008 Total 1,205,782 453,609 21,769 2. Excess allowance 13,385 3. Credit balance transaction 960 5 4. Loan from life insurance business 6,197 43 Total 1,212,939 35,202

(Million Baht) Consolidated 2010 Loans and Net amount used for % Used for setting Accrued Interest set the Allowance for the Allowance for Allowance for Receivables Doubtful Accounts Doubtful Accounts Doubtful Accounts 1. Minimum reserve of BoT’s Regulations Pass 1,014,571 373,298 1 3,733 Special Mention 23,366 5,395 2 108 Sub-Standard 3,821 1,448 100 1,447 Doubtful 7,104 3,089 100 3,089 Doubtful of Loss 22,420 12,605 100 12,605 Total 1,071,282 395,835 20,982 2. Excess allowance 11,346 3. Credit balance transaction 1,517 - 4. Loan from life insurance business 5,599 117 Total 1,078,398 32,445

Annual Report 2011 Financial Report 135

(Million Baht) The Bank 2011 Loans and Net amount used for % Used for setting Accrued Interest set the Allowance for the Allowance for Allowance for Receivables Doubtful Accounts Doubtful Accounts Doubtful Accounts 1. Minimum reserve of BoT’s Regulations Pass 1,158,427 502,195 1 5,022 Special Mention 14,754 2,735 2 322 Sub-Standard 4,805 3,077 100 3,077 Doubtful 5,440 2,958 100 2,958 Doubtful of Loss 19,789 10,228 100 10,228 Total 1,203,215 521,193 21,607 2. Excess allowance 12,553 Total 34,160

(Million Baht) The Bank 2010 Loans and Net amount used for % Used for setting Accrued Interest set the Allowance for the Allowance for Allowance for Receivables Doubtful Accounts Doubtful Accounts Doubtful Accounts 1. Minimum reserve of BoT’s Regulations Pass 1,016,720 425,942 1 4,259 Special Mention 21,017 5,271 2 106 Sub-Standard 3,656 1,441 100 1,441 Doubtful 6,826 2,957 100 2,957 Doubtful of Loss 20,714 11,836 100 11,836 Total 1,068,933 447,447 20,599 2. Excess allowance 10,600 Total 31,199

Annual Report 2011 136 Financial Report

12.5 Non-performing loans (NPL) According to the BoT’s directive number SOR NOR SOR 13/2553, dated 3 December 2010, titled “Preparation and announcement of condensed report of assets and liabilities of commercial banks”. Non-performing loans (NPL gross) are defined as sub-standard quality loans, being outstanding loans of sub- standard, doubtful, doubtful of loss and loss loan accounts in accordance with the BoT’s directive number SOR NOR SOR 31/2551, dated 3 August 2008, titled “Classification and provision criteria of financial institution”. Non-performing loans, net (NPL net) refers to the non-performing loan value, net of total allowances for doubtful accounts. In accordance with the BoT’s regulations, commercial banks are required to report the following information: - Non-performing loans (NPL gross). - The ratio of NPL to total loans. - Non-performing loans, net (NPL net). - The ratio of total loans, net of allowances for doubtful accounts, which is referred to the ratio of NPL net, to total loans after deduction of allowances for doubtful accounts. Annual Report 2011 Financial Report 137

As of 31 December 2011 and 2010, the Bank and subsidiaries showed non-performing loans (including financial institutions) to comply with BoT’s regulations, summarized as follows: (Million Baht) 2011 Phethai Asset KASIKORNBANK Management Other Consolidated Non-performing loans, gross Non-performing loans 29,868 879 989 31,736 Total loans used for NPL gross ratio calculation(1) 1,295,337 913 71,844 1,297,887(2) Ratio of total loans 2.31 96.28 1.38 2.45 Non-performing loans, net Non-performing loans 13,675 646 377 14,698 Total loans used for NPL net ratio calculation(1) 1,279,144 680 71,233 1,280,850(2) Ratio of total loans 1.07 95.00 0.53 1.15

(Million Baht) 2010 Phethai Asset KASIKORNBANK Management Other Consolidated Non-performing loans, gross Non-performing loans 31,053 1,208 914 33,175 Total loans used for NPL gross ratio calculation(1) 1,138,880 1,245 57,874 1,141,206(2) Ratio of total loans 2.73 97.04 1.58 2.91 Non-performing loans, net Non-performing loans 14,806 911 305 16,022 Total loans used for NPL net ratio calculation(1) 1,122,633 948 57,265 1,124,053(2) Ratio of total loans 1.32 96.11 0.53 1.43 (1) Excluding loans from KSecurities and MTL. (2) Excluding loans to and from subsidiary companies. Annual Report 2011 138 Financial Report

12.6 Non-accrual loans based on the accrual basis As of 31 December 2011 and 2010, the Bank and subsidiaries showed non-accrual loans, gross, (including financial institutions) based on the accrual basis to comply with BoT’s regulations can be summarized as follows: (Million Baht) Consolidated The Bank 2011 2010 2011 2010 Non-accrual loans 66,394 65,593 64,643 63,467 Total loans used for ratio Calculation(1) 1,297,887(2) 1,141,206(2) 1,295,337 1,138,880 Percentage of total loans 5.12 5.75 4.99 5.57 (1) Excluding loans from KSecurities and MTL. (2) Excluding loans to and from subsidiary companies.

12.7 Listed companies that meet SET’s criteria for delisting As of 31 December 2011 and 2010, loans to listed companies that meet SET’s criteria for delisting were as follows: (Million Baht) Consolidated and The Bank 2011 2010 Loans and Loans and Accrued Allowance for Accrued Allowance for Interest Collateral Doubtful Interest Collateral Doubtful Receivables Value Accounts Receivables Value Accounts Listed companies which meet SET’s criteria for delisting 2,841 576 124 477 24 449 Annual Report 2011 Financial Report 139

12.8 Transferring of Sub-Standard Quality Assets to Thai Asset Management Corporation (“TAMC”) In accordance with the Emergency Decree on the Thai Asset Management Corporation B.E. 2544, on 12 October 2001, the Bank signed an Asset Transfer Agreement with TAMC to transfer eligible sub-standard quality assets outstanding as of 31 December 2000 to TAMC. All rights and duties associated with each transferred sub-standard quality asset were transferred to TAMC at a price determined by the appraised value of the underlying collateral assets, provided that the price did not exceed the book value of credits extended, less existing provisions outstanding, as required by law on the transfer date. TAMC has 180 days from the date of each transfer to examine any transferred assets. TAMC will then quote the transfer price within 7 days after the end of the examination period. After confirming the price, TAMC will issue non-transferable 10-year callable promissory notes guaranteed by FIDF. The notes bear interest equal to the weighted average of the deposit rates of five major banks, and are paid at the end of each year by cheque. The rights to these notes and the received notes are included in investments in held-to-maturity debt instruments. In accordance with the Emergency Decree B.E. 2544 and the Asset Transfer Agreement, TAMC and the Bank will share jointly the profits and responsibility for any losses on transferred assets, which are payable on the fifth and the tenth anniversaries of the transfers, starting from 1 July 2001. In the case of losses, the Bank will first be responsible for any loss, not exceeding 20% of the transfer price. The second portion of losses, again not exceeding 20% of the transfer price, will be equally shared by TAMC and the Bank. Any remaining loss would then be absorbed by TAMC. In addition, expenses of TAMC are included in the calculation of the gain or loss sharing. In the case of profit, the first portion of profits up to 20% of the transfer price is to be shared equally by TAMC and the Bank. Should there be any profit over and above this, the Bank is entitled to the remainder up to the gross book value of the assets, less the transfer price and the Bank’s share in the first portion of the profits. As of 31 December 2011 and 2010, the Bank has set up an estimate for loss sharing amounting to Baht 1,400 million and Baht 1,300 million, respectively. As of 30 June 2011 which is the tenth anniversary of the transfer, the gross book value of the assets transferred before deducting allowance for doubtful accounts was Baht 14,557 million and the estimated total transfer price was Baht 10,072 million, for which the Bank received promissory notes from TAMC. The liquidation process has been in process to complete within the twelfth year since the Emergency Decree on Thai Asset Management Corporation B.E. 2544 was put into effect by the Liquidation Committee. The Bank was informed that profit sharing at the end of the tenth year amounting to Baht 107 million was allocated to the Bank from TAMC. TAMC also informed that they will adjust the result of tenth anniversary upon completion of the remaining asset management process. Annual Report 2011 140 Financial Report

12.9 Finance Lease Receivables (Million Baht) Consolidated 2011 Portion due Over 1 Year Up to 1 year to 5 Years Over 5 Years Total Gross receivables from finance leases 26,745 47,211 663 74,619 Less Unearned interest income (6,159) Present value of minimum lease payments 68,460 Allowance for doubtful accounts (516) Total Finance Lease Receivables - net 67,944

(Million Baht) Consolidated 2010 Portion due Over 1 Year Up to 1 year to 5 Years Over 5 Years Total Gross receivables from finance leases 21,311 39,060 411 60,782 Less Unearned interest income (5,555) Present value of minimum lease payments 55,227 Allowance for doubtful accounts (456) Total Finance Lease Receivables - net 54,771

Annual Report 2011 Financial Report 141

13 TROUBLED DEBT RESTRUCTURING During the years ended 31 December 2011 and 2010, the Bank and its subsidiaries engaged in debt restructuring contracts as follows: (Million Baht) Consolidated The Bank 2011 2010 2011 2010 Total Total Total Total Outstanding Outstanding Outstanding Outstanding Debt Before Debt Before Debt Before Debt Before Cases Restructuring Cases Restructuring Cases Restructuring Cases Restructuring Debt restructuring contracts that incurred losses 391 14,887 401 14,443 385 14,868 397 14,424 Debt restructuring contracts that incurred no losses 40,700 34,264 35,849 32,546 40,667 34,189 35,817 32,053 Total 41,091 49,151 36,250 46,989 41,052 49,057 36,214 46,477

Losses on debt restructuring for the years ended 31 December 2011 and 2010 were as follows: (Million Baht) Consolidated 2011 Outstanding Debt Transferred Assets Loss on Before After Debt Types of Restructuring Cases Restructuring Restructuring Types Fair Value Restructuring Transfers of assets 12 556 - Cash, land, 216 340 premises and investments Changes of repayment conditions 350 11,725 11,458 - - 2,160 Debt restructuring in various forms 29 2,606 1,813 Cash, land, 792 1,074 Premises and investments Total 391 14,887 13,271 1,008 3,574

Annual Report 2011 142 Financial Report

(Million Baht) Consolidated 2010 Outstanding Debt Transferred Assets Loss on Before After Debt Types of Restructuring Cases Restructuring Restructuring Types Fair Value Restructuring Transfers of assets 6 116 - Cash, land, 102 14 premises and investments Changes of repayment conditions 357 10,032 9,981 - - 1,874 Debt restructuring in various forms 38 4,295 3,545 Cash, land, 750 702 premises and investments Total 401 14,443 13,526 852 2,590

(Million Baht) The Bank 2011 Outstanding Debt Transferred Assets Loss on Before After Debt Types of Restructuring Cases Restructuring Restructuring Types Fair Value Restructuring Transfers of assets 7 553 - Cash, land, 213 340 premises and investments Changes of repayment conditions 349 11,709 11,441 - - 2,159 Debt restructuring in various forms 29 2,606 1,813 Cash, land, 792 1,074 premises and investments Total 385 14,868 13,254 1,005 3,573

Annual Report 2011 Financial Report 143

(Million Baht) The Bank 2010 Outstanding Debt Transferred Assets Loss on Before After Debt Types of Restructuring Cases Restructuring Restructuring Types Fair Value Restructuring Transfers of assets 6 116 - Cash, land, 102 14 premises and investments Changes of repayment conditions 353 10,013 9,962 - - 1,873 Debt restructuring in various forms 38 4,295 3,545 Cash, land, 750 702 premises and investments Total 397 14,424 13,507 852 2,589

Annual Report 2011 144 Financial Report

The Bank and its subsidiaries measure the expected recoverable amounts of loans restructured by changing repayment conditions by using the present value of future cash flows discounted by the market rate. The terms of debt restructuring agreements with debts which were restructured by changing the repayment conditions and restructured in various other ways and which resulted in losses on debt restructuring during the years ended 31 December 2011 and 2010 are as follows: (Million Baht) Consolidated 2011 2010 Outstanding Debt Outstanding Debt Terms of debt restructuring Before After End of Before After End of agreements Cases Restructuring Restructuring Year Cases Restructuring Restructuring Year Less than 5 years 268 3,955 3,597 3,268 336 8,688 8,016 7,462 5 to 10 years 57 6,966 6,489 6,277 23 2,060 1,974 1,967 Over 10 years 54 3,410 3,185 3,091 36 3,579 3,536 3,455 Total 379 14,331 13,271 12,636 395 14,327 13,526 12,884 (Million Baht) The Bank 2011 2010 Outstanding Debt Outstanding Debt Terms of debt restructuring Before After End of Before After End of agreements Cases Restructuring Restructuring Year Cases Restructuring Restructuring Year Less than 5 years 267 3,939 3,580 3,252 332 8,669 7,997 7,455 5 to 10 years 57 6,966 6,489 6,277 23 2,060 1,974 1,967 Over 10 years 54 3,410 3,185 3,091 36 3,579 3,536 3,455 Total 378 14,315 13,254 12,620 391 14,308 13,507 12,877 Annual Report 2011 Financial Report 145

The Bank and its subsidiaries recognised interest income from debt restructuring for the years ended 31 December 2011 and 2010 as follows: (Million Baht) Consolidated The Bank 2011 2010 2011 2010 Debt restructuring contracts that incurred losses 708 824 708 824

As of 31 December 2011 and 2010, the Bank had commitments to extend additional loans to these borrowers as follows: (Million Baht) Consolidated and The Bank 2011 2010 Debt restructuring contracts that incurred losses 407 479

The Bank and its subsidiaries had outstanding balances on debtors which were restructured during 2011 and 2010 as follows: (Million Baht) Consolidated The Bank 2011 2010 2011 2010 Debt restructuring contracts that incurred losses 12,636 12,884 12,620 12,877 Debt restructuring contracts that incurred no losses 26,137 24,956 26,125 24,955 Total 38,773 37,840 38,745 37,832

As of 31 December 2011 and 2010, the Bank and its subsidiaries had outstanding balances relating to all restructured debtors which had been performing in accordance with debt restructuring agreements as follows: (Million Baht) Consolidated The Bank 2011 2010 2011 2010 Debt restructuring contracts that incurred losses 22,861 22,597 22,839 22,585 Debt restructuring contracts that incurred no losses 40,147 36,738 40,041 36,676 Total 63,008 59,335 62,880 59,261 Annual Report 2011 146 Financial Report

14 ALLOWANCE FOR DOUBTFUL ACCOUNTS The movements in the allowance for doubtful accounts during the years were as follows:

(Million Baht) Consolidated 2011 Allowances Allowances from from Special Sub- Doubtful Excess Securities Insurance Pass Mention Standard Doubtful of Loss Allowance Business Business Total Balance at the beginning of the year 3,733 108 1,447 3,089 12,605 11,346 - 117 32,445 Transferred from investments in receivables - - - - 1 - - - 1 Doubtful accounts (reversal) 605 216 1,646 (82) 251 2,039 5 (52) 4,628 Bad debt written off (1) - - - (3,911) - - - (3,912) Others - - - - 2,062 - - (22) 2,040 Balance at the end of the year 4,337 324 3,093 3,007 11,008 13,385 5 43 35,202

(Million Baht) Consolidated 2010 Allowances Special Sub- Doubtful Excess from Insurance Pass Mention Standard Doubtful of Loss Allowance Business Total Balance at the beginning of the year 2,829 79 3,061 3,020 11,261 9,141 135 29,526 Transferred from investments in receivables - - - - 7 - - 7 Doubtful accounts (reversal) 905 58 (1,614) 69 3,083 2,237 (26) 4,712 Bad debt written off (1) (29) - - (4,303) - - (4,333) Others - - - - 2,557 (32) 8 2,533 Balance at the end of the year 3,733 108 1,447 3,089 12,605 11,346 117 32,445 Annual Report 2011 Financial Report 147

(Million Baht) The Bank 2011 Special Sub- Doubtful Excess Pass Mention Standard Doubtful of Loss Allowance Total Balance at the beginning of the year 4,259 106 1,441 2,957 11,836 10,600 31,199 Doubtful accounts (reversal) 763 216 1,636 1 20 1,953 4,589 Bad debt written off - - - - (3,788) - (3,788) Others - - - - 2,160 - 2,160 Balance at the end of the year 5,022 322 3,077 2,958 10,228 12,553 34,160

(Million Baht) The Bank 2010 Special Sub- Doubtful Excess Pass Mention Standard Doubtful of Loss Allowance Total Balance at the beginning of the year 3,260 74 3,057 3,001 10,531 8,424 28,347 Doubtful accounts (reversal) 999 32 (1,616) (44) 2,877 2,176 4,424 Bad debt written off - - - - (4,137) - (4,137) Others - - - - 2,565 - 2,565 Balance at the end of the year 4,259 106 1,441 2,957 11,836 10,600 31,199

15 REVALUATION ALLOWANCE FOR DEBT RESTRUCTURING The movements in the revaluation allowance for debt restructuring during the years were as follows: (Million Baht) Consolidated The Bank 2011 2010 2011 2010 Balance at the beginning of the year 4,387 4,519 4,386 4,493 Increase 3,232 2,583 3,231 2,582 Amortisation to interest income (239) (326) (239) (326) Others (2,239) (2,389) (2,238) (2,363) Balance at the end of the year 5,141 4,387 5,140 4,386 Annual Report 2011 148 Financial Report

16 PROPERTIES FORECLOSED - NET Properties foreclosed as of 31 December 2011 and 2010 consisted of: (Million Baht) Consolidated 2011 Beginning Ending Type of Properties Foreclosed Balance Addition Disposal Balance 1. Assets acquired from debt repayment 1.1 Immovable assets 15,488 4,041 (4,487) 15,042* 1.2 Movable assets 38 84 (91) 31 Total 15,526 4,125 (4,578) 15,073 2. Others 405 28 (403) 30 Total Properties Foreclosed 15,931 4,153 (4,981) 15,103 Less Allowances for impairment (1,550) (596) 467 (1,679) Total Properties Foreclosed - net 14,381 3,557 (4,514) 13,424 * As of 31 December 2011, the value of immovable assets acquired from debt repayment was appraised by external appraisers and internal appraisers in the amount of Baht 10,471 million and Baht 4,571 million, respectively.

(Million Baht) Consolidated 2010 Beginning Ending Type of Properties Foreclosed Balance Addition Disposal Balance 1. Assets acquired from debt repayment 1.1 Immovable assets 16,106 4,538 (5,156) 15,488** 1.2 Movable assets 48 287 (297) 38 Total 16,154 4,825 (5,453) 15,526 2. Others 500 4 (99) 405 Total Properties Foreclosed 16,654 4,829 (5,552) 15,931 Less Allowances for impairment (1,695) (541) 686 (1,550) Total Properties Foreclosed - net 14,959 4,288 (4,866) 14,381 ** As of 31 December 2010, the value of immovable assets acquired from debt repayment was appraised by external appraisers and internal appraisers in the amount of Baht 11,254 million and Baht 4,234 million, respectively. Annual Report 2011 Financial Report 149

(Million Baht) The Bank 2011 Beginning Ending Type of Properties Foreclosed Balance Addition Disposal Balance 1. Assets acquired from debt repayment 1.1 Immovable assets 13,644 3,925 (3,988) 13,581* 1.2 Movable assets 27 - - 27 Total 13,671 3,925 (3,988) 13,608 2. Others 7 28 (7) 28 Total Properties Foreclosed 13,678 3,953 (3,995) 13,636 Less Allowances for impairment (1,285) (482) 352 (1,415) Total Properties Foreclosed - net 12,393 3,471 (3,643) 12,221 * As of 31 December 2011, the value of immovable assets acquired from debt repayment was appraised by external appraisers and internal appraisers in the amount of Baht 9,010 million and Baht 4,571 million, respectively. (Million Baht) The Bank 2010 Beginning Ending Type of Properties Foreclosed Balance Addition Disposal Balance 1. Assets acquired from debt repayment 1.1 Immovable assets 13,074 4,409 (3,839) 13,644** 1.2 Movable assets 28 - (1) 27 Total 13,102 4,409 (3,840) 13,671 2. Others 3 4 - 7 Total Properties Foreclosed 13,105 4,413 (3,840) 13,678 Less Allowances for impairment (1,227) (455) 397 (1,285) Total Properties Foreclosed - net 11,878 3,958 (3,443) 12,393 ** As of 31 December 2010, the value of immovable assets acquired from debt repayment was appraised by external appraisers and internal appraisers in the amount of Baht 9,410 million and Baht 4,234 million, respectively. Annual Report 2011 150 Financial Report

17 CLASSIFIED ASSETS As of 31 December 2011 and 2010, assets of the Bank and its subsidiaries, classified as investments, loans and accrued interest receivables (including financial institutions), properties foreclosed and other assets, were categorized by quality in compliance with the BoT’s regulations, taking into account analyses of each loan and appraisal of the financial standing of each borrower, as follows: (Million Baht) Consolidated 2011 Loans and Accrued Properties Investments Interest Receivables Foreclosed Other Assets Total Pass - 1,247,334 - - 1,247,334 Special Mention - 18,810 - - 18,810 Sub-Standard - 5,004 - - 5,004 Doubtful - 5,684 - - 5,684 Doubtful of Loss 3,204 21,234 625 1,328 26,391 Total 3,204 1,298,066 625 1,328 1,303,223

(Million Baht) Consolidated 2010 Loans and Accrued Properties Investments Interest Receivables Foreclosed Other Assets Total Pass - 1,084,795 - - 1,084,795 Special Mention - 23,233 - - 23,233 Sub-Standard - 3,821 - - 3,821 Doubtful - 7,104 - - 7,104 Doubtful of Loss 4,207 22,420 559 1,314 28,500 Total 4,207 1,141,373 559 1,314 1,147,453 Annual Report 2011 Financial Report 151

(Million Baht) The Bank 2011 Loans and Accrued Properties Investments Interest Receivables Foreclosed Other Assets Total Pass - 1,250,807 - - 1,250,807 Special Mention - 14,662 - - 14,662 Sub-Standard - 4,805 - - 4,805 Doubtful - 5,440 - - 5,440 Doubtful of Loss 3,198 19,789 403 1,324 24,714 Total 3,198 1,295,503 403 1,324 1,300,428

(Million Baht) The Bank 2010 Loans and Accrued Properties Investments Interest Receivables Foreclosed Other Assets Total Pass - 1,086,943 - - 1,086,943 Special Mention - 20,885 - - 20,885 Sub-Standard - 3,656 - - 3,656 Doubtful - 6,826 - - 6,826 Doubtful of Loss 4,201 20,714 356 1,314 26,585 Total 4,201 1,139,024 356 1,314 1,144,895

Annual Report 2011 152 Financial Report

Ending Balance 837 38,660

(Million Baht) Balance Beginning

Value Book 714 39,009 Ending Balance

- 6 Impairment Balance Beginning Allowance

- 6 Ending Balance

266 25,171

out Transfer - (3,518)

Disposal

- (127) Depreciation 62 3,407 Balance Change of Accumulated Depreciation Beginning

204 25,409 Ending Balance

1,103 63,837

out Transfer (193) (3,910)

Disposal (1) (134)

Increase

379 3,457 Balance Change of Cost PREMISES AND EQUIPMENT - NET Changes in premises and equipment for the years ended 31 December 2011 and 2010 are summarized as follows:

2011 Consolidated Beginning Building - 3,526 Land 3,526 3,542Cost ------(385) - (17) (385) - decrease 918 1 Appraisal increase Appraisal 3,542 - - 8,521 - Building - - Cost - - (73) - (122) (122) - - (4) (385) 5,786 - (385) - 6,104 - 377 decrease - 15,833 (77) - - (59) 9,785 9,729 Appraisal increase (49)Appraisal (104) 366 - - (45) 15,571 9,845 Equipment (58) - Others 8,463 25,611 14,927 (3,501) 14,042 2,711 2,677 (3,435) (133) 26,534 (127) - 6 - 6 11,60111,563 (37) 9,808 - 4,565 - 295 - - (24) - 4,836 - - - - 5,280 8,521 8,463 4,972 Total 64,424 18 Annual Report 2011 Financial Report 153

Ending Balance

714 39,009 (Million Baht) Balance Beginning Value Book 2,499 37,820 Ending Balance - 6

Decrease

aries for the years ended 31 December - (2) nd equipment with original costs of Baht Balance - 8 Beginning

Allowance Impairment Ending Balance

204 25,409 in (out) Transfer

(91) 130

Disposal (2) (805) Depreciation

62 3,096 Balance Beginning Change of Accumulated Depreciation 235 22,988 Ending Balance

918 64,424

out Transfer (4,004) (4,801)

Disposal (4) (817)

Increase

2,192 9,226 Balance

2011 and 2010 amounted to Baht 3,407 million and Baht 3,096 million, respectively. As of 31 December 2011 and 2010, premises a Baht 3,096 million, respectively. As 2011 and 2010 amounted to Baht 3,407 million Depreciation presented in premises and equipment expenses in the statements of comprehensive income of the Bank and its subsidi expenses in the statements of comprehensive Depreciation presented in premises and equipment 6,993 million and Baht 8,964 million, respectively, were fully depreciated but still in use. 2010 Total 60,816 Total Change of Cost Consolidated Appraisal increase 8,521 - - - 8,521 ------8,521 8,521 8,521 - - - - 8,521 - - 8,521 - - - - - (385) (385) - - - - (385) Land 3,542 - (385) - - - 3,542 - increase - Cost - - 3,536 2,734 decrease (5) Appraisal - 4,565 5,280 - - - - (4) - - 11 4,268 - - 301 5,786 - - 5,584 9,785 9,845 - Appraisal - 339 3,536 - - 9,852 - 8,517 (7) 5,073 - (4) 378 15,571 Building - Cost - (122) increase (70) (122) (40) - - - (3) (11) (73) Appraisal decrease 2,032 - - (49) Appraisal (52) - 13,590 Equipment 14,927(114) 13,482 (799) 2,358 26,534 8 Others (745) (802) (2) 4,991 11,601 23,090 9,600 6 Beginning Annual Report 2011 154 Financial Report

Ending Balance 350 32,927

(Million Baht) Balance Beginning Value Book

449 33,371 Ending Balance

- 6 Impairment Balance - - 8,809 8,785 - 10,815 8,809 - 3,882 - 4,052 10,895 - - - (45) 6 (49) 6 - 6 Beginning Allowance

) 0 8 9 0

Ending Balance

- 22,07

out Transfer - (2,666)

Disposal

- (115) Depreciation - 2,844 Balance Beginning Change of Accumulated Depreciation - 22,007 Ending Balance

350 55,003

out Transfer

(164) (3,092)

Disposal - (120)

Increase

65 2,831 Balance Change of Cost

2011 Total 55,384 Land (385) - (385) - - 3,033 (385) ------3,050 - - 3,033 Land (385) - - Cost - - (17) decrease - - Appraisal Appraisal increase 3,050 6,550 Building - Cost - 325 4,764 - 13,573 13,815 319 - (83) 5,03 (58) (53) 6,492 ------6,550 6,492

The Bank The Others 449 - (122) decrease Appraisal increase - Appraisal 8,467 - Equipment (122) (73) - Others (4) - - (77 2,441 23,802 23,390 - (120) 12,901 (2,733) (2,589) 2,372 12,56 (115) (37) 8,430 4,415 157 - (24) 4,54 Beginning

Annual Report 2011 Financial Report 155

Ending Balance

449 33,371 (Million Baht) Balance Beginning Book Value

2,174 32,442 Ending Balance

- 6

Decrease - (2) nded 31 December 2011 and 2010 - 8 th original costs of Baht 6,182 million Balance Beginning Allowance Impairment Ending Balance

- 22,007 in (out) Transfer - 260

Disposal - (732) Depreciation - 2,545 Balance Beginning Change of Accumulated Depreciation - 19,934 Ending Balance 449 55,384

out Transfer (3,881) (4,620)

Disposal - (738)

Increase

2,156 8,358 Balance Change of Cost

amounted to Baht 2,844 million and Baht 2,545 million, respectively. As of 31 December 2011 and 2010 premises equipment wi million, respectively. As of 31 December amounted to Baht 2,844 million and 2,545 and Baht 7,536 million, respectively, were fully depreciated but still in use. Depreciation presented in premises and equipment expenses in the statements of comprehensive income of the Bank for the years e income of the Bank for expenses in the statements of comprehensive Depreciation presented in premises and equipment Building 10,895 8,838 6 (2) 12,901 8 - (81) 6,550 - 6,550 - - - - 6,550 - Land (732) - - - 6,550 - 2,174 (385) - Cost (385) - increase - - - 2,089 - Appraisal 4,052 - 4,415decrease (385) - 11,625 - - (4) - 4,257 162 4,217 - - - (385) Appraisal - - - 8,474 3,050 - - 8,467 3,050 - (7) - - 8,809 4,764 23,802 Building - 3,050 - (70) - 345 - - 8,050 - - - - (3) 4,122 (122) - 297 (705)Cost (73) - (122) 3,050 - increase - - - - 13,573 - (49) Appraisal - - decrease (52) (27) (738) 1,428 Appraisal 12,172 4,774 Equipment 20,471 Others

Beginning The Bank The Total 52,384 Total 2010

Annual Report 2011 156 Financial Report

Ending Balance 26 18,805 (Million Baht)

Balance Beginning Value Book

19 16,614 Ending Balance

- 256 Impairment Balance Beginning Allowance

- - Ending Balance 1 5,155

Transfer out

- (1,815) Amortisation

1 1,117 Balance Beginning Change of Accumulated Depreciation - 5,853 Ending Balance 27 24,216

Transfer out - (1,852) Increase

8 3,601 Balance Change of Cost GOODWILL AND OTHER INTANGIBLE ASSETS - NET Changes in goodwill and other intangible assets for the years ended 31 December 2011 2010 are summarized as follows:

2011 Others 19 4,884 - 14,990 (1,815) 12,8061,116 256 5,583 20,130 (1,852) software - 3,593 - - purchased Application 18,389 270 - - 270 - - - 270 270 Business Goodwill Others - - 3,789 - - - - 3,789 3,789 3,789 - -

Consolidated Beginning Total 22,467 19 Annual Report 2011 Financial Report 157

Ending Balance (Million Baht)

19 16,614 , intangible assets with Balance Beginning diaries for the years ended diaries for the

Value Book 16 14,043 Ending Balance

- 5,853

Transfer out - (125)

Amortisation - 1,001 Balance Beginning - 4,977 Change of Accumulated Amortisation Ending Balance 19 22,467

Transfer out - (318) Increase 3 3,765 Balance 31 December 2011 and 2010 amounted to Baht 1,117 million and Baht 1,001 million, respectively. As of 31 December 2011 and 2010 respectively. As million and Baht 1,001 million, 31 December 2011 and 2010 amounted to Baht 1,117 original costs of Baht 973 million and 2,382 million, respectively, were fully amortised but still in use. Amortisation presented in others - other operating expenses in the statements of comprehensive income of the Bank and its subsi the statements of comprehensive income Amortisation presented in others - other operating expenses Beginning Total 19,020 2010 Consolidated Change of Cost Goodwill 3,789 - - 3,789 - - - - 3,789 3,789 3,789 - - - - 3,789 - - 16 3,789 software Application 4,734 14,945 (318) 18,389 3,762 Business purchased 974 (125) 5,583 Goodwill 10,211 12,806 Others 270 - - 270 243 27 - 270 27 - Annual Report 2011 158 Financial Report

Ending Balance (Million Baht) 4 14,851

Balance Beginning

Value Book

- 12,805 Ending Balance Ending Balance

(Million Baht)

12,805 12,805

- 256 with original costs of Baht ended 31 December 2011 Balance Beginning Balance Impairment Allowance Beginning Value Book

10,123 10,123 - - Ending Ending Balance Balance

1 4,587 5,325 5,325

out out

Transfer Transfer

(224) (224) - (1,820)

Amortisation Amortisation 931 931 1 1,082 Balance Balance Beginning Beginning Change of Accumulated Depreciation Change of Accumulated Amortisation

4,618 4,618 - 5,325 18,130 Ending Ending Balance Balance

5 19,694 18,130

out out Transfer Transfer

- (1,924) (318) (318) 3,707 Increase Increase 3,707 5 3,488 Balance Balance 18,130 3,483 - (1,924) 19,689 18,130 5,325 1,081 (1,820) 4,586 - 256 12,805 14,847

Beginning Beginning Change of Cost 2011 Change of Cost Total 14,741 The Bank The Application software Total Others Application software 14,741 The Bank The 2010 and 2010 amounted to Baht 1,082 million and Baht 931 million, respectively. As of 31 December 2011 and 2010, intangible assets As of 931 million, respectively. million and Baht and 2010 amounted to Baht 1,082 Amortisation presented in others - other operating expenses in the statements of comprehensive income of the Bank for years expenses in the statements of comprehensive Amortisation presented in others - other operating 791 million and Baht 2,208 million, respectively, were fully amortised but still in use. Annual Report 2011 Financial Report 159

20 DEFERRED TAX ASSETS AND DEFERRED TAX LIABILITIES Deferred tax assets and liabilities as of 31 December 2011 and 2010 as follows:

(Million Baht) Consolidated The Bank 2011 2010 2011 2010 Deferred tax assets 2,464 3,582 2,310 3,524 Deferred tax liabilities (1,063) (1,777) - - Net 1,401 1,805 2,310 3,524 Movements in total deferred tax assets and liabilities during the year were as follows: (Million Baht) Consolidated Charged / credited to: As of Other As of 1 January comprehensive 31 December 2011 Profit or loss income Others 2011 Deferred tax assets Investments 544 (337) - - 207 Investments in subsidiaries and associated companies 577 (193) - - 384 Loans and accrued interest receivables 994 (445) - (2) 547 Properties foreclosed 402 (88) - 1 315 Premises and equipment 6 3 - (1) 8 Provisions 4,202 (1,123) 60 (1) 3,138 Life policy reserve 660 (74) - (11) 575 Others 541 (80) - 8 469 Total 7,926 (2,337) 60 (6) 5,643 Deferred tax liabilities Investments 1,882 (117) (298) - 1,467 Premises and equipment 4,050 (460) (1,032) - 2,558 Others 189 28 - - 217 Total 6,121 (549) (1,330) - 4,242 Net 1,805 (1,788) 1,390 (6) 1,401

Annual Report 2011 160 Financial Report

(Million Baht) Consolidated Charged / credited to: As of Other Charged As of 1 January comprehensive directly to 31 December 2010 Profit or loss income equity 2010 Deferred tax assets Investments 524 20 - - 544 Investments in subsidiaries and associated companies 577 - - - 577 Loans and accrued interest receivables 1,074 (80) - - 994 Properties foreclosed 386 16 - - 402 Premises and equipment 5 1 - - 6 Provisions 3,991 211 - - 4,202 Life policy reserve 468 192 - - 660 Others 454 87 - - 541 Total 7,479 447 - - 7,926 Deferred tax liabilities Investments 1,106 (48) 824 - 1,882 Premises and equipment 4,098 1 - (49) 4,050 Others 94 95 - - 189 Total 5,298 48 824 (49) 6,121 Net 2,181 399 (824) 49 1,805

Annual Report 2011 Financial Report 161

(Million Baht) The Bank Charged / credited to: As of Other As of 1 January comprehensive 31 December 2011 Profit or loss income 2011 Deferred tax assets Investments 506 (324) - 182 Investments in subsidiaries and associated companies 574 (192) - 382 Loans and accrued interest receivables 915 (408) - 507 Properties foreclosed 385 (89) - 296 Provisions 4,130 (1,121) 60 3,069 Others 304 (41) - 263 Total 6,814 (2,175) 60 4,699 Deferred tax liabilities Investments 242 69 137 448 Premises and equipment 3,048 (75) (1,032) 1,941 Total 3,290 (6) (895) 2,389 Net 3,524 (2,169) 955 2,310

Annual Report 2011 162 Financial Report

(Million Baht) The Bank Charged / credited to: As of Other Charged As of 1 January comprehensive directly to 31 December 2010 Profit or loss income equity 2010 Deferred tax assets Investments 486 20 - - 506 Investments in subsidiaries and associated companies 574 - - - 574 Loans and accrued interest receivables 987 (72) - - 915 Properties foreclosed 368 17 - - 385 Provisions 3,928 202 - - 4,130 Others 262 42 - - 304 Total 6,605 209 - - 6,814 Deferred tax liabilities Investments 222 (5) 25 - 242 Premises and equipment 3,096 1 - (49) 3,048 Total 3,318 (4) 25 (49) 3,290 Net 3,287 213 (25) 49 3,524

See Note 43 for the amounts recognised in the statements of comprehensive income. Annual Report 2011 Financial Report 163

21 DEPOSITS Deposits were classified as of 31 December 2011 and 2010 as follows: 21.1 Classified by Type of Deposits (Million Baht) Consolidated The Bank 2011 2010 2011 2010 Current 66,618 60,776 66,833 61,698 Savings 686,716 687,502 688,037 688,650 Term - Less than 6 months 146,434 156,870 146,529 156,993 - 6 months and less than 1 year 116,571 38,235 116,571 38,235 - 1 year and over 1 year 225,890 156,653 225,890 156,653 Total 1,242,229 1,100,036 1,243,860 1,102,229

21.2 Classified by Currencies and Residency of Depositors (Million Baht) Consolidated 2011 2010 Domestic Foreign Total Domestic Foreign Total Baht 1,180,730 42,922 1,223,652 1,052,512 32,437 1,084,949 US Dollars 13,891 617 14,508 10,704 1,159 11,863 Other currencies 2,720 1,349 4,069 2,584 640 3,224 Total 1,197,341 44,888 1,242,229 1,065,800 34,236 1,100,036

(Million Baht) The Bank 2011 2010 Domestic Foreign Total Domestic Foreign Total Baht 1,182,361 42,922 1,225,283 1,054,705 32,437 1,087,142 US Dollars 13,891 617 14,508 10,704 1,159 11,863 Other currencies 2,720 1,349 4,069 2,584 640 3,224 Total 1,198,972 44,888 1,243,860 1,067,993 34,236 1,102,229 Annual Report 2011 164 Financial Report

22 INTERBANK AND MONEY MARKET ITEMS (LIABILITIES) Interbank and money market items (liabilities) as of 31 December 2011 and 2010 consisted of: (Million Baht) Consolidated 2011 2010 At call Term Total At call Term Total 1. Domestic The BoT and FIDF - 1,900 1,900 - 839 839 Commercial banks 4,834 34,847 39,681 1,619 21,150 22,769 Specialized financial institutions 192 100 292 178 - 178 Other financial institutions 2,162 147 2,309 2,685 1,195 3,880 Total Domestic 7,188 36,994 44,182 4,482 23,184 27,666 2. Foreign US Dollars 16 30 46 19 3 22 Japanese Yen 206 7,477 7,683 18 5,065 5,083 Other currencies 542 887 1,429 293 - 293 Total Foreign 764 8,394 9,158 330 5,068 5,398 Total Domestic and Foreign 7,952 45,388 53,340 4,812 28,252 33,064

Annual Report 2011 Financial Report 165

(Million Baht) The Bank 2011 2010 At call Term Total At call Term Total 1. Domestic The BoT and FIDF - 1,900 1,900 - 839 839 Commercial banks 4,834 34,847 39,681 1,619 21,150 22,769 Specialized financial institutions 206 100 306 192 - 192 Other financial institutions 5,584 147 5,731 4,604 1,195 5,799 Total Domestic 10,624 36,994 47,618 6,415 23,184 29,599 2. Foreign US Dollars 16 30 46 19 3 22 Japanese Yen 206 7,477 7,683 18 5,065 5,083 Other currencies 542 887 1,429 293 - 293 Total Foreign 764 8,394 9,158 330 5,068 5,398 Total Domestic and Foreign 11,388 45,388 56,776 6,745 28,252 34,997

Annual Report 2011 166 Financial Report

23 FINANCIAL LIABILITIES DESIGNATED AT FAIR VALUE THROUGH PROFIT OR LOSS Financial liabilities designated at fair value through profit or loss as of 31 December 2011 and 2010 consisted of: (Million Baht) Consolidated and The Bank 2011 20102011 2010 Borrowing 2,113 6,1562,113 6,156 Proportion of transactions classified by the contract parties based on the amount of the contract: as of 31 December 2011 and 2010 consisted of: Consolidated and The Bank Consolidated and The 2011Bank 2010 Contract parties 2011 2010 Proportion (%) Financial institutions - 11 Outsiders 100 89 Total 100 100

24 DEBTS ISSUED AND BORROWINGS Debts issued and borrowings as of 31 December 2011 and 2010 consisted of: (Million Baht) Consolidated 2011 2010 Domestic Foreign Total Domestic Foreign Total Debentures 3,000 - 3,000 6,135 - 6,135 Subordinated Debentures - 5,796 5,796 - 5,511 5,511 Subordinated Debentures KASIKORNBANK PCL No.1/2008 17,000 - 17,000 17,000 - 17,000 Subordinated Debentures KASIKORNBANK PCL No.1/2009 600 - 600 600 - 600 Subordinated Debentures KASIKORNBANK PCL No.1/2010 7,500 - 7,500 7,500 - 7,500 Bills of Exchange 36,072 - 36,072 51,648 - 51,648 Others 335 - 335 538 - 538 Total 64,507 5,796 70,303 83,421 5,511 88,932

Annual Report 2011 Financial Report 167

(Million Baht) Consolidated 2011 Currency Maturity Date Interest rate Amount Debentures Baht 2012 3.20% - 3.40% 3,000 Subordinated Debentures US Dollar 2016 8.25% 5,796 Subordinated Debentures KASIKORNBANK PCL No.1/2008 Baht 2018 5.25% - 6.50% 17,000 Subordinated Debentures KASIKORNBANK PCL No.1/2009 Baht 2019 4.85% - 5.75% 600 Subordinated Debentures KASIKORNBANK PCL No.1/2010 Baht 2020 4.50% 7,500 Bills of Exchange Baht 2024 1.75% - 6.00% 36,072 Others Baht 2018 0.00% - 0.50% 335 Total 70,303

(Million Baht) Consolidated 2010 Currency Maturity Date Interest rate Amount Debentures Baht 2011 1.77% - 1.91% 6,135 Subordinated Debentures US Dollar 2016 8.25% 5,511 Subordinated Debentures KASIKORNBANK PCL No.1/2008 Baht 2018 5.25% - 6.50% 17,000 Subordinated Debentures KASIKORNBANK PCL No.1/2009 Baht 2019 4.85% - 5.75% 600 Subordinated Debentures KASIKORNBANK PCL No.1/2010 Baht 2020 4.50% 7,500 Bills of Exchange Baht 2013 0.90% - 3.20% 51,648 Others Baht 2017 0.00% - 0.50% 538 Total 88,932 Annual Report 2011 168 Financial Report

(Million Baht) The Bank 2011 2010 Domestic Foreign Total Domestic Foreign Total Debentures 3,000 - 3,000 6,135 - 6,135 Subordinated Debentures - 5,796 5,796 - 5,511 5,511 Subordinated Debentures KASIKORNBANK PCL No.1/2008 17,000 - 17,000 17,000 - 17,000 Subordinated Debentures KASIKORNBANK PCL No.1/2009 600 - 600 600 - 600 Subordinated Debentures KASIKORNBANK PCL No.1/2010 7,500 - 7,500 7,500 - 7,500 Bills of Exchange 36,072 - 36,072 51,648 - 51,648 Others 959 - 959 1,148 - 1,148 Total 65,131 5,796 70,927 84,031 5,511 89,542

(Million Baht) The Bank 2011 Currency Maturity Date Interest rate Amount Debentures Baht 2012 3.20% - 3.40% 3,000 Subordinated Debentures US Dollar 2016 8.25% 5,796 Subordinated Debentures KASIKORNBANK PCL No.1/2008 Baht 2018 5.25% - 6.50% 17,000 Subordinated Debentures KASIKORNBANK PCL No.1/2009 Baht 2019 4.85% - 5.75% 600 Subordinated Debentures KASIKORNBANK PCL No.1/2010 Baht 2020 4.50% 7,500 Bills of Exchange Baht 2024 1.75% - 6.00% 36,072 Others Baht 2018 0.00% - 3.25% 959 Total 70,927 Annual Report 2011 Financial Report 169

(Million Baht) The Bank 2010 Currency Maturity Date Interest rate Amount Debentures Baht 2011 1.77% - 1.91% 6,135 Subordinated Debentures US Dollar 2016 8.25% 5,511 Subordinated Debentures KASIKORNBANK PCL No.1/2008 Baht 2018 5.25% - 6.50% 17,000 Subordinated Debentures KASIKORNBANK PCL No.1/2009 Baht 2019 4.85% - 5.75% 600 Subordinated Debentures KASIKORNBANK PCL No.1/2010 Baht 2020 4.50% 7,500 Bills of Exchange Baht 2013 0.90% - 3.20% 51,648 Others Baht 2017 0.00% - 2.00% 1,148 Total 89,542

As of 31 December 2011 and 2010, the Bank has debts issued and borrowings with embedded derivative that are not designated at fair value through profit or loss amounted to Baht 1,418 million and Baht 5,764 million, respectively.

SUBORDINATED DEBENTURES The Board of Directors in its meeting on 25 July 1996 approved the issuance of USD 200 million of unsecured Subordinated Debentures, having a face value of USD 100,000 each, with a twenty-year maturity offered at a price of USD 98,997 each on 21 August 1996 and carrying an 8.25 percent coupon rate payable semi-annually. The Bank repurchased USD 16.69 million of such Subordinated Debentures in accordance with the Board of Directors resolution, which was approved on 28 May 2009. The settlement was completed on 2 July 2009. KBank Subordinated Debentures No.1/2008, KBank Subordinated Debentures No.1/2009 and Kbank Subordinated Debentures No.1/2010 On 25 September 2008, the Board of Directors in its meeting approved the issuance of these Unsubordinated and/or Subordinated Debentures in name certificate, unconvertible and without security in order to raise long- term funding at a reasonable cost, to efficiently manage the interest rate and liquidity risks, as well as to strengthen the status of the Bank’s tier two capital funds. The Bank issued and offered the Subordinated Debentures as follows: Annual Report 2011 170 Financial Report

On 19 December 2008, the Bank issued the Subordinated Debentures of KASIKORNBANK PUBLIC COMPANY LIMITED No.1/2008 Due A.D. 2018, which the Bank may redeem the debenture before maturity, in the amount of Baht 17,000 million, with a ten-year maturity. The debentures bear interest at the fixed interest rate for the first three years of 5.25 % per annum, the fixed interest rate for the next four years of 5.75 % per annum and the fixed interest rate for the final three years of 6.50 % per annum. Interest is payable quarterly. On 17 July 2009, the Bank issued the Subordinated Debentures of KASIKORNBANK PUBLIC COMPANY LIMITED No.1/2009 Due A.D.2019, which the Bank may redeem the debenture before maturity, in the amount of Baht 600 million, with a ten-year maturity. The debentures bear interest at the fixed interest rate for the first three years of 4.85 % per annum, the fixed interest rate for the next four years of 5.25 % per annum and the fixed interest rate for the final three years of 5.75 % per annum. Interest is payable quarterly. On 29 April 2010, the Board of Directors in its meeting approved the issuance of these Unsubordinated and/or Subordinated Debentures in name certificate, unconvertible and without security in order to raise long-term funding at a reasonable cost. The Bank issued and offered the Subordinated Debentures as follows: On 22 June 2010, the Bank issued the Subordinated Debentures of KASIKORNBANK PUBLIC COMPANY LIMITED No.1/2010 Due A.D. 2020, which the Bank may redeem the debenture before maturity, in the amount of Baht 7,500 million, with a ten-year maturity. The debentures bear interest at the fixed interest of 4.50 % per annum. Interest is payable quarterly. The Bank may redeem KBank Subordinated Debentures No.1/2008, KBank Subordinated Debentures No.1/2009 and KBank Subordinated Debentures No.1/2010 before maturity under the following criteria: (A) Before the fifth anniversary of the issue date, under a notice by the Bank of Thailand that (1) The debenture will no longer be classified as a financial instrument, which can be counted as Tier two capital fund of the Bank; or (2) The debenture can be counted as Tier two capital fund, at the proportion less than 50 percent of Tier one capital fund of the Bank; or (B) On the fifth anniversary of the issue date or any subsequent interest payment date after the fifth anniversary of the issue date; or (C) The Bank is under court order for complete receivership, or for business rehabilitation or for bankruptcy under the Bankruptcy Act or other applicable laws or under the Bank’s liquidation process; or (D) If the Bank can demonstrate that interest payments under the Debentures are no longer, or will no longer be, deductible as an expense for income tax purposes; or (E) In any other cases as may be later stipulated by the Bank of Thailand. Annual Report 2011 Financial Report 171

25 EMPLOYEE RETIREMENT BENEFITS The Bank and its subsidiaries have been assessing liability to pay for long-term employee benefits by using Projected Unit Credit method as follows: (Million Baht) Consolidated The Bank 2011 2010 2011 2010 Balance at the beginning of the year 9,046 8,766 8,776 8,513 Current service costs* 1,033 443 980 418 Interest cost* 464 392 450 380 Acturial losses in other comprehensive income 303 - 300 - Benefits paid (968) (555) (965) (535) Balance at the end of the year 9,878 9,046 9,541 8,776 * Presented by employee’s expenses in statements of comprehensive income

Acturial gains and losses recognised in other comprehensive income for the years ended 31 December 2011 and 2010 consisted of: (Million Baht) Consolidated The Bank 2011 2010 2011 2010 Included in retained earnings: At 1 January - - - - Recognised during the year 303 - 300 - At 31 December 303 - 300 -

Principle actuarial assumptions are as follows: 2011 / 2010 2011 / 2010 Discount rate 1.06% - 4.85% 1.06% - 4.85% Average salary increase 4% - 6% 4% - 6% Average turnover 3% - 12% 3% - 12% Normal retirement age 55 - 60 years 55 - 60 years Annual Report 2011 172 Financial Report

26 SHARE CAPITAL AND EARNINGS PER SHARE The calculation of the consolidated and the Bank-only basic earnings per share for the years ended 31 December 2011 was based on profit attributable to ordinary shareholders of Baht 24,226 million and Baht 22,159 million, respectively (2010: Baht 20,047 million and Baht 18,615 million, respectively) and the weighted average number of ordinary shares outstanding during the year ended 31 December 2011 of 2,393,260,193 shares (2010: 2,393,260,193 shares).

27 RESERVES Section 116 of the Public Companies Act B.E. 2535 requires that the Bank shall allocate not less than 5 percent of its annual net profit, less any accumulated losses brought forward, to a reserve account (“legal reserve”), until this account reaches an amount not less than 10% of the registered authorized capital. In addition, The provisions of the Civil and Commercial Code of Thailand require that subsidiaries shall allocate not less than 5 percent of their annual net profit each time a dividend is declared, to a reserve account (“legal reserve”) until the reserve reaches 10 percent of authorized share capital. The legal reserve is not available for dividend distribution.

28 DIVIDEND PAYMENTS On 25 August 2011, the Board of Directors Meeting of the Bank approved to pay interim dividends from the six-month operating results of 2011 at the rate of Baht 0.50 per share, totaling Baht 1,197 million, which was paid on 22 September 2011. On 7 April 2011, the Annual General Meeting of Shareholders of the Bank approved to pay dividend from the operating results of 2010 at the rate of Baht 2.50 per share, totaling Baht 5,983 million. The interim dividend was paid at the rate of Baht 0.50 per share, totaling Baht 1,197 million on 23 September 2010 and the remaining dividend was paid at the rate of Baht 2.00 per share, totaling Baht 4,786 million, on 29 April 2011. On 26 August 2010, the Board of Directors Meeting of the Bank approved to pay interim dividends from the six-month operating results of 2010 at the rate of Baht 0.50 per share, totaling Baht 1,197 million, which was paid on 23 September 2010. On 7 April 2010, the Annual General Meeting of Shareholders of the Bank approved to pay dividend from the operating results of 2009 at the rate of Baht 2.50 per share, totaling Baht 5,983 million. The interim dividend was paid at the rate of Baht 0.50 per share, totaling Baht 1,197 million on 24 September 2009 and the remaining dividend was paid at the rate of Baht 2.00 per share, totaling Baht 4,786 million, on 30 April 2010. Annual Report 2011 Financial Report 173

29 ASSETS PLEDGED AS COLLATERAL Assets pledged as collateral as of 31 December 2011 and 2010 consisted of: (Million Baht) Consolidated The Bank 2011 2010 2011 2010 Deposits 3,154 916 3,135 827 Government bonds 45,946 34,277 27,825 20,210 State enterprises bonds 295 297 185 187 Total 49,395 35,490 31,145 21,224 The Bank has pledged these assets as collateral for derivatives, for electricity consumption, for court collateral and for repurchase agreements.

30 CONTINGENT LIABILITIES AND COMMITMENTS Contingent liabilities and commitments as of 31 December 2011 and 2010 consisted of: (Million Baht) Consolidated The Bank 2011 2010 2011 2010 Avals to bills 7,944 3,802 7,944 3,802 Guarantees of loans 186 159 186 159 Liability under unmatured import bills 8,697 8,418 8,697 8,418 Letter of credit 26,962 24,496 26,962 24,496 Other contingencies - Guarantees of selling instruments or securities - 1,500 - 1,500 - Unused credit line of overdraft 176,461 161,168 176,461 161,168 - Other guarantees 143,865 126,839 143,820 126,813 - Others 556,925 477,847 556,904 477,813 Total 921,040 804,229 920,974 804,169

Annual Report 2011 174 Financial Report

Under normal business operations, the Bank is a defendant in various litigation against the Bank. These include cases of wrongful acts brought against the Bank, with total claims amounting to Baht 7,728 million and Baht 7,663 million as of 31 December 2011 and 2010, respectively. The Management believes that any liability resulting from this litigation will not be material to the Bank’s financial position or on the results of its operations. One of the civil cases against the Bank is a case which was further appealed to the Court of Final Appeal of Hong Kong under Common Law. In this case, the Liquidators of Akai Holdings Limited (“Akai’) under a bankruptcy case filed a civil lawsuit against the Bank, with total claim for damages of USD 52.81 Million plus interest, alleging that a Loan Agreement and a Share Pledge Agreement entered into during 1998 between the Bank and Akai were void and that the Bank is required to compensate Akai for damages resulting from enforcing the sale of shares under the Share Pledge Agreement. The Court of First Instance of Hong Kong dismissed the Liquidators’ entire claim. The Liquidators appealed to the Court of Appeal which overturned the Court of First Instance decision ordering the Bank to pay damages. The Bank appealed to the Court of Final Appeal. On 8 November 2010, the Court of Final Appeal awarded in favour of Akai by ordering the Bank to pay damages of USD 22.54 million together with interest, at the rate of 1% over USD LIBOR, total amount of USD 34.25 million. The Bank already paid such damages in 2010. As of 31 December 2011 and 2010, Muang Thai Life Assurance Company Limited has been sued as insurer, with claims amounting to approximately Baht 161 million and Baht 133 million, respectively. The Management believes that any liability resulting from this litigation will not be material to the consolidated financial statements. Annual Report 2011 Financial Report 175

31 RELATED PARTY TRANSACTIONS AND BALANCES 31.1 Loans and contingencies made to officers(1) and to business entities where the Bank and its subsidiaries, their directors or officers, hold 20%(2) or more of their paid-up capital, in which market price as charged as with other normal business, are summarized as follows: (Million Baht) Consolidated 31 December 2011 31 December 2010 Loans 1. Officers 30 21 2. Business entities where the Bank and subsidiaries, their directors or officers, hold 20% or more of the paid - up capital(2) 126 982 Total 156 1,003 Contingencies 1. Officers - - 2. Business entities where the Bank and subsidiaries, their directors or officers, hold 20% or more of the paid - up capital(2) 13 13 Total 13 13

(Million Baht) The Bank 31 December 2011 31 December 2010 Loans 1. Officers 18 21 2. Business entities where the Bank, its directors or officers, hold 20% or more of the paid - up capital(2) 69,446 57,012 Total 69,464 57,033 Contingencies 1. Officers - - 2. Business entities where the Bank, its directors or officers, hold 20% or more of the paid - up capital(2) 194 89 Total 194 89 (1) Officers mean management who holds the title of at least First Senior Vice President including Department Head-Financial Accounting Management Department and Department Head-Financial Planning Department. (2) Related business entities: 2010 mean business entities where the Bank, subsidiaries and any related parties hold 10% or more of the paid-up capital. 2011 mean business entities where the Bank, subsidiaries and any related parties hold 20% or more of the paid-up capital. Annual Report 2011 176 Financial Report

31.2 Related Parties Relationships between the Bank and other business entities(1) where control exists for the years ended 31 December 2011 and 2010 are explained in Note 11.1

31.3 Significant transactions occurring between the Bank and Phethai Asset Management Company Limited are summarized as follows:

(Million Baht) The Bank 31 December 2011 31 December 2010 Deposits 55 804 Other income 7 10

Income and expenses shared between the Bank and Phethai Asset Management Company Limited are charged at cost, except for fee income, which is charged at market price. The Bank has provided an allowance for doubtful accounts for Phethai Asset Management Company Limited using the same method as for general customers and in accordance with the BoT’s regulations.

(1) Related parties 2010 mean spouses and children under age of 20 years old. 2011 mean spouses, children, father, mother, siblings and children’s spouses.

31.4 Additional transactions occurring between the Bank and related business entities, which are charged at market price as with other normal business or the price as stipulated in the agreement, are as follows: 31.4.1 Assets, liabilities and contingencies between the Bank, its subsidiaries and associated companies excluding Phethai Asset Management Company Limited as of 31 December 2011 and 2010 are summarized as follows: Annual Report 2011 Financial Report 177

(Million Baht) Consolidated The Bank 2011 2010 2011 2010 Interbank and Money Market Items (Assets) Subsidiary - KASIKORN SECURITIES PCL - - - 265 Loans Subsidiaries - KASIKORN LEASING CO., LTD. - - 61,853 52,782 - KASIKORN FACTORY & EQUIPMENT CO., LTD. - - 7,462 3,242 Other Assets Subsidiaries - Muang Thai Life Assurance Co., Ltd. - - 235 190 - KASIKORN ASSET MANAGEMENT CO., LTD. - - 107 82 - KASIKORN SECURITIES PCL - - 19 32 - KASIKORN LEASING CO., LTD. - - 15 11 - Processing Center Co., Ltd. 10 - 10 - - Progress Land and Buildings Co., Ltd. - - - 319 Deposits Subsidiaries - KASIKORN ASSET MANAGEMENT CO., LTD. - - 1,338 1,236 - KASIKORN LEASING CO., LTD. - - 360 524 - Progress Gunpai Co., Ltd. - - 182 196 - Progress Land and Buildings Co., Ltd. - - 176 2 - Muangthai Group Holding Co., Ltd. - - 145 112 - KASIKORN FACTORY & EQUIPMENT CO., LTD. - - 100 122 - K-SME Venture Capital Co., Ltd. - - 88 68 - Progress Plus Co., Ltd. - - 84 86 - Progress Appraisal Co., Ltd. - - 71 78 - Progress Service Co., Ltd. - - 69 63 - Progress Service Support Co., Ltd. - - 56 49 - Progress Software Co., Ltd. - - 52 63 - KASIKORN RESEARCH CENTER CO., LTD. - - 43 42 - Progress Facilities Management Co., Ltd. - - 40 40 - Progress HR Co., Ltd. - - 33 40 Annual Report 2011 178 Financial Report

(Million Baht) Consolidated The Bank 2011 2010 2011 2010 - Progress Storage Co., Ltd. - - - - 26 26 3232 - Progress Management Co., Ltd. - - - - 23 23 3131 - Progress Multi Insurance Broker Co., Ltd. - - - - 17 17 - - - Progress Training Co., Ltd. - - - - 11 11 1414 Associated Company - Processing Center Co., Ltd. 1818 2323 18 18 2323 Interbank and Money Market Items (Liabilities) Subsidiaries - KASIKORN SECURITIES PCL - - - - 2,898 2,898 1,471 1,471 - Muang Thai Life Assurance Co., Ltd. - - - - 959959 721721 Borrowings Subsidiary - KASIKORN ASSET MANAGEMENT CO., LTD. - - - - 624624 510510 Other Liabilities Subsidiaries - KASIKORN LEASING CO., LTD. - - - - 859859 730730 - Progress Software Co., Ltd. - - - - 208208 215215 - Progress HR Co., Ltd. - - - - 6262 3636 - Progress Plus Co., Ltd. - - - - 4545 2525 - Progress Appraisal Co., Ltd. - - - - 1919 1616 - Progress Service Co., Ltd. - - - - 1616 - - - KASIKORN SECURITIES PCL - - - - 1313 9 9 - Progress Storage Co., Ltd. - - - - 1212 - - - Progress Training Co., Ltd. - - - - 1111 - - Contingencies Subsidiaries - Muang Thai Life Assurance Co., Ltd. - - - - 2,038 2,038 1,787 1,787 - KASIKORN FACTORY & EQUIPMENT CO., LTD. - - - - 212 212 128128 Associated Company - Processing Center Co., Ltd. 1313 1313 1313 1313 Annual Report 2011 Financial Report 179

Certain subsidiaries and associated companies have entered into 1-2 year building lease and service agreements with the Bank. Rentals are charged at cost plus an increment for additional administration and maintenance expenditures incurred. As of 31 December 2011 and 2010, the Bank and its related parties have rental agreements with remaining tenures amounting to Baht 39 million and Baht 35 million, respectively.

The Bank has entered into 5-year car leasing agreements with KASIKORN LEASING CO., LTD. Such agreements are classified as finance lease agreements, charged at market rates. As of 31 December 2011 and 2010, the book value of finance lease liabilities, before elimination, amounts to Baht 857 million and 728 million, respectively.

The Bank entered into an Information Technology Service Agreement with Progress Software Co., Ltd. under which the service will be provided until 30 November 2015. As of 31 December 2011, the Bank is committed to pay total service fees of Baht 91 Million and as of 31 December 2010, the Bank has no further commitment to pay total service fees as the service fees have not been determined.

31.4.2 Revenue and expenses occurring between the Bank, its subsidiaries and associated companies for the years ended 31 December 2011 and 2010 are summarized as follows:

(Million Baht) Consolidated The Bank 2011 2010 2011 2010 Subsidiaries Revenue: Interest income - - - - 2,228 2,228 1,798 1,798 Dividend income - - - - 956 956 859 859 Fee income - - - - 3,719 3,719 2,762 2,762 Other income - - - - 1,607 1,607 955 955 Expenses: Interest expenses - - - - 197 197 110 110 Fee expenses - - - - 191 191 277 277 Personnel expenses - - - - 383 383 274 274 Other expenses - - - - 3,308 3,308 3,199 3,199 Associated Companies Revenue: Other income 12 12 8 8 12 12 8 8 Expenses: Fee expenses - - 3 3 - - 3 3 Other expenses 20 20 15 15 20 20 15 15 Annual Report 2011 180 Financial Report

The Bank has entered into a staff secondment agreement with KASIKORN SECURITIES PCL, commencing from January 2006. The agreement shall be terminated at any time by the Bank giving notice 60 days prior to the termination date. The Bank is responsible for salaries, welfare and other benefits and any liabilities that arise or may arise from the actions of the employees. For the years ended 31 December 2011 and 2010, the Bank incurred expenses amounting to Baht 383 million and Baht 274 million, respectively, presented as personnel expenses in the statements of comprehensive income. 31.4.3 Assets, liabilities and contingencies between the Bank and other business entities in which the directors, key executive officers and close members of their families have significant influence as of 31 December 2011 and 2010 were summarized as follows: (Million Baht) Consolidated and The Bank 2011 2010

Loans - TT&T Public Co., Ltd.* 2,156 - - Sansiri Public Co., Ltd. 2,032 2,136 - BANGKOK PRODUCE MERCHANDISING PUBLIC CO., LTD.* 1,541 - - PAPANAN LIMITED* 830 - - Jutha Maritime Public Co., Ltd. 687 714 - Charoen Pokphand Foods Public Co., Ltd. 600 800 - C.P. Merchandising Co., Ltd.* 585 - - SAIM QUALITY STARCH CO., LTD.* 382 - - Loxley Public Co., Ltd.* 250 - - KOMATSU BANGKOK LEASING CO., LTD.* 212 - - Bangkok Komatsu Forklift Co., Ltd.,* 205 - - Global Utilities Services Co., Ltd. 185 217 - RED LOTUS PROPERTIES LIMITED* 164 - - B.P. Food Products Co., Ltd.* 150 - - CPF Food Products Co., Ltd.* 150 - - BANGKOK FOOD PRODUCTS CO., LTD.* 146 - - TISCO TOKYO LEASING CO., LTD.* 115 - - Rajburi Foods Co., Ltd.* 100 -

Annual Report 2011 Financial Report 181

(Million Baht) Consolidated and The Bank 2011 2010 Loans (Continued) - Thanakorn Vegetable Oil Products Co., Ltd.* 92 - - Charoen Pokphand Northeastern Plc.* 50 - - Eastern Printing Public Company Limited* 42 - - Construction and Engineering Services Co., Ltd.* 22 - - M&A Guard Service Co., Ltd.* 11 - - Bangkok Glass Industry Co., Ltd.** - 693 Deposits - Counter Service Co., Ltd.* 777 - - Serm Suk Public Co., Ltd. 663 300 - TT&T Public Co., Ltd.* 554 - - CP ALL PUBLIC CO., LTD.* 472 - - Muang Thai Insurance Public Co., Ltd. 255 352 - Thai Smart Card Co., Ltd.* 228 - - C.P. Retailing and Marketing Co., Ltd.* 200 - - TOSHIBA LIGHTING COMPONENTS (THAILAND) LTD.* 170 - - BP - CASTROL (THAILAND) LIMITED* 145 - - Phatra Leasing Public Co., Ltd. 113 72 - Sansiri Public Co., Ltd. 107 194 - Sermsuk Beverage Co., Ltd. 97 45 - Global Utilities Services Co., Ltd.* 95 - - National ITMX Co., Ltd. 85 22 - SIAM MOTORS SALES CO., LTD.* 82 - - B.GRIMM BIP POWER LIMITED* 74 - - Retailink (Thailand) Co., Ltd.* 70 - - Guardfire Limited* 61 - - SIAM MOTORS TRADING CO., LTD.* 58 - - Charoen Pokphand Foods Public Co., Ltd. 52 24 - CHANACHAI LIMITED* 41 - - LOXLEY JOINT AND HOLD CO., LTD.* 41 - - TRIPLE T GLOBAL NET CO., LTD.* 39 - - Suludee Co., Ltd.* 38 - - SIAM MODIFIED STARCH CO., LTD.* 37 - Annual Report 2011 182 Financial Report

(Million Baht) Consolidated and The Bank 2011 2010 Deposits (Continued) - Loxley Trading Co., Ltd.* 36 - - General Engineering Public Co., Ltd.* 32 - - Sombat Lamsam Co., Ltd. 32 27 - Crown Seal Public Co., Ltd.* 31 - - Muangthai Holding Co., Ltd.* 30 - - JEM ENVIRONIMENTAL MANAGEMENT CO., LTD.* 29 - - PHIWANTHANA CO., LTD.* 29 - - PTT Global Chemical Public Company Limited* 29 - - Loxbit Public Co., Ltd.* 26 - - Oriental Post Co., Ltd.* 25 - - Professional Computer Co., Ltd.* 25 - - Benjangkawat Co., Ltd.* 24 - - Thai - Amadeus Southeast Asia Co., Ltd.* 23 - - The Barbecue Plaza Co., Ltd.* 21 - - Smithithada Co., Ltd. 20 15 - Sarasin Co., Ltd.* 20 - - SIAM MUSIC YAMAHA CO., LTD.* 19 - - P I A INTERIOR COMPANY LIMITED* 18 - - Ruam Samphant Co., Ltd.* 18 - - Architects 49 Ltd.* 17 - - PLUS PROPERTY CO., LTD.* 17 - - M&E ENGINEERING 49 LIMITED* 17 - - Songkhla Shipping Agency Co., Ltd.* 17 - - PAPANAN LIMITED* 16 - - The Viriyah Insurance Co., Ltd.* 15 - - SIAM QUALITY STARCH CO., LTD.* 15 - - SIAM HITACHI AUTOMOTIVE PRODUCTS LTD.* 13 - - GS YUASA SIAM SALES LTD.* 13 - - P 49 INTERIOR AND ASSOCIATES CO., LTD.* 13 - - CONSULTING & MANAGEMENT 49 LTD.* 13 -

Annual Report 2011 Financial Report 183

(Million Baht) Consolidated and The Bank 2011 2010 Deposits (Continued) - Toshiba Thailand Co., Ltd.* 13 - - SIAM GS SALES CO., LTD.* 12 - - Pruetthada Co., Ltd. 12 5 - BLUESCOPE LYSAGHT (THAILAND) CO., LTD.* 12 - - Floor Industry Co., Ltd.* 11 - - GRAPHIC 49 LIMITED* 11 - - S.U.N. MANAGEMENT CO., LTD.* 10 - - Mobile Innovation Co., Ltd.* 10 - - The Phatra Samphant Co., Ltd.* 10 - - Mitsubishi Elevator Asia Co., Ltd. 9 37 - Nithi Thamrong Co., Ltd. 6 37 - Zin Suapa Co., Ltd. 6 12 - TOT Public Co., Ltd.** - 34 - Sup Wattana Co., Ltd.** - 19 - Khao Angkaew Co., Ltd.** - 13 Contingencies - Charoen Pokphand Foods Public Co., Ltd. 3,863 1,619 - PTT Global Chemical Public Company Limited* 2,003 - - Sansiri Public Co., Ltd. 1,191 1,296 - CPF Food Products Co., Ltd.* 255 - - Loxley Public Co., Ltd.* 245 - - B.GRIMM BIP POWER LIMITED* 229 - - Quality Houses Public Co., Ltd. 224 583 - CP ALL PUBLIC CO., LTD.* 184 - - Home Product Center Public Co., Ltd.* 127 - - Global Utilities Services Co., Ltd. 121 174 - CASA VILLE CO., LTD.* 70 - - Construction and Engineering Services Co., Ltd.* 64 - - BANGKOK PRODUCE MERCHANDISING PUBLIC CO., LTD.* 53 - - General Engineering Public Co., Ltd.* 52 - - C.P. Merchandising Co., Ltd.* 49 - - JEM ENVIRONIMENTAL MANAGEMENT CO., LTD.* 47 - Annual Report 2011 184 Financial Report

(Million Baht) Consolidated and The Bank 2011 2010 Contingencies (Continued) - Retailink (Thailand) Co., Ltd.* 45 - - Loxley Trading Co., Ltd.* 45 - - SCG Network Management Co., Ltd.* 44 - - Dole Thailand Co., Ltd. 42 75 - C.P. Retailing and Marketing Co., Ltd.* 40 - - Eastern Printing Public Company Limited* 40 - - Professional Computer Co., Ltd.* 34 - - Petpak Co., Ltd.* 29 - - SCG Trading Co., Ltd.* 24 - - PHIWANTHANA CO., LTD.* 24 - - SCG Logistics Management Co., Ltd.* 23 - - Crown Seal Public Co., Ltd.* 21 - - Loxbit Public Co., Ltd.* 21 - - Siam Motor Parts Co., Ltd.* 20 - - SIAM RIKEN INDUSTRIAL CO., LTD.* 19 - - SAIM QUALITY STARCH CO., LTD.* 18 - - Charoen Pokphand Northeastern Plc.* 13 - - Bangkok Glass Industry Co., Ltd.** - 67 - Yip In Tsoi & Jacks Co., Ltd.** - 15 - Jutha Maritime Public Co., Ltd. - 12

* 2010 the entity was not related to the Bank. ** 2011 the entity is no longer related to the Bank.

31.4.4 During 2011, a subsidiary of the Bank sold a property foreclosed to another related business in the amount of Baht 540 million which has gain on sale of property foreclosed in amount of Baht 238 million. Annual Report 2011 Financial Report 185

31.4.5 Assets, liabilities and contingencies between the Bank and its directors and key executive officers or the Bank’s employees who have authority and responsibility for planning, directing and controlling the activities of the Bank including their close family members as of 31 December 2011 and 2010 are summarized as follows: (Million Baht) Consolidated and The Bank 2011 2010 Loans 67 30 Deposits 2,920 1,150

31.5 Key management personnel compensation for the years ended 31 December 2011 and 2010 are consisted of: (Million Baht) Consolidated The Bank 2011 2010 2011 2010 Short-term employee benefits 928928 904904 535535 539539 Post-employment benefits 24 24 23 23 19 19 18 18 Total 952952 927 927 554 554 557 557

32 BENEFITS OF DIRECTORS AND EXECUTIVES The Bank and its subsidiaries have not paid other benefits to directors and executives except for the benefits that are normally paid such as directors’ fee, directors’ bonus (if any) and income tax, executives’ salary and bonus (if any). Annual Report 2011 186 Financial Report

33 CAPITAL COMMITMENTS AND LONG-TERM AGREEMENTS 33.1 Capital Commitments (Million Baht) Consolidated The Bank 2011 2010 2011 2010 Contracted but not provided for 5,607 7,436 5,610 7,435

33.2 Long-Term Agreements 33.2.1 Operating Lease The Bank and its subsidiaries have entered into land/building lease agreements for branch offices and vehicle lease agreements. The Bank and its subsidiaries were committed to pay future rentals, which are summarized as follows: (Million Baht) Consolidated The Bank Types of Lease Agreement Remaining Period 2011 2011 Land/building lease agreements 1 January 2012 – 6 March 2036 1,800 1,785 Vehicle lease agreements 1 January 2012 – 21 December 2016 104 101 Others 1 January 2012 – 31 January 2016 45 - Total 1,949 1,886 Annual Report 2011 Financial Report 187

(Million Baht) Consolidated The Bank Types of Lease Agreement Remaining Period 2010 2010 Land/building lease agreements 1 January 2011 – 6 March 2036 1,830 1,806 Vehicle lease agreements 1 January 2011 – 15 July 2015 109 253 Others 1 January 2011 – 25 October 2014 33 - Total 1,972 2,059

33.2.2 Service Agreement The Bank entered into an Information Technology Service, under which the service will be provided until 31 December 2015. As of 31 December 2011 and 2010, the Bank is committed to pay total service fees of Baht 5,975 million and Baht 6,156 million, respectively.

34 THAI FINANCIAL REPORTING STANDARDS (TFRS) NOT YET ADOPTED The Bank and its subsidiaries have not adopted the following revised TFRS that have been issued as of the reporting date but are not yet effective. The below revised TFRS (revised 2009) is expected to become effective for annual financial periods beginning on or after 1 January 2013. TFRS Topic TAS 21 (Revised 2009) The Effects of Changes in Foreign Exchange Rates The management is presently considering the potential impact from the adoption of the above revised TFRS.

35 THE FINANCIAL POSITIONS AND RESULTS OF OPERATIONS DIFFERENTIATED BY DOMESTIC AND FOREIGN BUSINESS The financial positions and results of operations differentiated by domestic and foreign business can be summarized as follows: Annual Report 2011 188 Financial Report

35.1 Financial Positions Classified by Types of Business (Million Baht) Consolidated 2011 Domestic Foreign Eliminated Business Business Total Transactions Total Total assets 1,709,069 13,871 1,722,940 - 1,722,940 Interbank and money market items - net (assets) 108,805 3,164 111,969 - 111,969 Investments - net 259,206 5,089 264,295 - 264,295 Loans to customers and accrued interest receivables - net 1,168,784 3,812 1,172,596 - 1,172,596 Deposits 1,237,897 4,332 1,242,229 - 1,242,229 Interbank and money market items 52,454 886 53,340 - 53,340 (liabilities) Debts issued and borrowings 64,507 5,796 70,303 - 70,303

(Million Baht) Consolidated 2010 Domestic Foreign Eliminated Business Business Total Transactions Total Total assets 1,537,291 11,182 1,548,473 (1,809) 1,546,664 Interbank and money market items - net (assets) 93,468 4,092 97,560 - 97,560 Investments - net 245,615 5,602 251,217 - 251,217 Loans to customers and accrued interest receivables - net 1,040,172 1,394 1,041,566 - 1,041,566 Deposits 1,098,393 1,643 1,100,036 - 1,100,036 Interbank and money market items (liabilities) 33,064 - 33,064 - 33,064 Debts issued and borrowings 83,421 5,511 88,932 - 88,932

Annual Report 2011 Financial Report 189

(Million Baht) The Bank 2011 Domestic Foreign Eliminated Business Business Total Transactions Total Total assets 1,590,696 13,871 1,604,567 - 1,604,567 Interbank and money market items - net (assets) 107,041 3,164 110,205 - 110,205 Investments - net 168,945 5,089 174,034 - 174,034 Loans to customers and accrued interest receivables - net 1,160,103 3,812 1,163,915 - 1,163,915 Deposits 1,239,528 4,332 1,243,860 - 1,243,860 Interbank and money market items 55,889 887 56,776 - 56,776 (liabilities) Debts issued and borrowings 65,131 5,796 70,927 - 70,927

(Million Baht) The Bank 2010 Domestic Foreign Eliminated Business Business Total Transactions Total Total assets 1,441,359 11,182 1,452,541 (1,809) 1,450,732 Interbank and money market items - net (assets) 92,676 4,092 96,768 - 96,768 Investments - net 178,096 5,602 183,698 - 183,698 Loans to customers and accrued interest receivables - net 1,031,953 1,394 1,033,347 - 1,033,347 Deposits 1,100,586 1,643 1,102,229 - 1,102,229 Interbank and money market items (liabilities) 34,997 - 34,997 - 34,997 Debts issued and borrowings 84,031 5,511 89,542 - 89,542 Annual Report 2011 190 Financial Report

35.2 Results of Operations Classified by Types of Business (Million Baht) Consolidated 2011 Domestic Foreign Eliminated Business Business Total Transactions Total Interest income 83,412 483 83,895 (202) 83,693 Interest expenses 27,276 128 27,404 (202) 27,202 Interest income - net 56,136 355 56,491 - 56,491 Fees and service income - net 20,595 42 20,637 - 20,637 Other operating income 12,841 539 13,380 - 13,380 Other operating expenses 50,087 277 50,364 - 50,364 Operating profit before income tax expense 39,485 659 40,144 - 40,144

(Million Baht) Consolidated 2010 Domestic Foreign Eliminated Business Business Total Transactions Total Interest income 62,169 220 62,389 (118) 62,271 Interest expenses 15,578 67 15,645 (118) 15,527 Interest income - net 46,591 153 46,744 - 46,744 Fees and service income - net 18,186 41 18,227 - 18,227 Other operating income 10,553 (380) 10,173 - 10,173 Other operating expenses 44,555 149 44,704 - 44,704 Operating profit (loss) before income tax expense 30,775 (335) 30,440 - 30,440 Annual Report 2011 Financial Report 191

(Million Baht) The Bank 2011 Domestic Foreign Eliminated Business Business Total Transactions Total Interest income 77,747 483 78,230 (202) 78,028 Interest expenses 27,416 128 27,544 (202) 27,342 Interest income - net 50,331 355 50,686 - 50,686 Fees and service income - net 19,593 42 19,635 - 19,635 Other operating income 8,598 539 9,137 - 9,137 Other operating expenses 44,946 277 45,223 - 45,223 Operating profit before income tax expense 33,576 659 34,235 - 34,235

(Million Baht) The Bank 2010 Domestic Foreign Eliminated Business Business Total Transactions Total Interest income 57,338 220 57,558 (118) 57,440 Interest expenses 15,643 67 15,710 (118) 15,592 Interest income - net 41,695 153 41,848 - 41,848 Fees and service income - net 17,283 41 17,324 - 17,324 Other operating income 7,648 (380) 7,268 - 7,268 Other operating expenses 40,187 149 40,336 - 40,336 Operating profit (loss) before income tax expense 26,439 (335) 26,104 - 26,104 Annual Report 2011 192 Financial Report

36 INTEREST INCOME Interest income for the years ended 31 December 2011 and 2010 consisted of: (Million Baht) Consolidated The Bank 2011 2010 2011 2010 Interbank and money market items 7,178 2,363 7,143 2,347 Investments and trading transactions 285 279 285 279 Investments in debt securities 8,129 6,650 4,325 3,638 Loans 64,801 49,895 66,302 50,984 Hire purchase and financial lease 3,327 2,892 - - Others (27) 192 (27) 192 Total 83,693 62,271 78,028 57,440

37 INTEREST EXPENSES Interest expenses for the years ended 31 December 2011 and 2010 consisted of: (Million Baht) Consolidated The Bank 2011 2010 2011 2010 Deposits 15,067 6,863 15,078 6,870 Interbank and money market items 3,758 1,845 3,820 1,857 Contributions to Deposit Protection Agency 4,776 4,026 4,776 4,026 Debts issued - Subordinated debentures 1,728 1,859 1,728 1,859 - Others 1,776 885 1,799 891 Borrowings 36 - 36 9 Others 61 49 105 80 Total 27,202 15,527 27,342 15,592 Annual Report 2011 Financial Report 193

38 FEES AND SERVICE INCOME - NET Fees and service income - net for the years ended 31 December 2011 and 2010 consisted of: (Million Baht) Consolidated The Bank 2011 2010 2011 2010 Fees and service income Acceptances, aval and guarantees 1,803 1,657 1,803 1,657 Other 24,269 21,164 23,302 20,210 Total Fees and service income 26,072 22,821 25,105 21,867 Fees and service expenses 5,435 4,594 5,470 4,544 Fees and service income - net 20,637 18,227 19,635 17,323

39 GAIN ON TRADING AND FOREIGN EXCHANGE TRANSACTIONS Gain on trading and foreign exchange transactions for the years ended 31 December 2011 and 2010 consisted of: (Million Baht) Consolidated The Bank 2011 2010 2011 2010 1. Gain (loss) on trading and foreign exchange transactions - Foreign currencies and foreign currency related derivatives 6,059 4,097 6,058 4,099 - Interest rate related derivatives (794) 91 (794) 91 - Debt securities 4 - 4 - - Equity securities 4 268 5 257 - Others (59) 9 (59) 9 Total 5,214 4,465 5,214 4,456

Annual Report 2011 194 Financial Report

40 LOSS ON FINANCIAL LIABILITIES DESIGNATED AT FAIR VALUE THROUGH PROFIT OR LOSS Loss on financial liabilities designated at fair value through profit or loss for the years ended 31 December 2011 and 2010 consisted of: (Million Baht) ConsolidatedConsolidated and The and Bank The Bank 2011 2011 2010 2010 1. Changes in the fair value - net - Borrowing 16 16 (24) (24) 2. Loss on redemption or transferable and interest expense which is not excluded NO. 1. (70) (70) (71) (71) Total (54) (54) (95) (95)

41 GAIN ON INVESTMENTS Gain on investments presented in the statements of comprehensive income for the years ended 31 December 2011 and 2010 consisted of: (Million Baht) Consolidated The Bank 2011 2010 2011 2010 Gain (loss) on disposal Available-for-sale investments 512 618 89 257 Held-to-maturity debt instruments 55 - - - General investments (19) (4) (19) (4) Investments in subsidiaries and associates 7 - (2) - Total 555 614 68 253 (Loss) Reversal on impairment and write-off of investment Equity securities - available-for-sale (1) (4) - (10) General investments 251 - 251 - Investments in subsidiaries and associates 1 - 1 - Total 251 (4) 252 (10) Total gain on investments 806 610 320 243 Annual Report 2011 Financial Report 195

42 IMPAIRMENT LOSS ON LOANS AND DEBT SECURITIES Impairment loss on loans and debt securities for the years ended 31 December 2011 and 2010 consisted of: (Million Baht) Consolidated The Bank 2011 2010 2011 2010 Interbank and money market items 1 14 1 14 Held-to-maturity debt instruments (258) 5 (254) 9 Loans to customers 4,031 4,085 4,062 3,872 Loss on debt restructuring 3,572 2,597 3,571 2,596 Total 7,346 6,701 7,380 6,491

43 INCOME TAX EXPENSE On 21 December 2011, the Government has issued a Royal Decree under the Revenue Code that give effect to the Cabinet resolution on 11 October 2011 regarding the Reduction and Exemption in Income Taxes (No. 530) B.E. 2554 to reduce the corporate income tax rate for the three accounting periods; from 30% to 23% for the accounting period 2012 and to 20% for the following two accounting periods 2013 and 2014. The Bank and subsidiaries shall be measured deferred tax assets and deferred tax liabilities at the tax rates that are expected to apply to the period when the asset is realized or the liability is settled in line with Thai Accounting Standard. The substantively enacted tax rates which should be applied in measuring deferred tax assets and liabilities shall be 23% for the accounting period 2012 and 20% for accounting periods 2013 onwards that give effect to implication of The Federation of Accounting Professions. Annual Report 2011 196 Financial Report

43.1 Income tax recognised in profit or loss for the years ended 31 December 2011 and 2010 consisted of: (Million Baht) Consolidated The Bank 2011 2010 2011 2010 Current tax expense Current year 12,174 9,493 9,907 7,702 Deferred tax expense Movements in temporary differences (194) (399) 53 (213) Income tax reduction For items recognised before the Cabinet resoluation 1,868 - 1,995 - For items recognised after the Cabinet resoluation 114 - 121 - 1,788 (399) 2,169 (213) Total income tax expense 13,962 9,094 12,076 7,489

See Note 20 for movement in deferred tax assets and deferred tax liabilities during the year

43.2 Income tax recognised in other comprehensive income for the years ended 31 December 2011 and 2010 consisted of: (Million Baht) Consolidated The Bank 2011 2010 2011 2010 Income taxes relating to components of other comprehensive income Movements in temporary differences 45 (824) (191) (25) Deferred tax - income tax reduction 1,345 - 1,146 - Total 1,390 (824) 955 (25) Annual Report 2011 Financial Report 197

43.3 Reconciliation of effective tax rates as consisted of (Million Baht) Consolidated 2011 2010 Rate (%) Amount Rate (%) Amount Operating profit before income tax 40,144 30,440 Income tax using the Thai corporation tax rate 30.00 12,043 30.00 9,132 Deferred tax - income tax reduction For items recognised before the Cabinet resoluation 1,868 - For items recognised after the Cabinet resoluation 114 - Tax effect of income and expenses that are not taxable income or not deductible in determining taxable profit, net (63) (38) Total 34.78 13,962 29.88 9,094

(Million Baht) The Bank 2011 2010 Rate (%) Amount Rate (%) Amount Operating profit before income tax 34,235 26,104 Income tax using the Thai corporation tax rate 30.00 10,270 30.00 7,831 Deferred tax - income tax reduction For items recognised before the Cabinet resoluation 1,995 - For items recognised after the Cabinet resoluation 121 - Tax effect of income and expenses that are not taxable income or not deductible in determining taxable profit, net (310) (342) Total 35.27 12,076 28.69 7,489

Annual Report 2011 198 Financial Report

44 FINANCIAL RISK MANAGEMENT Credit risk Credit risk refers to the risk that a counterparty or a borrower may default on its contractual obligations and agreements. Such default may be caused by the counterparty’s inability to pay due to financial encumbrances or their intention not to abide by the contractual agreements, resulting in a loss to the Bank. The bank has employed credit portfolio optimization techniques to determine the target of loan growth and its desirable credit portfolio composition that strive for the highest possible risk-adjusted return within acceptable risk levels under stress conditions, by taking into account of economic outlook, potential market opportunities, and the bank’s strategic direction. The Bank has employed credit risk management processes in credit processes. In assessing medium and large corporate customers’ credit risk level, the Bank utilizes credit risk rating tools to enhance the quality of loans granted. Furthermore, the credit scoring has been employed to determine the credit risk level of retail customers to ensure uniformity of assessment results. To manage medium business and large corporate business portfolios following the approval process, the Bank annually reviews customers’ credits rating a on qualitative and quantitative basis. Regarding the management of retail portfolio, behavior scoring has been adopted for assessing customers’ risk level resulting in the Bank’s capability in determining risk-adjusted returns or interest rates. This also enhances the determination of asset allocation across businesses and industries to diversify risks at an aggregate level. Moreover, the bank has employed collection scoring to define risk-based collection strategies and optimize collection efficiency. In addition, the Bank has conducted the stress tests to assess potential impacts from political, financial shock on customer’s credit risk profiles, flooding, and other situation in order to determine the implication to credit policy and credit risk management. Annual Report 2011 Financial Report 199

In the credit approval process, the Bank considers the customer’s ability to repay and the loan objectives as key factors in the approval of credit and may obtain sufficient collateral or other securities, where appropriate, as a means of mitigating the risk of financial losses from default. To maximize the effectiveness of the credit approval process, credit analysis and approval functions are separated from the units responsible for maintaining customer relationships. The Bank also has processes for regularly reviewing customers’ credit rating and performance on all approved transactions. For non-performing loans (NPL), the Bank has closely and continuously monitored, resolved and/or restructured them to retain maximum benefits for the Bank. For loans item shown in the statements of financial position, the Bank’s maximum credit loss is the carrying amount of net loans after deduction of applicable allowance for losses without considering the value of collateral. In addition, credit risk may arise from off-financial reporting items or contingencies.

Market risk Market risk is any risk due to changes in interest rates, foreign exchange rates, equity prices, commodity prices and risk arising from credit derivatives which may cause volatility in the Bank’s earnings or fluctuations in the value of the Bank’s financial assets and liabilities both in the current reporting period and in the future. The Bank currently faces 3 major types of market risk namely interest rate risk, foreign exchange rate risk and equity position risk. As the Bank has chosen not to retain any position dealing with commodity prices and credit derivatives, they have been managed under back-to-back policy. Annual Report 2011 200 Financial Report

1. Interest rate risk Interest rate risk refers to any risk arising from changes in interest rates which may affect the value of the Bank’s financial instruments or may cause volatility in the Bank’s earnings or cost of funds, both in the current reporting period and in the future. The Bank has employed various tools to manage interest rate risk such as Value-at-Risk (VaR) and Interest Rate Risk Gap under the supervision of Risk Management Committee and Assets and Liabilities Management Sub-committee.

An analysis of loans (including financial institutions) at fixed and floating interest rates (MLR, MOR and MRR) as of 31 December 2011 and 2010 is as follows:

(Million Baht) Consolidated The Bank 2011 2010 2011 2010 Fixed interest rates 463,588 376,137 455,797 369,061 Floating interest rates 841,264 772,016 839,540 769,819 Total Loans (including financial institutions) 1,304,852 1,148,153 1,295,337 1,138,880

The average balances of the interest-bearing financial assets and liabilities of the Bank and its subsidiaries, calculated by using the average of the beginning of the year and the ending of the year, and the average interest rates for the years ended 31 December 2011 and 2010 are as follows: Annual Report 2011 Financial Report 201

(Million Baht) Consolidated 2011 2010 Interest Interest Average Income/ Average Average Income/ Average Balance Expense Rate (%) Balance Expense Rate (%) Interest-bearing Financial Assets Interbank and money market items 104,669 7,178 6.86 80,445 2,363 2.94 Investments 257,611 8,414 3.27 252,958 6,930 2.74 Loans to customers 1,105,320 68,128 6.16 973,625 52,787 5.42 Total 1,467,600 83,720 5.70 1,307,028 62,080 4.75 Interest-bearing Financial Liabilities Deposits 1,171,133 15,067 1.29 1,037,764 6,863 0.66 Interbank and money market items 43,202 3,758 8.70 40,025 1,845 4.61 Debts issued and borrowings 79,618 3,540 4.45 82,866 2,744 3.31 Total 1,293,953 22,365 1.73 1,160,655 11,452 0.99

(Million Baht) The Bank 2011 2010 Interest Interest Average Income/ Average Average Income/ Average Balance Expense Rate (%) Balance Expense Rate (%) Interest-bearing Financial Assets Interbank and money market items 103,398 7,143 6.91 79,688 2,347 2.95 Investments 164,011 4,610 2.81 179,253 3,917 2.19 Loans to customers 1,097,071 66,303 6.04 966,586 50,984 5.27 Total 1,364,480 78,056 5.72 1,225,527 57,248 4.67 Interest-bearing Financial Liabilities Deposits 1,173,045 15,078 1.29 1,040,147 6,870 0.66 Interbank and money market items 45,886 3,820 8.32 41,502 1,857 4.47 Debts issued and borrowings 80,235 3,563 4.44 84,218 2,759 3.28 Total 1,299,166 22,461 1.73 1,165,867 11,486 0.99 Annual Report 2011 202 Financial Report

Financial assets and liabilities, classified by maturity of interest repricing, as of 31 December 2011 and 2010 shown below: (Million Baht) Consolidated 2011 Immediate Less than 6 months Over 1 Year Over Non-interest Stop Repricing 6 months to 1 Year to 5 Years 5 Years Bearing Accrued Total Financial Assets Cash - - - - - 53,211 - 53,211 Interbank and money market items 6,814 97,172 5,585 80 - 2,378 - 112,029 Investments 176 9,505 68,192 95,066 76,197 26,497 820 276,453 Loans to customers 752,913 128,639 12,284 85,589 89,512 75,503 66,394 1,210,834 Accrued interest receivables - - - - - 2,105 - 2,105 Other assets 3,140 - - - - 9,087 - 12,227 Total Financial Assets 763,043 235,316 86,061 180,735 165,709 168,781 67,214 1,666,859

Financial Liabilities Deposits 686,716 250,054 172,511 66,330 - 66,618 - 1,242,229 Interbank and money market items 4,302 36,929 8,423 36 - 3,650 - 53,340 Liabilities payable on demand - - - - - 11,598 - 11,598 Financial liabilities designated at fair value through profit or loss - 993 701 419 - - - 2,113 Debts issued and borrowings - 37,588 1,139 23,267 8,309 - - 70,303 Other liabilities 5,390 - - - - 7,340 - 12,730 Total Financial Liabilities 696,408 325,564 182,774 90,052 8,309 89,206 - 1,392,313 Items recognised on the statements of financial position 66,635 (90,248) (96,713) 90,683 157,400 79,575 67,214 274,546

Annual Report 2011 Financial Report 203

(Million Baht) Consolidated 2010 Immediate Less than 6 months Over 1 Year Over Non-interest Stop Repricing 6 months to 1 Year to 5 Years 5 Years Bearing Accrued Total Financial Assets Cash - - - - - 32,457 - 32,457 Interbank and money market items 6,961 81,883 695 - - 8,080 - 97,619 Investments 2,265 10,062 55,283 104,667 64,814 11,382 1,088 249,561 Loans to customers 693,306 110,485 10,423 75,952 82,467 38,755 65,593 1,076,981 Accrued interest receivables - - - - - 1,417 - 1,417 Other assets 836 - - - - 8,530 - 9,366 Total Financial Assets 703,368 202,430 66,401 180,619 147,281 100,621 66,681 1,467,401

Financial Liabilities Deposits 687,502 158,301 91,826 101,631 - 60,776 - 1,100,036 Interbank and money market items 1,815 27,090 131 1,031 - 2,997 - 33,064 Liabilities payable on demand - - - - - 21,622 - 21,622 Financial liabilities designated at fair value through profit or loss - 5,118 360 678 - - - 6,156 Debts issued and borrowings - 56,397 18,643 795 13,022 75 - 88,932 Other liabilities 6,571 - - - - 5,282 - 11,853 Total Financial Liabilities 695,888 246,906 110,960 104,135 13,022 90,752 - 1,261,663 Items recognised on the statements of financial position 7,480 (44,476) (44,559) 76,484 134,259 9,869 66,681 205,738

Annual Report 2011 204 Financial Report

(Million Baht) The Bank 2011 Immediate Less than 6 months Over 1 year Over Non-interest Stop Repricing 6 months to 1 Year to 5 Years 5 Years Bearing Accrued Total Financial Assets Cash - - - - - 53,209 - 53,209 Interbank and money market items 6,552 96,339 5,213 - - 2,131 - 110,235 Investments 176 5,154 66,905 81,656 1,396 19,240 675 175,202 Loans to customers 750,057 130,770 7,312 84,170 88,864 75,503 64,643 1,201,319 Accrued interest receivables - - - - - 1,896 - 1,896 Other assets 3,140 - - - - 5,559 - 8,699 Total Financial Assets 759,925 232,263 79,430 165,826 90,260 157,538 65,318 1,550,560

Financial Liabilities Deposits 688,037 250,149 172,511 66,330 - 66,833 - 1,243,860 Interbank and money market items 7,510 36,929 8,423 36 - 3,878 - 56,776 Liabilities payable on demand - - - - - 11,598 - 11,598 Financial liabilities designated at fair value through profit or loss - 993 701 419 - - - 2,113 Debts issued and borrowings - 38,212 1,139 23,267 8,309 - - 70,927 Other liabilities 2,662 - - - - 7,345 - 10,007 Total Financial Liabilities 698,209 326,283 182,774 90,052 8,309 89,654 - 1,395,281 Items recognised on the statements of financial position 61,716 (94,020) (103,344) 75,774 81,951 67,884 65,318 155,279

Annual Report 2011 Financial Report 205

(Million Baht) The Bank 2010 Immediate Less than 6 months Over 1 year Over Non-interest Stop Repricing 6 months to 1 Year to 5 Years 5 Years Bearing Accrued Total Financial Assets Cash - - - - - 32,456 - 32,456 Interbank and money market items 7,111 81,720 - - - 7,965 - 96,796 Investments 2,265 7,189 54,157 97,421 3,638 2,625 1,088 168,383 Loans to customers 689,078 113,879 6,167 74,545 81,817 38,755 63,467 1,067,708 Accrued interest receivables - - - - - 1,225 - 1,225 Other assets 836 - - - - 5,782 - 6,618 Total Financial Assets 699,290 202,788 60,324 171,966 85,455 88,808 64,555 1,373,186

Financial Liabilities Deposits 688,650 158,424 91,826 101,631 - 61,698 - 1,102,229 Interbank and money market items 3,748 27,090 131 1,031 - 2,997 - 34,997 Liabilities payable on demand - - - - - 21,616 - 21,616 Financial liabilities designated at fair value through profit or loss - 5,118 360 678 - - - 6,156 Debts issued and borrowings - 57,007 18,643 795 13,022 75 - 89,542 Other liabilities 5,015 - - - - 5,285 - 10,300 Total Financial Liabilities 697,413 247,639 110,960 104,135 13,022 91,671 - 1,264,840 Items recognised on the statements of financial position 1,877 (44,851) (50,636) 67,831 72,433 (2,863) 64,555 108,346

Annual Report 2011 206 Financial Report

2. Foreign exchange rate risk Foreign exchange rate risk is the risk that occurs from changes in exchange rates which may affect the value of the Bank’s financial instruments or may cause volatility in the Bank’s earnings or cost of funds. Tools adopted for managing foreign exchange rate risk are for instance, open positions and VaR. Foreign exchange rate risk is under the supervision of Risk Management Committee and Assets and Liabilities Management Sub-committees.

Foreign currency positions in Baht equivalent, as of 31 December 2011 and 2010 were as follows: (Million Baht) Consolidated 2011 Currency US Dollar Yen Pound Euro Others Total Assets Cash 1,468 46 59 350 272 2,195 Interbank and money market items - net 9,148 113 164 752 7,037 17,214 Investments - net 10,845 118 - 204 53 11,220 Loans to customer and accrued interest receivables - net 75,324 2,163 208 1,820 5,314 84,829 Derivatives - net 32,895 48 - - 6,100 39,043 Other assets 3,312 2 1 30 11 3,356 Total 132,992 2,490 432 3,156 18,787 157,857 Liabilities Deposits 14,508 449 528 2,308 784 18,577 Interbank and money market items 3,408 7,684 - - 886 11,978 Liability on demand 4,513 106 60 562 145 5,386 Debts issued and borrowings 5,796 - - - - 5,796 Derivatives - net - - - 157 - 157 Other liabilities 2,494 51 5 448 164 3,162 Total 30,719 8,290 593 3,475 1,979 45,056 Foreign currency position of items recognised on the statements of financial position - net 102,273 (5,800) (161) (319) 16,808 112,801 items not recognised on the statements of financial position - net (112,028) 5,689 159 454 (12,514) (118,240) (Forward exchange contracts, cross currency swaps and FX options) Annual Report 2011 Financial Report 207

(Million Baht) Consolidated 2010 Currency US Dollar Yen Pound Euro Others Total Assets Cash 1,011 65 71 383 236 1,766 Interbank and money market items - net 8,061 91 117 65 3,255 11,589 Investments - net 7,798 107 - 198 39 8,142 Loans to customer and accrued interest receivables - net 63,900 1,645 47 1,068 1,289 67,949 Derivatives - net 68,893 43 - - 386 69,322 Other assets 777 8 2 16 3 806 Total 150,440 1,959 237 1,730 5,208 159,574 Liabilities Deposits 11,863 212 635 1,818 559 15,087 Interbank and money market items 199 5,084 - - 4 5,287 Liability on demand 8,206 88 124 936 484 9,838 Debts issued and borrowings 5,512 - - - - 5,512 Derivatives - net - - - 269 - 269 Other liabilities 4,850 40 10 415 43 5,358 Total 30,630 5,424 769 3,438 1,090 41,351 Foreign currency position of items recognised on the statements of financial position - net 119,810 (3,465) (532) (1,708) 4,118 118,223 items not recognised on the statements of financial position - net (130,974) 3,572 536 1,590 (501) (125,777) (Forward exchange contracts, cross currency swaps and FX options) Annual Report 2011 208 Financial Report

(Million Baht) The Bank 2011 Currency US Dollar Yen Pound Euro Others Total Assets Cash 1,468 46 59 350 272 2,195 Interbank and money market items - net 9,093 113 164 752 7,037 17,159 Investments - net 7,493 - - 3 23 7,519 Loans to customer and accrued interest receivables - net 75,324 2,163 208 1,820 5,314 84,829 Derivatives - net 32,895 48 - - 6,100 39,043 Other assets 3,280 2 1 22 11 3,316 Total assets 129,553 2,372 432 2,947 18,757 154,061 Liabilities Deposits 14,508 449 528 2,308 784 18,577 Interbank and money market items 3,408 7,684 - - 886 11,978 Liability on demand 4,513 106 60 562 145 5,386 Debts issued and borrowings 5,796 - - - - 5,796 Derivatives - net - - - 157 - 157 Other liabilities 2,494 51 5 448 164 3,162 Total liabilities 30,719 8,290 593 3,475 1,979 45,056 Foreign currency position of items recognised on the statements of financial position - net 98,834 (5,918) (161) (528) 16,778 109,005 items not recognised on the statements of financial position - net (112,028) 5,689 159 454 (12,514) (118,240) (Forward exchange contracts, cross currency swaps and FX options)

Annual Report 2011 Financial Report 209

(Million Baht) The Bank 2010 Currency US Dollar Yen Pound Euro Others Total Assets Cash 1,011 65 71 383 236 1,766 Interbank and money market items - net 8,061 91 117 65 3,255 11,589 Investments - net 6,490 - - 3 23 6,516 Loans to customer and accrued interest receivables - net 63,900 1,645 47 1,068 1,289 67,949 Derivatives - net 68,893 43 - - 386 69,322 Other assets 757 8 2 8 3 778 Total 149,112 1,852 237 1,527 5,192 157,920 Liabilities Deposits 11,863 212 635 1,818 559 15,087 Interbank and money market items 199 5,084 - - 4 5,287 Liability on demand 8,206 88 124 936 484 9,838 Debts issued and borrowings 5,512 - - - - 5,512 Derivatives - net - - - 269 - 269 Other liabilities 4,850 40 10 415 43 5,358 Total 30,630 5,424 769 3,438 1,090 41,351 Foreign currency position of items recognised on the statements of financial position - net 118,482 (3,572) (532) (1,911) 4,102 116,569 items not recognised on the statements of financial position - net (130,974) 3,572 536 1,590 (501) (125,777) (Forward exchange contracts, cross currency swaps and FX options) Annual Report 2011 210 Financial Report

3. Equity price risk Equity price risk is any risk arising from changes in the price of equities or common stock that may cause volatility in the Bank’s earnings or fluctuations in the value of the Bank’s financial assets. The Bank manages risk arising from equity underwriting and investment in equity security under relevant applicable regulations. The Bank has closely managed and monitored market situations to provide information for management in order to retain maximum benefits for the Bank.

4. Commodity price risk Commodity price risk is any risk arising from changes in the price of commodities which may affect the value of the Bank’s financial instruments or may cause volatility in the Bank’s earnings or cost of funds. The Bank has no policy to hold commodity position and then manages risk arising from commodity position under back-to-back policy, and relevant applicable regulations. The Bank has closely managed and monitored market situations to provide information for management in order to retain maximum benefits for the Bank. 5. Credit derivatives price risk Credit derivatives price risk is any risk arising from changes in the price of credit derivatives which may affect the value of the Bank’s financial instruments or may cause volatility in the Bank’s earnings or cost of funds. The Bank manages risk arising from credit derivatives under relevant applicable regulations. Credit derivatives price risk is under the supervision of Risk Management Committee.

Liquidity risk Liquidity risk is the risk of the prospect that the Bank will be unable to meet its obligations as they fall due because of an inability to liquidate assets or obtain funding sufficiently in a timely manner with appropriate cost which could result in losses. Annual Report 2011 Financial Report 211

The Bank manages its liquidity position under the Bank of Thailand’s liquidity reserve regulations and other applicable regulations. The Treasury Department is accountable for managing the Bank’s liquidity position by providing short-term and long-term funding sources as well as investing in highly liquid assets in both domestic and foreign currencies. The Bank also ensures that its liquidity position is suitable and sufficient for the current and foreseeable market conditions. The Assets and Liabilities Management Sub-committee and the Risk Management Committee supervises management of liquidity risk.

Financial assets and liabilities, classfied by contractual matuarity analysis, as of 31 December 2011 and 2010 shown follows: (Million Baht) Consolidated 2011 Less than 6 months Over 1 Year Over No At call 6 months to 1 Year to 5 Years 5 Years Maturity Total Financial Assets Cash - - - - - 53,211 53,211 Interbank and money market items 9,056 97,308 5,585 80 - - 112,029 Investments 58 9,382 49,538 113,031 77,816 26,628 276,453 Loans to customers 195,330 366,975 25,458 292,340 330,731 - 1,210,834 Accrued interest receivables 17 1,879 179 21 9 - 2,105 Other assets 3,140 4,723 - - - 4,364 12,227 Total Financial Assets 207,601 480,267 80,760 405,472 408,556 84,203 1,666,859

Financial Liabilities Deposits 753,334 316,412 125,532 46,951 - - 1,242,229 Interbank and money market items 7,947 36,930 920 66 7,477 - 53,340 Liability payable on demand 11,598 - - - - - 11,598 Financial liabilities designated at fair value through profit or loss - 359 616 1,138 - - 2,113 Debts issued and borrowings - 37,323 633 6,438 25,909 - 70,303 Other liabilities 5,536 3,033 614 207 10 3,330 12,730 Total Financial Liabilities 778,415 394,057 128,315 54,800 33,396 3,330 1,392,313 Liquidity - net (570,814) 86,210 (47,555) 350,672 375,160 80,873 274,546

Annual Report 2011 212 Financial Report

(Million Baht) Consolidated 2010 Less than 6 months Over 1 Year Over No At call 6 months to 1 Year to 5 Years 5 Years Maturity Total Financial Assets Cash - - - - - 32,457 32,457 Interbank and money market items 15,041 81,883 695 - - - 97,619 Investments 885 9,350 39,263 122,481 66,223 11,359 249,561 Loans to customers 184,673 335,940 24,975 272,145 259,248 - 1,076,981 Accrued interest receivables 16 1,215 164 18 4 - 1,417 Other assets 836 3,390 - - - 5,140 9,366 Total Financial Assets 201,451 431,778 65,097 394,644 325,475 48,956 1,467,401

Financial Liabilities Deposits 748,278 158,301 91,826 101,631 - - 1,100,036 Interbank and money market items 4,812 22,122 231 31 5,868 - 33,064 Liability payable on demand 21,622 - - - - - 21,622 Financial liabilities designated at fair value through profit or loss - 2,918 169 3,069 - - 6,156 Debts issued and borrowings - 55,480 1,051 1,779 30,622 - 88,932 Other liabilities 6,715 665 309 465 9 3,690 11,853 Total Financial Liabilities 781,427 239,486 93,586 106,975 36,499 3,690 1,261,663 Liquidity - net (579,976) 192,292 (28,489) 287,669 288,976 45,266 205,738 Annual Report 2011 Financial Report 213

(Million Baht) The Bank 2011 Less than 6 months Over 1 Year Over No At call 6 months to 1 Year to 5 Years 5 Years Maturity Total Financial Assets Cash - - - - - 53,209 53,209 Interbank and money market items 8,548 96,474 5,213 - - - 110,235 Investments 45 5,194 48,252 100,418 2,055 19,238 175,202 Loans to customers 191,408 369,000 20,419 290,486 330,006 - 1,201,319 Accrued interest receivables - 1,896 - - - - 1,896 Other assets 3,140 1,853 - - - 3,706 8,699 Total Financial Assets 203,141 474,417 73,884 390,904 332,061 76,153 1,550,560

Financial Liabilities Deposits 754,870 316,507 125,532 46,951 - - 1,243,860 Interbank and money market items 11,383 36,930 920 66 7,477 - 56,776 Liability payable on demand 11,598 - - - - - 11,598 Financial liabilities designated at fair value through profit or loss - 359 616 1,138 - - 2,113 Debts issued and borrowings - 37,947 633 6,438 25,909 - 70,927 Other liabilities 2,809 3,037 614 207 10 3,330 10,007 Total Financial Liabilities 780,660 394,780 128,315 54,800 33,396 3,330 1,395,281 Liquidity - net (577,519) 79,637 (54,431) 336,104 298,665 72,823 155,279

Annual Report 2011 214 Financial Report

(Million Baht) The Bank 2010 Less than 6 months Over 1 Year Over No At call 6 months to 1 Year to 5 Years 5 Years Maturity Total Financial Assets Cash - - - - - 32,456 32,456 Interbank and money market items 15,076 81,720 - - - - 96,796 Investments 459 7,189 38,474 115,372 4,267 2,622 168,383 Loans to customers 181,331 337,122 20,518 270,102 258,635 - 1,067,708 Accrued interest receivables - 1,225 - - - - 1,225 Other assets 836 1,267 - - - 4,515 6,618 Total Financial Assets 197,702 428,523 58,992 385,474 262,902 39,593 1,373,186

Financial Liabilities Deposits 750,348 158,424 91,826 101,631 - - 1,102,229 Interbank and money market items 6,745 22,122 231 31 5,868 - 34,997 Liability payable on demand 21,616 - - - - - 21,616 Financial liabilities designated at fair value through profit or loss - 2,918 169 3,069 - - 6,156 Debts issued and borrowings - 56,090 1,051 1,779 30,622 - 89,542 Other liabilities 5,160 667 309 465 9 3,690 10,300 Total Financial Liabilities 783,869 240,221 93,586 106,975 36,499 3,690 1,264,840 Liquidity - net (586,167) 188,302 (34,594) 278,499 226,403 35,903 108,346

Annual Report 2011 Financial Report 215

45 FAIR VALUE OF FINANCIAL INSTRUMENTS Fair value is the estimated value that the Bank and its subsidiaries could receive from the sale of financial assets, or the estimated cost of redeeming their financial liabilities. Fair values are based on market value, or estimated values derived from using general market principles of calculation. The following is a summary of carrying amounts and estimated fair values of financial assets and liabilities and off-balance sheet items as of 31 December 2011 and 2010. (Million Baht) Consolidated 2011 2010 Carrying Carrying Amount Fair value Amount Fair value Financial Assets Cash 53,211 53,211 32,457 32,457 Interbank and money market items - net 111,969 111,969 97,560 97,560 Investments - net 264,143 272,192 251,080 255,708 Investments in subsidiaries and associates - net 152 152 138 138 Loans to customers and accrued interest receivables - net 1,172,596 1,172,596 1,041,566 1,041,566 Other assets 12,227 12,227 9,366 9,366 Total Financial Assets 1,614,298 1,622,347 1,432,167 1,436,795

Financial Liabilities Deposits 1,242,229 1,242,229 1,100,036 1,100,036 Interbank and money market items 53,340 53,340 33,064 33,064 Liabilities payable on demand 11,598 11,598 21,622 21,622 Financial liabilities designated at fair value through profit or loss 2,113 2,113 6,156 6,156 Debts issued and borrowings 70,303 70,690 88,932 89,716 Other liabilities 12,730 12,730 11,853 11,853 Total Financial Liabilities 1,392,313 1,392,700 1,261,663 1,262,447 Annual Report 2011 216 Financial Report

(Million Baht) The Bank 2011 2010 Carrying Carrying Amount Fair value Amount Fair value Financial Assets Cash 53,209 53,209 32,456 32,456 Interbank and money market items - net 110,205 110,205 96,768 96,768 Investments - net 159,907 159,959 168,115 168,184 Investments in subsidiaries and associates - net 14,127 14,127 15,583 15,583 Loans to customers and accrued interest receivables - net 1,163,915 1,163,915 1,033,347 1,033,347 Other assets 8,699 8,699 6,618 6,618 Total Financial Assets 1,510,062 1,510,114 1,352,887 1,352,956

Financial Liabilities Deposits 1,243,860 1,243,860 1,102,229 1,102,229 Interbank and money market items 56,776 56,776 34,997 34,997 Liabilities payable on demand 11,598 11,598 21,616 21,616 Financial liabilities designated at fair value through profit or loss 2,113 2,113 6,156 6,156 Debts issued and borrowings 70,927 71,314 89,542 90,326 Other liabilities 10,007 10,007 10,300 10,300 Total Financial Liabilities 1,395,281 1,395,668 1,264,840 1,265,624 The following methods and assumptions were used by the Bank in estimating fair values of financial assets and liabilities as disclosed herein: The values of cash, interbank and money market items (assets and liabilities), other assets, deposits, liabilities payable on demand, financial liabilities designated at fair value through profit or loss and other liabilities are stated at their carrying values on the statements of financial position. Annual Report 2011 Financial Report 217

The fair values of held-for-trading investments and available-for-sale investments are stated according to the Bank’s accounting policies mentioned in Note 10. The fair values of held-to-maturity investments is estimated by using market values. The fair value of general investments and investments in subsidiaries and associates are stated at cost, net of allowance for their impairment. The fair values of loans to customers and accrued interest receivables are based on the carrying values of loans to customers and accrued interest receivables, net of deferred revenue, allowance for doubtful accounts and revaluation allowance for debt restructuring. The fair values of debts issued and borrowings are estimated by using market values.

46 RECLASSIFICATION OF ACCOUNTS Financial statements as at 31 December 2010 have been reclassified to be presented in order to comply with Thai Financial Reporting Standards and the Bank of Thailand (BoT) notification number Sor Nor Sor 11/2553, directive dated 3 December 2010, regarding “The preparation and announcement of the financial statements of commercial banks and holding companies which are parent company of group of companies offering financial services”.

CORPORATE GOVERNANCE

219 Report of the Corporate Governance Committee 220 Report of the Human Resources and Remuneration Committee 221 Corporate Governance 254 Dividend Policy 255 Factors Affecting Investment Decisions Annual Report 2011 Corporate Governance 219

REPORT OF THE CORPORATE GOVERNANCE COMMITTEE

The Corporate Governance Committee of KASIKORNBANK the Office of the Securities and Exchange Commission, PCL comprises four directors of the Bank: Pol. Gen. Pow Sarasin, the Capital Market Supervisory Board and the Bank Non-Executive Director, Chairman of the Corporate Governance of Thailand. Committee; Mr. Sukri Kaocharern, Non-Executive Director; • Reviewing practices of the Bank under the criteria of Professor Dr. Yongyuth Yuthavong, Independent Director; and Corporate Governance Report of Thai Listed Companies, Mr. Hiroshi Ota, Independent Director. The main responsibilities by the Thai Institute of Directors Association. of the Committee are to oversee the Bank’s business practices • Endorsing guidelines of the Corporate Governance in compliance with the Statement of Corporate Governance Report and Corporate Social Responsibility Activities Principles, laws and regulations, to ensure effective practice of Report in the Annual Report. corporate governance principles by the Bank, and to supervise Corporate Social Responsibility (CSR). Five meetings were In 2011, the Bank was presented with the SET Award held in 2011, which covered a large area of the Bank’s activities of Honor for continuous excellence in Corporate Governance in accordance with the Committee’s duties and responsibilities, Report 2008 - 2011 and Best Investor Relations Award, and can be summarized as follows: presented by the Stock Exchange of Thailand and Money • Endorsing a strategic plan and activities to enhance & Banking magazine at the “SET Awards 2011” ceremony. good corporate governance. Emphasis has been placed The Bank also achieved the recognition level of “Excellent” on the maintenance of corporate governance standards from Corporate Governance Report of Thai Listed Companies of the Bank, and the establishment of corporate in 2011, organized by the Thai Institute of Directors Association, governance as an organizational culture, by regularly in addition to special commendation for exemplary performance communicating the Statement of Corporate Governance with an “Excellent” score from quality assessment of Annual Principles and Code of Conduct to all directors, General Meeting arrangement among listed companies executives and employees via various channels. in 2011 for the sixth consecutive year, organized by the In addition, a CG alert system was developed for Thai Investors Association in cooperation with the Office of the directors and executives, in order to minimize the Securities and Exchange Commission and the Thai Listed compliance risk. This year, the KGroup CG Index Companies Association. The Bank was also honored with project was initiated for use as the index to monitor the 2011 NACC Integrity Award, which was awarded for and assess the corporate governance practices of the second time, from the National Anti-Corruption Commission. the Bank, K Companies and P Companies. The Bank strongly believes that its continued transparent • Commenting on and recommending the action plan and fair business undertakings will contribute to long-term and related activities of KASIKORNBANKGROUP. business sustainability and create confidence among • Reviewing the Statement of Corporate Governance all shareholders and stakeholders. Principles, Charters of the Board of Directors and Board Committees, as well as the Statement of Business Conduct and Code of Conduct, and KASIKORNBANKGROUP Disclosure Policy, Pol. Gen. keeping them up-to-date, in accordance with the ongoing business undertakings of the Bank and in line with the laws, international practices and best practices, (Pow Sarasin) as prescribed by the Stock Exchange of Thailand, Chairman, Corporate Governance Committee Annual Report 2011 220 Corporate Governance

REPORT OF THE HUMAN RESOURCES AND REMUNERATION COMMITTEE

The Human Resources and Remuneration Committee Concerning the nomination of the Chief Executive Officer of KASIKORNBANK PCL comprises four directors, or President when necessary, the Committee considers suitable namely Mr. Somchai Bulsook, independent director, persons from the list in the succession plan. The qualifications as Chairman, Dr. Abhijai Chandrasen, non-executive director, of candidates for director and senior executive positions Professor Dr. Pairash Thajchayapong, independent director, have been regularly reviewed. and Ms. Kobkarn Wattanavrangkul, independent director, as members. The Committee held 6 meetings in 2011. Upon reviewing the remuneration for directors and senior executives, as disclosed in the Annual Report, According to its Charter, the Human Resources the Human Resources and Remuneration Committee and Remuneration Committee has the duties and responsibilities deemed it commensurate with the scope of their duties for formulation of human resource policy, director and senior and responsibilities, taking into consideration such factors executives nomination, review of the Board of Directors as the Bank’s performance results, performance assessment remuneration and recommendation on compensation for as well as the overall business and economic environment. the senior executives specified by the policy in line with the business direction of the Bank, as well as recommendation of the executive succession plan.

As for the nomination of directors, members of Board committees and senior executives, the Human Resources and Remuneration Committee is responsible for nominating qualified persons with primary qualifications specified by the Bank and not having characteristics prohibiting them from holding a directorship. In addition, factors to be taken into consideration include the appropriate proportion, size and composition of the Board as well as compliance with regulatory requirements, the Bank’s Articles of Association (Mr. Somchai Bulsook) and the Statement of Corporate Governance Principles. Chairman, Human Resources and Remuneration Committee Annual Report 2011 Corporate Governance 221

CORPORATE GOVERNANCE

1. Rights of Shareholders 2. Before the General Meeting of Shareholders, the Bank In recognizing the importance and rights of shareholders, arranged delivery of the meeting notice to sharehoders, the Board of Directors makes every effort to treat shareholders with information on the date, time, and venue equally and fairly, as specified under the Articles of Association of the meeting, a map of the meeting site, and the meeting of the Bank and related laws. The basic legitimate rights of agenda, in accordance with the law, the Stock Exchange shareholders include the right to participate in shareholders of Thailand’s requirements, and the Bank’s Articles of meeting, the right to appoint a proxy to participate in and vote Association. In addition, proxy forms and a complete at shareholders meeting, the right to vote for the appointment set of supporting documents for the meeting agenda, or removal of individual directors, the right to vote on the annual together with the Bank’s Articles of Association related appointment of independent auditors and the setting of annual to the meeting, were sent to shareholders for their audit fees, and the right to vote on various other businesses of consideration more than 14 days prior to the meeting date. the Bank. Shareholders rights also include eligibility to receive Along with the meeting notice, shareholders were sent dividend payments, the right to give opinions and enquire into sufficient information to allow them to vote on every business matters of the Bank during shareholders meeting, agenda item, each of which was identified clearly as and the right to receive sufficient information in a timely manner. either for acknowledgment, or for approval, or for Apart from the basic rights above, the Board of Directors consideration, together with sufficient and clear comments emphasizes the disclosure of accurate, complete, timely, by the Board of Directors to help shareholders in their and transparent information to shareholders. Information updates voting decisions. All of the information sent in document are regularly provided on the Bank’s website in four languages: form was also posted on the Bank’s website Thai, English, Chinese, and Japanese, as well as to the public (www.kasikornbankgroup.com) more than 30 days prior media. In 2011, the Bank took the following measures to to the meeting date, to ensure that shareholders received facilitate and promote the rights of shareholders: the information in a convenient and timely manner. 1. The Board of Directors Meeting No. 2/2011, Moreover, the meeting notice was published in the on February 24, 2011, resolved to schedule the 2011 Thai daily newspaper for at least 3 consecutive days, Annual General Meeting of Shareholders on April 7, at least 3 days before the meeting date. The Notice of 2011. The resolution was published on the information the General Meeting of Shareholders and the meeting dissemination system of the Stock Exchange of Thailand documentation in English were sent to foreign starting the day the resolution was passed. shareholders and posted on the Bank’s website.

Scene from the 99th General Meeting of Shareholders Dissemination of information via KBank website prior to the Meeting Annual Report 2011 222 Corporate Governance

For those attending the General Meeting of informed of the voting and vote-counting procedure. Shareholders or their proxies, the Bank gave detailed The counting of votes was carried out in a transparent information as to which documents were necessary for manner. The Bank adopted the Thailand Securities shareholders to present on the meeting date in order to Depository Co., Ltd. system to facilitate vote counting. have the right to attend the meeting, including a proxy One share equaled one vote; approval of a resolution form per the Ministry of Commerce designation. was based on the majority of votes, except for Also included was a list of independent directors, certain resolutions which required the approval of the Chairman of the Board, the Chief Executive Officer no less than two-thirds of all votes of those and President, and any other persons whom the attending the meeting, or three-fourths of all votes shareholders might wish to appoint as proxy, to cast of those attending the meeting and casting their votes. votes at the meeting on his/her behalf. This practice was in line with the Bank’s Articles of 3. On the meeting date, the Bank arranged for Association and the law. shareholder registration to begin more than one hour In the 99th General Meeting of Shareholders, prior to the meeting schedule. Preparation of the venue the Chairman of the Board acted as Chairman of and an appropriate number of greeters were also the meeting, which was also attended by the Chief arranged to assist shareholders. In 2011, the Bank Executive Officer and President and the Chairmen used the AGM Voting Service, organized by of all Board Committees. Altogether, there were Thailand Securities Depository Co., Ltd. A barcode 13 directors in attendance: system was used for shareholder registration 1. Mr. Banyong Lamsam and proxy registration as in the previous year, Chairman allowing for a quick and efficient registration process. 2. Pol. Gen. Pow Sarasin Printed ballots were handed out to each shareholder Vice Chairman and Chairman of the Corporate for voting on each agenda item. In addition, the Bank Governance Committee showed video presentations of the voting procedure, 3. Mr. Banthoon Lamsam to clarify and enhance shareholder understanding of Director and Chief Executive Officer and President the process. 4. Mr. Sukri Kaocharern 4. Before the meeting commenced, the Chairman of Director and Chairman of the Risk Management the meeting announced that all shareholders had been Committee

Scene from the registration desk prior to the Meeting KBank Board of Directors at the Meeting Annual Report 2011 Corporate Governance 223

5. M.R. Sarisdiguna Kitiyakara beginning the day they were notified of the meeting Independent Director and Chairman of and the meeting agenda until one week before the Audit Committee the shareholders meeting date. These criteria were 6. Mr. Somchai Bulsook disclosed via the information dissemination system of Independent Director and Chairman of the Human the Stock Exchange of Thailand and the Bank’s website. Resources and Remuneration Committee Shareholders who entered the meeting after it had 7. Professor Khunying Suchada Kiranandana commenced were allowed to vote for agenda items Independent Director that were still under consideration. 8. Professor Dr. Yongyuth Yuthavong 6. So as to provide the highest satisfaction to Independent Director shareholders, the Bank continues to publish 9. Dr. Abhijai Chandrasen the quarterly newsletter “Sarn Samphan”, Director and Legal Adviser providing information and news on the overall 10. Ms. Elizabeth Sam economy, stock market, investments, Independent Director and other information that may be beneficial 11. Professor Dr. Pairash Thajchayapong to shareholders. The newsletter can be found Independent Director on the Bank’s website. 12. Mr. Hiroshi Ota Independent Director 2. Equitable Treatment of Shareholders 13. Ms. Kobkarn Wattanavrangkul Recognizing the importance of the equitable treatment Independent Director of shareholders, the Board of Directors established 5. During the meeting, the Chairman of the meeting a Corporate Governance Policy based on shareholders offered all shareholders an equal opportunity to give rights and the equal and fair treatment of all shareholders, suggestions and ask questions within an appropriate and undertook the following tasks: time frame, and allowed directors in charge of topics 1. To promote good governance, the Bank provided that were raised to clarify and provide complete shareholders with the opportunity, before the information to shareholders. Moreover, shareholders shareholders meeting, to propose matters for inclusion were given the opportunity to submit questions as agenda items, and also the opportunity to propose concerning meeting agenda items in advance, qualified candidates having no prohibited characteristics

Scene from the meeting room “Sarn Samphan” newsletter for KBank shareholders Annual Report 2011 224 Corporate Governance

for election as director at the General Meeting of present at the meeting after the meeting was adjourned, Shareholders. Both options are under the specified arranged to have officers from a legal advisory firm criteria and process of the Board and relevant regulatory verify the vote counting, and asked shareholder agencies. Guidelines on the proposing procedure volunteers to witness ballot counts. Also, the Bank and shareholders rights were provided to shareholders kept the ballots for future reference. through the information dissemination system of 5. Comprehensive meeting minutes were recorded. the Stock Exchange of Thailand and disclosed on They included significant details, e.g., meeting the Bank’s website, including the Bank’s decisions resolutions, voting results (divided into approval, and reasons related to proposed agenda items opposition, abstention, or invalid ballots for each or candidates proposed for the meeting. In 2011, agenda item), questions, explanations, and opinions the Bank posted this notification 5 months prior to of the meeting. The minutes of the shareholders the meeting; shareholders proposed no items meeting were sent to regulatory agencies within to be included in the agenda, nor did they propose 14 days of the meeting, and to shareholders for their any candidates for election as directors. acknowledgment, also available on the Bank’s 2. The Bank arranged for the shareholders meeting to website. Moreover, the Bank arranged for the meeting be conducted in a transparent and efficient manner, to be recorded on video for future use. in line with the Bank’s Articles of Association and 6. The Bank has established internal regulations to related laws. The consideration of items and voting supervise the use of inside information and securities were conducted in accordance with the announced and stock futures trading by directors and employees, agenda. This included consideration of the election of in compliance with the securities laws and Corporate directors individually and director remuneration, Governance Principles. The essence of the internal together with consideration of the annual appointment regulations is presented as follows: of independent auditors, setting of the audit fee, • All operational units must set up a system and other agenda items as specified in the meeting and manage their workplace, including maintaining notice. During the meeting, in addition to related inside information, to prevent disclosure to others. meeting documents, the Bank prepared video Inside information can be used and sent only by presentations and provided English translations persons who need to know or use that information for foreign shareholders. for their operations. 3. Shareholders unable to participate in the meeting • Directors and employees are prohibited from in person had the option to appoint proxies to buying, selling, transferring, or obtaining the transfer the meeting. Proxies could be any independent of securities and stock futures in any manner director, or the Chairman of the Board, or the Chief that may take advantage of outsiders by using inside Executive Officer and President, or any other person information that may have a significant impact on appointed to participate in voting on behalf of the price of securities and has not been disclosed the shareholder. Proxy forms were designed in such to the public or the Stock Exchange of Thailand. a way that shareholders were able to designate their Though they may have become aware of such preferred direction of voting. information in their capacity, either as directors 4. Ballots were used to vote on every agenda item. or employees of the Bank, such actions are To enable efficient and rapid vote counting, the Bank prohibited, whether to favor themselves or others, collected only the ballots of shareholders opposing or to reveal such information to others to act upon it or abstaining from each vote. To comply with or receive benefit thereof. the best practices for shareholders meeting, the Bank • The Bank has regulated that directors, officers in collected the ballots from all shareholders and proxies the position of Senior Executive Vice President or Annual Report 2011 Corporate Governance 225

equivalent and higher, and staff in the position of 7. The Bank has established directors and executives to Department Head or equivalent and higher in the report on their interests and related persons’ interests to Financial Accounting Management Department or the Corporate Secretary, for further submission to Financial Planning Department under the Financial the Chairman and the Chairman of the Audit Committee and Control Division, must report their ownership of as specified by the Securities and Exchange Act, securities issued by the Bank and stock futures and report on every change in such reports. with underlying Bank stock, including those under The reports for 2011 were presented to the Chairman ownership of their spouses and minor children. and the Chairman of the Audit Committee. Moreover, they must report every change in their holding of securities issued by the Bank and stock 3. Roles of Stakeholders futures with underlying Bank stock, i.e. by any The Bank places particular emphasis on the equal rights of purchase, sale, transfer, or obtaining the transfer all stakeholders, both internal stakeholders, i.e., shareholders, of securities and stock futures, as regulated by the Board of Directors, employees of the Bank and subsidiary the Office of the Securities and Exchange companies; and external stakeholders, i.e., customers, Commission, and also must have a copy of their counterparties, competitors, creditors, public sector and other ownership report of securities submitted to the related agencies, as well as the community, the environment Corporate Secretary who shall collectively provide and the society at large, including human rights. such reports to the Board of Directors Meeting. In order to ensure the rights of stakeholders, the Bank Furthermore, the Bank requires that all personnel established a Statement of Business Conduct and a Code of who have access to significant inside information, Conduct for all employees, which have been disseminated under the above criteria, report their ownership through the Bank’s website and internal communication media of securities issued by the Bank and stock futures such as the KASIKORNBANKGROUP newsletter, intranet and with underlying Bank stock, including those under KASIKORNTV - the Bank’s closed-circuit TV network, for strict the possession of their spouses and minor children, adherence by directors, executives, and employees at all levels. to the Bank’s Compliance Department. In addition, the Bank assigned the Compliance Department of • Concerning the supervision of securities and stock the Compliance and Audit Division to monitor the performance futures trading and prevention of the use of inside of all employees in compliance with the Code of Conduct, information, the Bank has stipulated a silent period and assigned the Corporate Governance Unit under the Office for securities and stock futures trading by directors of Corporate Secretary, Corporate Secretariat Division, and related staff, including their spouses and minor to oversee all governance issues of the Bank and to report to children, prohibiting trading of securities issued the Corporate Governance Committee for acknowledgement. by the Bank and stock futures with underlying Realizing the importance of stakeholders involvement, Bank stock starting one month prior to the Bank’s the Bank provides communication channels to receive suggestions, disclosure of financial statements or quarterly useful information, or complaints of improper actions from performance, and lasting until the second day stakeholders, which are then conveyed to the Bank’s Board after the information has been disclosed. Internal of Directors in accordance with the guidelines disclosed on regulations on the prevention of the use of inside the Bank’s website. For transparency purposes, as well as for information are disseminated at the beginning the protection of the rights of information providers, the Bank has of each year and quarterly to directors and related established a policy for the receipt of information or complaints, staff through various operating channels of with specific channels for complaints, management procedures, the Bank, including regular monitoring of actions. and measures for the protection of information providers’ rights In the past year, directors and related staff strictly and the protection of confidential information. Only authorized adhered to internal regulations. persons have access to this confidential information and are Annual Report 2011 226 Corporate Governance

able to investigate complaints. Independent directors supervise Counterparties: The Bank respects compliance with the consideration and reporting to the Board of Directors. contracted terms and conditions in trade, in fair and acceptable In cases where stakeholders are affected by a disregard to competition, and refrains from all mala fide practices. their legitimate rights, the Bank has enforcement measures to Competitors: The Bank observes fairness in competition ensure them fair treatment. and does not practice any mala fide methods that are Shareholders: The Bank is determined to achieve good deleterious to competitors. operating performance, sustainable growth, and competitiveness, Creditors: The Bank abides by lending terms and conditions with due consideration given to both current and future risk and all legitimate duties to creditors, debenture holders, and factors, in order to maximize shareholders value over the long depositors. The Bank also gives clear explanations to customers on term. The Bank discloses all information in a fair and transparent all of the possible risks involved with non-deposit financial services. manner, and makes every effort to protect the Bank’s assets Responsibility to the Community, the Environment, and uphold its reputation. and the Society: The Bank operates as a good financial The Board of Directors: The Board of Directors is fully institution and conducts business according to the Statement aware of the authority, duties, and responsibilities of directors, of Corporate Governance Principles. The Bank believes that as well as the rights of stakeholders, and undertakes measures environmental and social responsibilities are part of sustainable to ensure that these legitimate rights are provided, and that development. The Board of Directors has established all stakeholders are treated equally and fairly. a Corporate Social Responsibility (CSR) Policy as follows: Employees: Employees are valuable assets of the Bank. • To strictly adhere to the Statement of Business Conduct, The Bank continues to seek capable and experienced and to participate in social development and environmental personnel in line with its growth and the demands of protection the organization. Necessary training programs are • To encourage employees at all levels to strictly abide by continuously provided to enhance employees’ capabilities, the Code of Conduct and CSR Principles and appropriate remuneration - comparable to that of other • To launch CSR activities for the benefit of all stakeholders leading companies - is offered. Favorable business culture and • To arrange workplaces with an emphasis on safety, atmosphere are promoted in the workplace, together with fair, occupational health, environmental concerns, equal treatment, and respect for the honor, dignity, and individual and facilitation for employees and customers rights of all employees. The Bank recognizes the need for • To promote environmental preservation and contribution proper welfare and security for employees, and provides to society benefits such as provident funds, scholarships for employees The Bank acts as a good citizen, is non-partisan, and their children, annual medical check-ups, as well as and is non-aligned with any political party. The Bank bears in safety procedures such as fire drills and the installation of fire mind its role as part of the society at large and its responsibility to prevention systems, etc. assist society and promote activities that benefit the community, Customers: The Bank aims to promote customer the society, and the environment, in order to enhance the living satisfaction by offering diverse, complete, and high-quality standards of the people. The Bank recognizes the importance of financial products and services, in response to the needs and demonstrates concern for sound environmental protection of customers. The Bank gives due attention to and holds through continuing efforts and activities for enhanced energy itself accountable to customers, and, more importantly, efficiency and environmental conservation; it also organizes gives high priority to the protection of their confidential training courses and encourages employee involvement through information. Customers are provided with explanations of the expression of opinions and participation in activities related to the risks related to the use of various financial services, the development of the community and environment on a regular and are given the opportunity to express opinions through basis. In 2011, for instance, the Bank launched the “Helping Each responsible parties that the Bank has assigned to handle Other in the Thai Spirit” project wherein employees voluntarily customer complaints. joined hands to give assistance to flood victims. The “Green at Annual Report 2011 Corporate Governance 227

Heart: 1 Person, 1 Idea Worth Baht 8 for a Green Society” was 4. Disclosure and Transparency implemented to raise the environment awareness of the Bank Realizing the importance of transparent information staff and the community. Details are included under the heading disclosure, the Bank has supervised and set up Corporate Social Responsibility (CSR) Activities in this annual report. the KASIKORNBANKGROUP Disclosure Policy, approved The Bank also specified other procedural guidelines, by the Board of Directors. The objective of this policy as follows: is to ensure that disclosures of KGroup’s financial Fairness: The Bank demonstrates fairness to all parties and non-financial information to shareholders, investors, having business relationships with the Bank, and does its best to analysts, regulatory agencies, and the general public are avoid any bias or events that would lead to conflicts of interest. accurate, complete, timely, equal, transparent, consistent, Ethics: The Bank adheres to its Statement of Business and in accordance with all applicable laws, regulatory Conduct and pursues every business endeavor with integrity. requirements, and criteria. Professionalism: The Bank maintains professional On May 18, 1998, the Bank established the Investor standards, aiming high for superb quality integrated with modern Relations and Shareholders Services Unit under the Executive and sophisticated technology. Services Department, Corporate Secretariat Division. In 2007, Responsiveness: The Bank has the readiness to respond under a change in organizational structure, the unit was to the needs of its customers and society, as well as to renamed the Investor Relations Unit, under the Office of changes in the economy and technology, both at present Corporate Secretary, with the objective and responsibility and in the future. of handling investor relations activities. Responsibilities Discipline and Compliance: The Bank pursues business of the Investor Relations Unit also include setting up annual with discipline and ethical principles, and certifies that its investor relations plans and providing timely and accurate business operations comply with the law, the Statement information to shareholders, investors, analysts, and credit of Business Conduct, and the Code of Conduct for rating agencies, both local and international, so as to employees, such as protection of intellectual property rights enhance the Bank’s image and reputation for reliability and copyright. A software compliance policy was implemented among investors and deliver efficient service to the Bank’s to ensure that only copyrighted software is used in the Bank’s shareholders. The Shareholder Relationship Management Unit, information system. A prohibition against offering or receiving under the Office of Corporate Secretary, is responsible for bribes for business benefit, etc. has been incorporated the management and supervision of shareholder rights, into the Code of Conduct. as well as strengthening relationships with the Bank’s minor

Dissemination of information on investor relations via KBank website 2010 Annual Report Annual Report 2011 228 Corporate Governance

shareholders. The unit has developed a strategic plan to create, In 2011, the Bank adequately disclosed important financial maintain, and promote cordial relationships with minor information in its financial statements. The disclosures were in shareholders. This has enhanced the image and credibility of line with regulations of the Bank of Thailand, Stock Exchange of the Bank as an exemplary organization with respect to the care Thailand, Office of the Securities and Exchange Commission, and services provided to minor shareholders. Marketing and Financial Reporting Standards. Such information was also activities were organized to build connections with shareholders disseminated via the SET Community Portal and the Bank’s and provide them useful information, such as panel discussions website. The financial statements were audited by certified on the economy, stock market and investment, publication of public accountants and were endorsed by the Audit Committee quarterly shareholder newsletters on the Bank’s website containing before disclosure to shareholders; the Board of Directors economic and investment news, distribution of documents of the Bank also disclosed its report of the responsibilities notifying shareholders of services such as returned cheques, for financial reports in the annual report. Moreover, the Bank changing share certificates, and the e-Dividend service. has published unreviewed/undudited quarterly financial These activities received positive feedback from shareholders. statements, reviewed/audited financial statements and Basel II In addition, the Bank formulated and imposed the Pillar 3 Disclosures, as well as other non-financial information KASIKORNBANKGROUP Disclosure Policy for dissemination such as the Management Discussion and Analysis (MD&A) of significant information, authorizing the Chairman, and information on the Bank’s corporate governance for Chief Executive Officer, President, Domain Coordinators, the benefit of shareholders, investors, and analysts. In addition, Chief Financial Officer, or Corporate Secretary to consider the Bank has periodically evaluated the effectiveness of its and make decisions on the content of significant information disclosure procedures. for public disclosure. Any one of them may disclose information The Bank enforces a 7-day silent period before the by him/herself, or to assign relevant parties to handle this task. quarterly operating results are reported to the Stock Exchange The executive entrusted as Chief Investor Relations Officer of Thailand. During this period, no information related to has the authority to hold press conferences or to disseminate the Bank’s performance is revealed to shareholders, investors, significant information related to KGroup, and to reply to and analysts. Company visits/participation in one-on-one questions raised by shareholders, investors, and securities meetings/group analyst meetings/replies to questions related to analysts. The Public Relations Unit coordinates with the Bank’s operating results do not occur during this period. information owners in disseminating significant information This practice is regarded as a key policy of the Bank, to ensure related to KGroup. that operations of units are consistent with the Bank’s

บริการจายเงินปนผล เขาบัญชีธนาคาร

Cash Benefit Transferred into Bank Account

Thailand Securities Depository Co., Ltd.

งาย… สะดวก… รวดเร็ว…

• เงินเขาบัญชี ณ วันกำหนดจาย • ไดรับหนังสือรับรองการหักภาษี ณ ที่จาย เปนหลักฐานเหมือนเดิม

ไมเสียคาธรรมเนียมใดๆ

บริการนี้รวมถึง เงินปนผล ดอกเบี้ย และสิทธิอื่นๆ ที่เปนตัวเงิน

บริษัท ศูนยรับฝากหลักทรัพย (ประเทศไทย) จำกัด www.tsd.co.th / TSD Call Center 0-2229-2888 / Email: [email protected] e-Dividend service and KBank new share certificate Luncheon Talk held by KBank Executive for fund managers Annual Report 2011 Corporate Governance 229

procedures, which are always in compliance with the Statement 4. Newspapers of Corporate Governance Principles. In this way, the Bank 5. Magazines and journals can ensure that its disclosures are transparent and equally 6. Televisions accessible to all. 7. KBank IR/PR News For disclosures on important information, the Bank uses 8. KBank website (www.kasikornbankgroup.com) various communication channels, communicating regularly Information available in four languages: Thai, English, through public media channels so that the Bank’s shareholders Chinese, and Japanese and stakeholders have thorough access to information. 9. Company Visits/One-on-One Meetings Information outlets include: 10. Non-deal Roadshows, both in Thailand and overseas 1. The Stock Exchange of Thailand 11. Analyst Meetings 1) The Annual Report 12. Press Conferences 2) The Bank’s Financial Statements 13. Notice and meeting documents sent by mail to 3) Notification of the Board of Directors’ Resolutions shareholders and Other Matters In 2011, the Bank’s executives and Investor Relations 2. The Office of the Securities and Exchange Commission Unit met with various groups in the following settings to provide 3. The Ministry of Commerce information:

Type of Meeting No. of Events No. of Companies No. of Persons One-on-One Meetings 150 255 321 Conference Calls 38 39 54 Group Analyst and Investor Meetings 5 232 273 Investor Conferences 4 61 82 Non-deal Roadshows 7 146 277 Total 204 733 1,007 In 15 of the above events, a total of 188 persons from 132 companies met with the Bank’s Chief Executive Officer and President. Some companies met with the Bank on more than one occasion in each type of meeting.

CEO and President met analysts and fund managers at Analyst and Thai Fund Manager Analyst and Thai Fund Manager Meeting, KBank Head Office Meeting, KBank Head Office Annual Report 2011 230 Corporate Governance

In 2011, the Bank Investor Relations function was widely acclaimed Shareholder Relationship Management Unit: by analysts and investors, and received several awards, including: (Thai Investors and Shareholders) • Asia’s Best CEO (Investor Relations) and Best Investor E-mail: [email protected] Relations by a Thai Company from the 1st Asian Tel. 0 2470 2663 to 7 Excellence Recognition Awards 2011 of the Corporate Fax 0 2470 2747 Governance Asia magazine; Address: • Best for Investor Relations from the Corporate KASIKORNBANK PCL Head Office, Governance Polls in Thailand of Asiamoney magazine; 33rd Floor, Office of Corporate Secretary, • Best Investor Relations Award for listed company with Corporate Secretariat Division, market capitalization over Baht 10 billion, for the second 1 Soi Rat Burana 27/1, Rat Burana Road, consecutive year (2010 - 2011) from the SET Awards 2011 Rat Burana Sub-District, Rat Burana District, ceremony, organized by the Stock Exchange of Thailand Bangkok 10140, Thailand (SET) and Money & Banking magazine. The Bank Website: www.kasikornbankgroup.com has received this award for the fourth time; • Best Investor Relations Officer, for the third consecutive 5. Responsibilities of the Board of Directors year (2009 - 2011), based on SAA Awards for Listed 5.1 Structure of the Board of Directors Companies 2011, organized by the Securities Analysts Composition of the Board of Directors Association. The Bank’s Board of Directors comprises qualified persons Investors may contact the Bank at: who possess knowledge, ability, and experience beneficial to the Chief Investor Relations Officer: Bank. According to the company registration in the latest update Tel. 0 2470 2673 to 4 from the Ministry of Commerce, dated October 3, 2011, the Board Fax 0 2470 2680 of Directors of the Bank is composed of 13 members. The election Investor Relations Unit: of Board members follows the resolutions of the shareholders (Thai and Foreign Institutional Investors and Shareholders) meeting, as well as the laws and regulations and the Bank’s Articles E-mail: [email protected] of Association. The number of directors is appropriate for the Tel. 0 2470 6900 to 1 Bank’s business operations, and the composition is in conformity 0 2470 2659 to 62 with the Bank of Thailand’s notification on the “Governance of Fax 0 2470 2690 Financial Institutions” and the Capital Market Supervisory Board’s

A KBank executive presented with the Best Investor Relations Officer under KBank executives represented the Bank in receiving the SET Award of Honor for the SAA Awards for Listed Companies 2011, organized by the Securities Analysts Continuous Excellence in Corporate Governance Report and the Best Investor Relations Association, for the third consecutive year Award, from the SET Awards 2011 Annual Report 2011 Corporate Governance 231

notification on “Application for and Approval of Offer for Sale of 6. Ensuring that corporate information disclosures to Newly Issued Shares”. The Bank’s Board of Directors includes: regulatory agencies are in accordance with the laws • 1 Executive Director and regulations. • 5 Non-Executive Directors 7. Communicating with shareholders on their legitimate • 7 Independent Directors rights and on the Bank’s information. (accounting for 54 percent of the total number of 8. Assisting in Board activities. Board members) Binding agreements of the Bank must be signed by Qualifications of Independent Directors two authorized directors and affixed with the Company Seal. The Board of Directors Meeting No. 9/2011 on September 29, The primary authorized directors with signatory authority on behalf 2011, resolved to revise the definition of “Independent Director” of the Bank are Mr. Banyong Lamsam, or Mr. Banthoon Lamsam, to conform with the Principles of Good Corporate Governance of or Ms. Sujitpan Lamsam. Any of these persons must co-sign the Stock Exchange of Thailand, the requirements of the Bank with any of the following directors: Pol. Gen. Pow Sarasin, of Thailand on the “Governance of Financial Institutions”, or Mr. Sukri Kaocharern, or Dr. Abhijai Chandrasen. and the requirements of the Capital Market Supervisory Board, in order to maintain investor confidence and balance in good Corporate Secretary governance. The qualifications set by the Bank for “Independent The Bank appointed Ms. Tida Samalapa as Corporate Secretary. Director” have been defined more stringently than the criteria set She has suitable knowledge, qualifications, and experience to by the Capital Market Supervisory Board. They are as follows: perform this function. She also serves as Secretary to the Board 1. Holding not more than 0.5 percent of the Bank’s shares of Directors. The Office of Corporate Secretary, the Corporate with voting rights, or that of any subsidiary company, Secretariat Division, is a unit supporting the secretariat functions of associated company, major shareholder or controlling the Bank, consistent with the Statement of Corporate Governance person of the Bank, which shall be inclusive of the shares Principles for effective management of the Bank. The main duties held by any related person of such an independent director; and responsibilities of the Corporate Secretary include: 2. Neither being nor having been an executive director, 1. Providing basic advice pertaining to the laws and an employee, a staff member, an adviser who receives regulations governing commercial banking business a regular salary, or a controlling person of the Bank, and the Bank’s Articles of Association, as well as subsidiary company, associated company, subsidiary monitoring compliance on a regular basis and reporting company at the same level, major shareholder or any significant changes to the Board. controlling person of the Bank unless the foregoing 2. Arranging the shareholders meeting and the Board status has ended for more than 2 years; of Directors Meeting in accordance with the laws 3. Not being a person related by blood or registration under and regulations, the Bank’s Articles of Association, law, such as father, mother, spouse, sibling, or child, and related practices. including the spouse of a child, of other director, any 3. Preparing minutes of the shareholders meeting and the executive, major shareholder, controlling person or Board of Directors Meeting, and monitoring subsequent person to be nominated as a director, an executive or compliance with the resolutions of those meetings. a controlling person of the Bank or subsidiary company; 4. Preparing and keeping registrations of directors, annual 4. Neither holding nor having held a business relationship reports of the Bank, notices calling shareholders meeting, with the Bank, subsidiary company, associated company, notices calling directors meetings, minutes of the major shareholder or controlling person in a manner shareholders meeting and the Board of Directors Meeting. which may interfere with his/her independent judgement, 5. Keeping reports of interest filed by directors and and neither being nor having been a substantial shareholder executives, and presenting such reports as specified or a controlling person of any person having a business by the relevant laws. relationship with the Bank, subsidiary company, associated Annual Report 2011 232 Corporate Governance

company, major shareholder or controlling person unless business of the Bank or subsidiary company or not being the foregoing relationship has ended for more than 2 years. a substantial partner in the partnership, a director who is The aforementioned “business relationship” includes involved in management, an employee, a staff member, any normal business transaction, rental or lease of an adviser who receives a regular salary, or a shareholder immovable property, transaction relating to assets or holding more than 1 percent of shares with voting rights of services, or grant or receipt of financial assistance through a company undertaking any business the nature of which receiving or extending loans, guarantees, providing assets is the same as that of the Bank or subsidiary company as collateral, including any other similar actions, which result and which, in any material respect, is competitive with in the Bank or counterparty being liable to indebtedness business of the Bank or subsidiary company; payable to the other party in the amount of 3 percent 9. Not having any characteristics that prohibit the expression or more of the net tangible assets of the Bank or Baht of independent opinion towards the Bank’s business 20 million or more, whichever is lower. The amount of undertakings. such indebtedness shall be calculated according to The previous directorial records as an independent director the calculation method for the value of connected to be brought up for consideration shall comply with the above transactions under the Notification of the Capital Market criteria, except under exemption in accordance with the Supervisory Board concerning regulations in respect of Notification of the Capital Market Supervisory Board. an entering into connected transaction mutatis mutandis. Since 2011, no independent director has had a business The combination of such indebtedness shall include relationship with, or has acted as professional adviser of the Bank, indebtedness taking place during the course of 1 year subsidiary company, associated company, major shareholder, prior to the date on which such a business relationship or controlling person. with the person commences; 5. Neither being nor having been an auditor of the Bank, Term of Office subsidiary company, associated company, major The Board of Directors has a clearly established term of shareholder or controlling person, and not being office for directors in the Articles of Association and the Corporate a substantial shareholder, controlling person, or partner Governance Policy of the Bank. At each General Meeting of of an audit firm which employs auditors of the Bank, Shareholders, one-third of the directors - or the number nearest subsidiary company, associated company, major to one-third if their number is not a multiple of three - must retire shareholder, or controlling person unless the foregoing from office. The directors who have been in office the longest relationship has ended for more than 2 years; retire first. If there is any disagreement as to who shall retire, 6. Neither being nor having been any professional adviser it shall be decided by drawing lots. Retiring directors may be including legal adviser or financial adviser who receives re-elected. Members of the Board Committee, Audit Committee, an annual service fee exceeding Baht 2 million from Human Resources and Remuneration Committee, and Corporate the Bank, subsidiary company, associated company, Governance Committee shall hold office for a term of 3 years, major shareholder, or controlling person, and not being while members of the Risk Management Committee shall a substantial shareholder, controlling person, or partner hold office for a term of 2 years. of the professional adviser, unless the foregoing relationship has ended for more than 2 years; Directorship of the Board of Directors and Executives 7. Not being a director who has been appointed as in Other Companies a representative of the Bank’s director, major shareholder, The Board of Directors established guidelines that the Bank’s or shareholder related to the major shareholder; directors and executives may hold a directorship in no more than 8. Not undertaking any business the nature of which is 5 listed companies. They shall not hold the position of chairman, the same as that of the Bank or subsidiary company executive director, or director with signatory authority in more than and which, in any material respect, is competitive with 3 other business groups, in conformity with the criteria of Annual Report 2011 Corporate Governance 233

the Bank of Thailand and the Stock Exchange of Thailand. 9. Dr. Abhijai Chandrasen The details of directorships held by the Bank’s directors and Director executives in other companies are reported in the Annual Report 10. Ms. Elizabeth Sam under the heading Board of Directors and Executives, as well as Independent Director Directorship of Directors and Executives in Subsidiaries, 11. Professor Dr. Pairash Thajchayapong Associated, and Related Companies. At present, no director Independent Director or executive of the Bank holds a directorship in more than 3 listed 12. Mr. Hiroshi Ota companies, nor are any in the position of chairman, executive Independent Director director, or director with signatory authority in excess of 3 other 13. Ms. Kobkarn Wattanavrangkul business groups. Independent Director Separation of the Chairman and the Chief Executive Officer Responsibilities of the Board of Directors Positions The Board of Directors is responsible to the Bank’s The Chairman of the Board of Directors is not the same shareholders. Each director represents all shareholders person as the Chief Executive Officer. He is neither a regular and takes part in supervisory and regulatory functions in employee nor an executive of the Bank. The Bank has clearly the Bank’s operations, in an independent and impartial manner, set the scope of duties, responsibilities, and governance authority for the benefit of all shareholders and other stakeholders. in the Board of Directors Charter for each of the above positions. The Board has duties and responsibilities designated in In the event that the Chairman and the Chief Executive Officer the Board of Directors Charter as follows: are in any way related, the Board shall appoint a senior director 1. Supervising and managing the Bank so that it is as independent director to perform specific functions, where in accordance with the law and the Bank’s objectives, necessary, that would be expected of an independent Chairman. the Articles of Association, and the resolutions of shareholders meeting. 5.2 Board of Directors 2. Approving the Vision, Mission, Core Values, The members of the Board of Directors are qualified and Statement of Business Conduct. persons who have knowledge, ability, and experience beneficial 3. Reviewing and discussing the Management’s proposed strategic to the Bank. They are: options and approving major decisions with respect to 1. Mr. Banyong Lamsam KASIKORNBANK FINANCIAL CONGLOMERATE direction Chairman and policies. The Board also reviews and approves 2. Pol. Gen. Pow Sarasin the Annual Business Plan, Capital Expenditure Budget, Vice Chairman and performance goals proposed by Management. 3. Mr. Banthoon Lamsam 4. Monitoring the Bank’s performance and progress toward Executive Director achieving set objectives, as well as compliance with 4. Mr. Sukri Kaocharern the laws, regulations, and related policies. Director 5. Supervising and reviewing the balance between the Bank’s 5. Mr. Somchai Bulsook short-term and long-term objectives. Independent Director 6. Ensuring that the Bank shall vest authority in the Chief 6. Ms. Sujitpan Lamsam Executive Officer and the President to initiate, commit, Director and approve payments for expenditures approved in the 7. Professor Khunying Suchada Kiranandana Capital Expenditure Budget and other budgets approved Independent Director by the Board for the purpose of the special projects. The Board 8. Professor Dr. Yongyuth Yuthavong shall also review and approve any credit proposal beyond Independent Director the established limits of the delegated lending authority. Annual Report 2011 234 Corporate Governance

7. Reviewing and approving human resources policies, an ad hoc committee comprising the Bank’s Directors or external management development plans, and remuneration personnel to handle the director nomination procedure. If there is policies. The Board shall seek and nominate successors no suitable candidate, the nomination procedure will be resumed to the Chief Executive Officer and the President; to find new qualified candidates. For the nomination of Independent appraise their performance and ensure that effective Directors, the Human Resources and Remuneration Committee performance assessments are undertaken of Bank will consider qualified candidates who do not have characteristics executives. prohibiting them from holding such positions as prescribed by the 8. Ensuring the existence of an effective internal control regulations of the Bank of Thailand and other regulatory agencies. system and appropriate risk management framework. Qualified candidates will be recommended to the Board of Directors 9. Ensuring an effective audit system executed by both for consideration and submitted for concurrence to the Bank of internal and external auditors. Thailand before being proposed to the General Meeting of 10. Approving quarterly, semi-annual, and annual financial Shareholders for individual election, in the case of election of reports; ensuring that reports are prepared under director due by rotation and appointment of new director. generally accepted accounting standards. After the Board of Directors resolves to endorse the 11. Ensuring capital adequacy, including an appropriate proposal, the Office of Corporate Secretary proceeds to capital assessment process, for present and future business. ask for the Bank of Thailand’s concurrence, in either electing 12. Ensuring that the Bank has a proper system in place to a director due by rotation or a new director or a director as communicate effectively with all stakeholders and the public. replacement for the vacancy. If the Bank of Thailand does not concur with the proposal, the Human Resources and Nomination of Directors Remuneration Committee shall resume the nomination process. The Bank established the Human Resources and After the shareholders meeting has passed a resolution to Remuneration Committee to select and review candidates elect a director, in the case of appointment due by rotation or nominated to the position of director. The appropriate a new director or in the case of the Bank of Thailand concurring proportion, number, and composition of the Board are taken into with a proposal to appoint a vacancy replacement before consideration, which must also conform to regulatory statutes, the end of a term, the Office of Corporate Secretary shall register the Bank’s Articles of Association, and the Statement of the change of director and report to related official agencies Corporate Governance Principles. Selection guidelines include: within the defined period of time. 1. Considering qualified persons, not those having characteristics prohibiting them from holding Appointment and Removal of Directors a directorship in a financial institution, per the criteria 1. The Bank’s shareholders meeting shall appoint not of the Bank of Thailand, the Office of the Securities less than 7 and not more than 18 directors; and Exchange Commission, the Capital Market not fewer than half of all directors shall reside in the Supervisory Board, and other related agencies. Kingdom of Thailand and not fewer than three-fourths 2. Reviewing their qualifications based on the Qualifications of all directors shall be of Thai nationality. A director of Financial Institution Directors questionnaire, may or may not be a shareholder. Directors shall be and in accordance with related laws. elected by the meeting of shareholders in accordance 3. Ensuring that candidates have the qualifications, skills, with the following rules and procedures: knowledge, and basic experience defined by the Bank. 1) Directors shall be elected individually. The Bank gives shareholders the opportunity to propose 2) Each shareholder shall have one vote per share held. candidates for consideration and election to such positions in the 3) Each shareholder shall use all of his/her votes in Annual General Meeting of Shareholders, according to specified the election of directors. criteria and procedures. The Human Resources and Remuneration 4) Persons receiving the highest number of approving Committee may propose to the Board of Directors to set up votes among all candidates are to be elected in Annual Report 2011 Corporate Governance 235

respective order, not exceeding the number of For transactions over the specified limit, the Board shall review and positions to be filled at that meeting. approve the limit of such transactions on a case-by-case basis. 5) In the event of a tied vote on the last in the order of director positions to be filled, the chairman of Executive Authority of the Bank the meeting shall have the deciding vote. In addition to the aforementioned empowerment of executive 2. At each Annual General Meeting of Shareholders, authority, the Bank has also established a set of criteria and plans one-third of the directors - or the number nearest to for exercising internal executive authority. These principles help one-third if the number is not a multiple of three - must the Bank to delegate authority among employees in various retire from office. The directors who have been in office positions, enabling them to perform specific functions and make the longest shall retire first. If there is disagreement as effective decisions with flexibility, while staying within the confines to who should retire, it shall be decided by drawing lots. of an appropriate control system. Internal executive authority is Retiring directors may be re-elected. categorized into 3 areas: 3. Any director who passes away, or tenders his/her 1. Executive authority shared by various departments resignation prior to completion of his/her term, or is 2. Departmental/Office executive authority resolved to be removed by a meeting, or is ordered by the 3. Branch executive authority Court to resign, or whose qualifications fall short of the criteria and prerequisites specified, shall be removed from office. Principles 4. If a vacancy in the Board of Directors occurs for reasons The followings are the main points of the structure other than the expiration of the director’s term of office, and content of the internal executive authority: the remaining Board members shall elect a person with 1. The empowerment of executive authority is the delegation the proper qualifications, and no prohibited characteristics, of authority of the Chief Executive Officer, President, as a replacement director at the next meeting of the or Domain Coordinators to administer and execute Board of Directors, unless the remaining term of office various tasks within the Bank to the next lower level of said director is less than 2 months. Such a resolution of management, as appropriate. by the Board of Directors shall require not less than 2. The Chief Executive Officer, President, or two of four three-fourths of the remaining directors’ votes for Domain Coordinators are assigned by the Board of approval. The replacement director shall hold office only Directors to approve the internal executive authority for the remaining term of the director whom he or she and principles. is replacing. 3. Internal executive authority shall include: 1) Executive authority involving approvals and instructions Empowerment by the Board of Directors that are intended toward financial and non-financial The Chairman and Vice Chairman may approve the transactions for internal management within the empowerment of executive authority to the Bank’s Chief Executive department or unit according to assigned duties. Officer, President, or two of four Domain Coordinators* to act 2) Executive authority involving disbursements must be legally on behalf of the Bank in conducting transactions up to within the approved budget of the Bank. a limit of Baht 3,000 million per transaction. Such executives may 4. For complete control, executive authority is divided into delegate this authority to a Bank employee to act on behalf of categories according to operational function, the Bank within the limits of each employee’s responsibility. as follows: 1) Executive authority shared among various departments refers to authority that is not assigned specifically to * The Board of Directors has approved the Bank’s organizational restructuring any one particular department, but may be specified in 4 domains: Business, Risk, Infrastructure, and Resource, with Senior Executive according to the job performed by the Chief Executive Vice Presidents serving as Domain Coordinators. Officer, President, Domain Coordinators, Division Annual Report 2011 236 Corporate Governance

Heads, Department Heads, and other individuals 5. The principles of executive authority are established and in various positions employing such authority in presented in tabular form to ensure that Management various departments/units as follows: and staff at all operational levels understand and (1) Executive authority relating to human resources perform their duties according to the delegated authority (2) Executive authority relating to expenditures and risk management framework. (3) Executive authority to quote exchange rates and offer lower fees or interest rates to domestic Board of Directors Meetings and international businesses The Board of Directors schedules board meetings (4) Executive authority of the Assets and Liabilities for the last Thursday of every month in order to continually Management Subcommittee monitor compliance with policies and plans. At the beginning (5) Executive authority relating to customer services of each year, all board members are informed of the meeting (6) Executive authority relating to account debit/ schedule for the entire year. Additional meetings may be closing for debt settlement held as deemed appropriate. The Corporate Secretary (7) Executive authority relating to credit product pricing arranges for notices of board meetings, agendas, and related (8) Executive authority in endorsement of letters to documents containing complete information to be delivered the Bank of Thailand, regulatory agencies, to each director at least 7 days in advance, except in urgent or government agencies cases, to allow sufficient time for the Board to study (9) Executive authority relating to procurement the matters at hand. Each director may ask for additional management information from the Corporate Secretary and is free (10) Executive authority relating to budget management to propose agenda items. The agenda for board meetings (11) Executive authority relating to redress to shall be categorized clearly and include agenda items customers or external persons designed to monitor the operating results of the Bank on (12) Executive authority relating to assignment of a regular basis. The designation of the agenda must undergo employees as special lecturers the consideration of the Chairman, Chief Executive Officer, (13) Executive authority relating to credit approval and President. and authority in debt restructuring/recovery During the meeting, the Chairman will allocate sufficient (14) Executive authority relating to approval of time for discussion and support directors in freely expressing interest rates for retail customers, which will their opinions. Pertinent executives of the Bank shall be incur loss to the Bank invited to attend the meeting to provide related information (15) Executive authority relating to other aspects and to directly acknowledge related policies to ensure efficient 2) Departmental executive authority is the executive implementation. The Bank provides a teleconference system authority delegated to a specific department relative for directors who cannot attend the meeting in person, to its business activities or tasks. Authority is delegated and provides simultaneous translation for foreign directors. to the Chief Executive Officer, President, Domain Each agenda item and its resolution are recorded in writing, Coordinators, Division Heads, Department Heads, and the minutes of the meeting, which have been affirmed by as well as to individuals in various positions in related the Board together with related documents, are systematically department(s) within their scope of responsibilities. filed for examination and reference by the Board, or others 3) Branch executive authority is the authority regarding concerned. the scope of responsibilities delegated to branches Moreover, the Board has established that non-executive relative to their business activities, to network directors shall conduct at least one meeting annually without managers, zone managers, and branch managers, the participation of executive directors, to offer them the as well as to individuals in various positions opportunity to discuss problems related to business of the Bank in the branch. or any other concerns, and evaluate the performance of Annual Report 2011 Corporate Governance 237

the Chief Executive Officer and President. The outcome of Moreover, the Bank has appointed 14 subcommittees such meetings shall be reported to the Chief Executive Officer to consider and review the scope of work assigned to them. and President. In 2011, the Board held a total of 12 board meetings; 1. Audit Committee in addition, 1 non-executive director meeting was held in August. The Board of Directors approved the appointment of Details of each director’s attendance appear under the heading the Audit Committee in 1998, with the Committee having at Meeting Attendance of the Board and Board Committees least three independent members and each member having in 2011. a 3-year term. Each member is fully qualified in accordance with the qualifications prescribed by the Securities Advisers to the Board of Directors and Exchange Commission, the Capital Market Supervisory The Board of Directors appointed several qualified persons Board, and the Bank of Thailand. Professor Khunying Suchada to act as Advisers to the Board of Directors, including: Kiranandana, the Chairperson, has adequate expertise 1. Mr. Pairote Lamsam and experience to audit the credibility of the financial 2. Mr. Chaleo Yoovidhya statements. There are 4 independent directors as follows: 3. Mr. William Mark Evans 1. Professor Khunying Suchada Kiranandana 4. Dr. Tian Suning Chairperson 2. Mr. Somchai Bulsook Responsibilities of the Advisers to the Board of Directors Member Roles and responsibilities of the Advisers to the Board of 3. Professor Dr. Yongyuth Yuthavong Directors are to make recommendations to the Board of Member Directors in matters relevant to and within the authority 4. Ms. Elizabeth Sam and responsibilities of the Board of Directors. Examples include Member the Bank’s policies, issues that require compliance with The Committee holds at least 6 meetings per year established laws and regulations, as well as other important and reviews operations regularly per its charter. In 2011, business that, once undertaken, may cause significant changes the Committee held a total of 12 meetings and reported or impacts to the Bank’s operations. all meeting resolutions to the Board of Directors. 5.3 Board Committees Responsibilities of the Audit Committee The Board of Directors has appointed directors who have The Audit Committee has duties and responsibilities suitable knowledge and skills to act as members of Board mandated in the Audit Committee Charter approved by Committees, with the specific duty to pre-screen matters that the Board of Directors, as follows: need prudent attention prior to submission to the Board of 1. Reviewing financial statements on a quarterly, Directors. Board Committees include the Audit Committee, semi-annual, and annual basis under consultation the Corporate Governance Committee, the Human Resources with the Bank’s Finance and Control Division and Remuneration Committee, and the Risk Management and external auditor in order to ensure that Committee. The Board has also established a Management the financial statements of the Bank are accurate Committee consisting of the Chief Executive Officer, and reliable and in compliance with the accounting the President, and other Bank officers to manage standards, laws, and standards pertaining to and operate the Bank’s business as defined by the Board. the Bank’s operations. In addition, certain directors have been appointed as 2. Reviewing the efficiency and appropriateness of Advisory Directors to the Management Committee, with the risk management processes with the Risk duty to provide expert consultation as deemed appropriate Management Unit, in consultation with both internal by the Board. and external auditors. Annual Report 2011 238 Corporate Governance

3. Overseeing the efficiency and independence of 12. Submiting minutes of each Audit Committee Meeting to risk asset review function. the Board of Directors, and preparing the annual Audit 4. Reviewing the Bank’s operations to see that they are Committee Report, signed by the Audit Committee in compliance with Securities and Exchange Acts, Chairman, summarizing the year’s activities and giving SET regulations and standards or banking laws information or data specified by the Stock Exchange and regulations pertaining to commercial banking of Thailand for disclosure in the annual report of the Bank. business. 13. Discussing and reviewing with Management or outside 5. Reviewing the effectiveness and appropriateness of experts any matters or activities having a bearing on the internal control and reviewing the effectiveness of the Board’s oversight responsibilities according to internal audit function to ensure compliance with Audit Committee Charter and consolidated the Professional Practice of Internal Auditing, including: supervision policy. approving and reviewing annual audit plan; reviewing 14. At least once a year, the Audit Committee shall review the appropriateness and sufficiency of required its Charter and performance over the past year, auditing resources; considering the independence taking into account any assessment or comments of the internal audit function; and concuring in the provided by the Chairman of the Board. appointment, transfer and dismissal of the Internal Audit Head. 2. Corporate Governance Committee 6. Reviewing the performance of the external auditors; The Board of Directors approved the appointment of considering, selecting and recommending to the Board the Corporate Governance Committee in 2002, with the the appointment and annual audit fees of the Committee having not less than 3 members and each member independent auditors. Holding at least one meeting having a 3-year term. In 2011 the Committee had 4 members, per year with the external auditors without the presence comprising 2 non-executive directors and 2 independent of Management. directors, as follows: 7. Evaluating connected transactions, or transactions 1. Pol. Gen. Pow Sarasin with possible conflict of interest in relation to compliance Chairman with the laws and regulatory requirements in order to 2. Mr. Sukri Kaocharern ensure transparency of those transactions. Member 8. Considering the disclosure of information on connected 3. Professor Dr. Yongyuth Yuthavong transactions, conflicts of interest, or certain Bank Member operations to ensure transparency and appropriateness. 4. Mr. Hiroshi Ota 9. Ensuring that preliminary investigation is carried out Member after receiving the external auditor’s report on The Corporate Governance Committee holds at least suspicious fraudulent behaviour or violation of laws by 4 meetings each year. In 2011, the Corporate Governance Bank Board members and Management. The Audit Committee held 5 meetings and reported all meeting resolutions Committee shall report the results of such investigation to the Board of Directors. to the Securities and Exchange Commission and the external auditor within 30 days from the date Responsibilities of the Corporate Governance Committee they are notified by the external auditor. The Corporate Governance Committee has duties 10. Overseeing and reviewing complaint or information and responsibilities mandated in the Corporate Governance submitted directly by stakeholders for attention of Committee Charter and approved by the Board of Directors, the Board. as follows: 11. Performing other duties, as regulated or assigned by 1. Establishing the principles and best practices for the Board as agreed by the Audit Committee. effective corporate governance appropriate to the Bank. Annual Report 2011 Corporate Governance 239

2. Developing and disseminating the principles and best 3. Professor Dr. Pairash Thajchayapong practices of good corporate governance. Member 3. Formulating the Statement of Business Conduct 4. Ms. Kobkarn Wattanavrangkul and the Code of Conduct of the Bank’s employees, Member and disseminating these codes as practical guidelines to The Human Resources and Remuneration Committee all concerned. holds at least 3 meetings each year. In 2011, the Human 4. Developing supervision plans for review of corporate Resources and Remuneration Committee held 6 meetings governance compliance. and reported all meeting resolutions to the Board of Directors. 5. Reviewing announcements concerning good corporate governance to summarize and present in the Bank’s Responsibilities of the Human Resources and Remuneration reports. Committee 6. Recommending the Code of Best Practices for The Human Resources and Remuneration Committee the Board of Directors or proposing guidelines for has duties and responsibilities mandated by the Human the Board of Directors Charter and all other Board Resources and Remuneration Committee Charter Committee Charters. and approved by the Board of Directors, as follows: 7. Recommending the Statement of Business Conduct 1. Reviewing and making recommendations on and the Code of Conduct of Management to Bank the proposals of the Chief Executive Officer personnel. and/or the President relating to human resources 8. Reviewing corporate governance guidelines and corporate policies for the Board of Directors’ approval, governance practice to ensure consistency and to ensure that proposals are aligned with compatibility with the Bank’s business. the Bank’s business strategies. 9. Reviewing and proposing public announcements 2. Ensuring a succession plan for senior management related to corporate governance issues. in important positions and occasionally reviewing 10. Supervising corporate environmental and social a list of candidates entitled to consideration. responsibility. 3. Reviewing the remuneration strategy and proposing 11. Reviewing and reporting to the Board of Directors improvements for the Board’s endorsement, matters related to corporate governance, giving opinions in order to retain highly qualified personnel, on practical guidelines and suggesting improvements, as well as reviewing the salaries and benefits to as deemed appropriate. senior management. 12. Ensuring effective practice of corporate governance 4. Establishing terms and conditions of employment principles in the Bank. contracts of the Chief Executive Officer and the President, including their remuneration, 3. Human Resources and Remuneration Committee as well as seeking and recommending qualified The Board approved the appointment of the Human successors to the Board for the positions of Resources and Remuneration Committee in 2002, with each Chief Executive Officer and President, member having a 3-year term. The Committee comprises at when considered necessary. least 3 non-executive directors. The Committee has 4 members, 5. Reviewing the composition, size, experience, comprising 1 non-executive director and 3 independent and remuneration of the Board of Directors, directors, as follows: as well as making recommendations on the 1. Mr. Somchai Bulsook selection of candidates with proper qualifications Chairman for the position of director prior to submission 2. Dr. Abhijai Chandrasen to the General Meeting of Shareholders for Member appointment. Annual Report 2011 240 Corporate Governance

Nomination of Management 10. Mr. Songpol Chevapanyaroj The Human Resources and Remuneration Committee Member is responsible for nominating, selecting and reviewing 11. Mr. Wirawat Panthawangkun qualified candidates to be proposed to the Board of Directors Member for endorsement before submitting to the Bank of Thailand 12. Mr. Chongrak Rattanapian for concurrence for appointments to Bank’s Management Member at the level of First Senior Vice President and above, 13. Mr. Art Wichiencharoen or an equivalent position under a different name. Member For the appointment of executives ranked below First Senior 14. Mr. Porvarate Chetphongphan Vice President, Division Heads and the Human Resource Member Management Department shall prepare a list of qualified The Risk Management Committee meets at least once candidates to be nominated before submission to the Domain each month. In 2011, the Risk Management Committee Coordinators for further consideration and approval by held 12 meetings and reported to the Board of Directors. the Chief Executive Officer or the President. The Committee ensures that there are effective risk management systems for early warning and measures to prevent and manage 4. Risk Management Committee risks, including risks that affect operations. They also oversee The Board of Directors approved a change in the status compliance with risk management practices according to of the former Internal Risk Management Subcommittee relevant policies, and prepare risk management reports. to the Risk Management Committee on April 29, 2004. Each member has a 2-year term and the Committee must Responsibilities of the Risk Management Committee comprise at least 7 members. The Committee has 14 members The Risk Management Committee has duties comprising 1 executive director, 2 non-executive directors, and responsibilities as mandated in the Risk Management and 11 executives, namely: Committee Charter approved by the Board of Directors, including: 1. Mr. Sukri Kaocharern 1. Possessing the authority to make decisions on related Chairman undertakings within the scope of its responsibility, 2. Mr. Banthoon Lamsam as stipulated in the Risk Management Committee Member Charter, with the authority to access all pertinent 3. Ms. Sujitpan Lamsam information. Member 2. Formulating the KASIKORNBANK FINANCIAL 4. Mr. Somkiat Sirichatchai CONGLOMERATE risk management policy to Member present to the Board of Directors for consideration 5. Mr. Predee Daochai of overall risk management. The policy must Member cover the various risks associated with strategies, 6. Mr. Teeranun Srihong liquidity, credit, market, operational, or other Member significant types of risk to the financial conglomerate. 7. Mr. Krisada Lamsam 3. Formulating strategies for the organization and Member resources in risk management to conform to 8. Mr. Thiti Tantikulanan the risk management policy of the Financial Member Conglomerate. The strategies must enable 9. Ms. Kattiya Indaravijaya the effective analysis, assessment, evaluation, Member and monitoring of risk management. Annual Report 2011 Corporate Governance 241

4. Defining maximum credit lines according to the Bank’s 4. Mr. Teeranun Srihong defined risk limits and proposing such to the Board Member of Directors for consideration. 5. Mr. Krisada Lamsam 5. Overseeing, reviewing, and providing recommendations Member to the Board of Directors with regard to the risk 6. Mr. Pakorn Partanapat management policy, standard practices, strategies, Member and overall risk measurement to ensure that the risk 7. Mr. Surasak Dudsdeemaytha management strategy is properly implemented. Member 8. Mr. Prasopsuk Damrongchietanon 5. Advisory Directors to the Management Committee Member The Board of Directors and the 88th Annual General Meeting 9. Ms. Kattiya Indaravijaya of Shareholders on April 4, 2000, approved the appointment Member of the Advisory Directors to the Management Committee. 10. Dr. Adit Laixuthai In 2011, the Committee comprised 4 directors, namely: Member 1. Mr. Banyong Lamsam 11. Mr. Songpol Chevapanyaroj 2. Pol. Gen. Pow Sarasin Member 3. Mr. Sukri Kaocharern 12. Mr. Vasin Vanichvoranun 4. Dr. Abhijai Chandrasen Member 13. Mr. Ampol Polohakul Responsibilities of the Advisory Directors to the Management Member Committee 14. Mr. Wirawat Panthawangkun 1. Giving recommendations to the Management Committee, Member as the Board of Directors deems appropriate. 15. Mr. Somkid Jiranuntarat 2. Ensuring efficiency in the Bank’s management Member and operations. 16. Mr. Pipit Aneaknithi Member 6. Management Committee The Management Committee meets weekly. In 2011, The Board of Directors and the 88th Annual General the Management Committee held 44 meetings and reported Meeting of Shareholders, on April 4, 2000, approved the all meeting resolutions to the Board of Directors. appointment of the Management Committee. The Committee consists of the Chief Executive Officer, President, and other Responsibilities of the Management Committee Bank officers. In 2011, the Committee comprised 16 members, The Management Committee has duties and responsibilities namely: as mandated in the Management Committee Charter, approved 1. Mr. Banthoon Lamsam by the Board of Directors, as follows: Chairman 1. Managing and undertaking the Bank’s business as 2. Mr. Somkiat Sirichatchai assigned by the Board of Directors, or by specific Member resolutions of the Board of Directors. 3. Mr. Predee Daochai 2. Managing the Bank’s business according to established Member policies and plans. Annual Report 2011 242 Corporate Governance

3. Taking action in accordance with the authority delegated 7) Monitoring and reporting on the Bank’s operating by the Board of Directors, and per their mandated results to the Board of Directors, as well as management jurisdiction over the Bank. on other work in progress to achieve the Bank’s 4. The Chairman of the Management Committee shall objectives. submit the minutes of the Management Committee 8) Monitoring the performance of employees at all levels meetings to the Board of Directors for acknowledgement. with regard to risk management, per the Bank’s However, policy-related issues, or issues likely to have guidelines, including the effectiveness of internal significant impact on the Bank’s business, or issues control systems and operational compliance requiring action by the Board of Directors in compliance with laws and regulations and related policies. with laws, or the Bank’s Articles of Association, 9) Reviewing new projects and products prior to must be approved by the Board of Directors. These also submission to the Board of Directors for include issues for which the Management Committee consideration and approval. considers it appropriate to seek the approval of 10) Communicating with external stakeholders, the Board of Directors on a case-by-case basis, per designated authority, and as deemed or per the criteria designated by the Board of Directors. appropriate. 5. Undertaking activities as assigned in order to achieve the Bank’s targets, including: 7. The Subcommittees 1) Preparing and reviewing of strategic objectives, The responsibilities of the Subcommittees are to review financial plans and key policies of the Bank, to be and manage various matters within the Bank to ensure accuracy, submitted to the Board of Directors for approval. propriety, efficiency, and the highest effectiveness. 2) Considering the annual business plans, The Bank has reviewed and approved the establishment capital expenditures, performance targets, of Subcommittees. In 2011, there are 14 Subcommittees, and other initiatives to achieve the Bank’s targets, namely: including projects with capital expenditures 1. Information Technology Strategy Subcommittee in excess of budgets designated by the Board of 2. Assets and Liabilities Management Subcommittee Directors, to be submitted to the Board of Directors 3. Corporate and SME Upper Medium Debt Recovery for approval. and Restructure Subcommittee 3) Considering and approving various issues under 4. Retail and SME Debt Recovery and Restructure their legitimate authority, or as delegated by Subcommittee the Board of Directors. 5. Foreclosed Property Management Subcommittee 4) Reviewing management authority in various aspects 6. Corporate and SME Product Pricing Subcommittee stipulated in the approval authority hierarchy, to be 7. Retail Product Pricing Subcommittee submitted for approval to the Board of Directors. 8. Credit Policy and Risk Management Subcommittee 5) Managing and ensuring balance between short-term 9. Data Governance Subcommittee and long-term objectives. 10. Information Technology Investment Subcommittee 6) Developing and ensuring that human resources 11. Procurement Subcommittee initiatives are in line with the human resources 12. Capital Management Subcommittee roadmap and strategies approved by the Human 13. Operational Risk Subcommittee Resources and Remuneration Committee. 14. Credit Process Management Subcommittee Annual Report 2011 Corporate Governance 243

Meeting Attendance of the Board and Board Committees in 2011 Number of Meetings Human Board of Non-Executive Corporate Risk Audit Resources and Governance Management Remuneration Board Members Directors Directors Committee (Total (Total Committee Committee (Total Committee 12 meetings) 1 Meeting) (Total (Total 12 meetings) (Total 5 meetings) 12 meetings) 6 meetings) Mr. Banyong Lamsam 12 1 Pol. Gen. Pow Sarasin 11 1 5 Mr. Banthoon Lamsam 11 7 Mr. Sukri Kaocharern 11 1 4 11 M.R. Sarisdiguna Kitiyakara(1) 6 - 6 Mr. Somchai Bulsook 12 1 11 6 Ms. Sujitpan Lamsam 12 1 7 Prof. Khunying Suchada Kiranandana(2) 12 1 12 Prof. Dr. Yongyuth Yuthavong(3) 12 1 5 3 Dr. Abhijai Chandrasen(4) 12 1 6 Ms. Elizabeth Sam 10 1 12 Prof. Dr. Pairash Thajchayapong 11 1 6 Mr. Hiroshi Ota 12 1 5 Ms. Kobkarn Wattanavrangkul(5) 10 1 4

Remarks: (1) M.R. Sarisdiguna Kitiyakara passed away on September 21, 2011. (2) Prof. Khunying Suchada Kiranandana was appointed Chairperson of the Audit Committee on September 29, 2011. (3) Prof. Dr. Yongyuth Yuthavong was appointed a member of the Audit Committee on September 29, 2011. (4) Dr. Abhijai Chandrasen was appointed a member of the Human Resources and Remuneration Committee on January 27, 2011. (5) Ms. Kobkarn Wattanavrangkul was appointed as a director and a member of the Human Resources and Remuneration Committee on January 31, 2011. • Number of members on the Board and Board Committees (As of December 31, 2011): The Board of Directors 13 members Corporate Governance Committee 4 members Risk Management Committee 14 members (includes 3 Board members) Audit Committee 4 members Human Resources and Remuneration Committee 4 members • Details of meeting attendance through teleconferencing to the Board and Board Committees: The Board of Directors Ms. Sujitpan Lamsam 7 meetings Ms. Elizabeth Sam 5 meetings Risk Management Committee Ms. Sujitpan Lamsam 5 meetings Audit Committee Ms. Elizabeth Sam 10 meetings • Three Board members, Ms. Sujitpan Lamsam, Ms. Elizabeth Sam, and Mr. Hiroshi Ota do not reside in Thailand. Annual Report 2011 244 Corporate Governance

5.4 Roles and Responsibilities of the Board of Directors The content of the Bank’s Statement of Corporate The Board of Directors comprises persons who have Governance Principles covers the structure, composition, knowledge, ability and working experience beneficial to the Bank. roles, duties, and responsibilities of the Board of Directors The Board approves the Mission, Vision, and Core Values and all Board Committees, as well as matters of risk as well as strategic directions and policies of KASIKORNBANK management, internal control systems, inside information FINANCIAL CONGLOMERATE, reviews the annual business policies, and issues that are likely to involve conflicts of plan and budget, and oversees Management in effectively interest and shareholder relationships. Details of the Statement carrying out actions that are in line with the designated policies of Corporate Governance Principles can be found under and business plans and are in accordance with the rules the “Investors” tab at www.kasikornbankgroup.com. and regulatory requirements of related government agencies The Corporate Governance Policy covers the Bank’s and the resolutions of shareholders meeting. The Board of mission, vision and core values, Statement of Business Directors decisions are independent, in order to ensure that Conduct, and the employees’ Code of Conduct. This includes the Bank and its stakeholders receive the maximum benefit the protection of the legitimate rights of shareholders, and increased economic value of the Bank. who are encouraged to exercise their rights, as reflected Moreover, the Board of Directors ensures the existence in operational guidelines and directions adopted internally of an effective internal control system and appropriate risk that ensure that the Bank has adequately followed management framework, and cooperates with the Bank’s the best practices in corporate governance. In 2011, management in business undertakings in order to attain the best the Bank assessed and reviewed operations results according results. Current and future risks are taken into consideration, to the Corporate Governance Policy, and the Board of in conformity with the Bank’s mission, vision, Statement of Directors resolved to amend the Statement of Corporate Business Conduct, and Statement of Corporate Governance Governance Principles effective on January 4, 2011 so as to Principles. comply with regulatory requirements and best practices. Moreover, the Bank disseminated a KGroup Corporate Corporate Governance Policy Governance booklet, comprising important content and KASIKORNBANK places great importance on good operational guidelines for enhancing corporate governance to corporate governance, believing it to be essential to sustaining all stakeholders. the Bank’s business. The Statement of Corporate Governance All members of the Board of Directors are aware of Principles has been revised and approved by the Board of their mutual responsibilities for sustaining the most benefit Directors. The same principles have been applied to to the Bank, and their roles in supervising information disclosure, KASIKORNBANKGROUP, as well. The principles are transparency in business undertakings and the decision-making aimed primarily at communicating to all employees, shareholders, process, and fair treatment to all stakeholders. In addition, and other stakeholders the ultimate goal of the Board of the Bank places great importance on fairness in every Directors, namely to act in accordance with the 7 major business undertaking, as well as participation in Corporate components of corporate governance: Social Responsibility (CSR) activities. The Bank and its • Integrity employees must strictly adhere to the Code of Conduct • Transparency in performing their duties under the CSR principles. The Bank • Independence has also been enthusiastically participating in and promoting • Responsibility environmental protection and social development projects, • Accountability in recognition of the importance of the need for improvement • Fairness in the quality of life of individuals and the community at large, • Social Responsibility and for the benefits of all stakeholders. Annual Report 2011 Corporate Governance 245

The Bank encourages all people in the organization organized through the KGroup newsletter circulated to realize the importance of acting in compliance with within the organization. the Statement of Corporate Governance Principles by • Activities were organized on the “Welcome Page” organizing activities to promote continuing and sustainable of the KGroup electronic network, to disseminate corporate governance. Emphasis was placed on the information on the Statement of Business Conduct maintenance and development of corporate governance, and the Statement of Corporate Governance Principles, and the promotion of corporate governance as an organizational including quotes concerning the Code of Conduct. culture. In 2011, the Bank’s activities to promote Corporate • Criteria for supervising the use of inside information Governance were as follows: related to securities and stock futures trading were • The Bank circulated the Code of Conduct to employees disseminated to directors and employees. for their acknowledgement. • A Corporate Governance Journal was prepared to • The Statement of Corporate Governance Principles report to the Board of Directors on Corporate and Code of Conduct were two main issues in Governance and Corporate Social Responsibility 9 orientation classes for newly recruited executives activities of the Bank and other leading business and employees. entities, and dissemisnated to employees through • Actions in compliance with the Code of Conduct a Corporate Governance database set in the electronic and the Statement of Corporate Governance Principles network. were disseminated to employees through a Corporate • Permitted and forbidden actions relating to the Governance database set in the electronic network. acceptance of gifts in compliance with the Code of • Actions that comply with the Code of Conduct were Conduct were disseminated to all employees. promoted through broadcasts of fillers and quotes • The CG Visit Project was implemented for secretaries to after news updates through the Bank’s closed-circuit the Board and Human Resources and Remuneration TV network - known as KASIKORNTV - in order Committee to offer consultation, recommendations, to promote common understanding of actions and review of compliance with the Statement of stipulated in the Statement of Corporate Governance Corporate Governance Principles. Principles. • The KGroup CG Index project was initiated for use as • Actions pertaining to the Statement of Corporate the index to monitor and assess the corporate governance Governance Principles and the Code of Conduct were practices of the Bank, K Companies, and P Companies.

Orientation for new employees on the Statement of Corporate Governance Principles Article on corporate governance in an internal newsletter at the KBank Learning Center Annual Report 2011 246 Corporate Governance

Business Ethics 7. Protecting customer confidentiality and maintaining The Board of Directors has promoted the establishment customer trust using professional standards. of a Statement of Business Conduct and a Code of Conduct 8. Being dedicated to carrying out responsibilities in a professional for directors and employees. All directors, executives, and manner and striving to achieve excellent results by integrating employees share common goals in carrying out their designated modern approaches and technological advances. duties and responsibilities to the Bank and its stakeholders. 9. Respecting the equal rights of all stakeholders. They perform their duties with integrity, in compliance with the 10. Being committed to discipline in business execution law and the Bank’s Articles of Association, based on professional and making certain that all business decisions and standards and a business approach that is transparent, honest, operations conform to related laws and regulations by and fair, for the development of the organization towards pursuing the Statement of Business Conduct of the Bank attaining international standards. The Statement of Business and the Code of Conduct of the workforce. Conduct and the Code of Conduct have been disseminated Significant content in the Code of Conduct includes: via the Bank’s website and database. (1) key principles and core values of the Bank; (2) observance The Bank adheres to the Statement of Business Conduct, of laws and the Bank’s regulations; (3) good relationships with as follows: customers; (4) good relationships with society; (5) good 1. Aiming to satisfy customers by offering quality products relationships with employees; (6) an advertising and public and excellent services. relations policy; (7) confidentiality; (8) completeness and 2. Continually striving for superior performance. accuracy of the Bank’s information; (9) avoidance of the use 3. The Bank’s employees are valuable assets. The Bank of inside information in securities trading; (10) prevention seeks and recruits people with skill and experience, of conflicts of interest; (11) abstention from bribery and continually developing human resources, and offering inappropriate incentives; (12) non-involvement in political remuneration comparable to other leading companies. activities; (13) avoidance of accepting or offering inappropriate 4. Performing as a good corporate citizen, conducting gifts and/or benefits; and (14) reporting employee violations business with impartiality and contributing to social of the Code of Conduct. development and environmental preservation. In this Code of Conduct, the Bank has designated the basic 5. Believing in fairness for all. principles concerning the execution of duties and compliance 6. Believing in strong ethical standards and determining with professional standards by directors and employees. Details to carry out business with integrity. of the Code of Conduct can be viewed on the Bank’s website.

Code of Conduct booklet CG Heroes award presentation ceremony Annual Report 2011 Corporate Governance 247

Moreover, the Bank identifies important rules and practical • Connected Transactions must be submitted to guidelines that are in accordance with the Code of Conduct, the Audit Committee for consideration before further which are detailed and disseminated to employees. The Bank submission to the Board of Directors for approval, also supports the practical implementation of the Code of according to the Statement of Corporate Governance Conduct throughout KASIKORNBANKGROUP, and has Principles and criteria stipulated by the Office of designated regulations that are consistent with business the Securities and Exchange Commission. and compliance responsibilities. • The Board of Directors has established a principle Also, the Bank has established the Corporate Governance for conducting connected transactions between Unit to launch activities to promote ethical behavior within the Bank’s directors, executives, or related persons a culture of good corporate governance. Best practices and and the Bank or its subsidiaries. Such a transaction actions in line with the Code of Conduct are regularly and can be conducted if the transaction is under terms efficiently disseminated to all employees. These activities and conditions similar to those applied to general are also reported to the Corporate Governance Committee customers in the normal course of business of the Bank for acknowledgement, and the Compliance Department and its subsidiaries. monitores and evaluates the effectiveness of employees’ • In conducting transactions between the Bank and actions, as stated in the Code of Conduct. its subsidiaries or transactions between the Bank’s subsidiaries, the Bank requires that all transactions Conflicts of Interest Prevention must be under terms and conditions similar to those To encourage good governance, to be in compliance applied to other persons in the normal course of with standards of good governance, and to meet targets related business at a similar level of risk. Those transactions to its implementation, the Bank has initiated guidelines to must be approved by the Board of Directors of the Bank control, supervise, and prevent transactions that may involve and its subsidiaries, as the case may be. conflicts of interest or connected or related transactions. • The Bank and its subsidiaries which conduct This is one of the key components of corporate governance transactions in granting credit have no policy to policy that the Board of Directors and the Bank’s employees grant credit, conduct transactions similar to credit must strictly comply with to earn the trust of all stakeholders. granting, or conduct transactions relating to assets The following is the essence of these principles: for any of the directors, executives, or related persons • The Board of Directors has resolved to approve of the Bank and its subsidiaries which conduct such a Conflicts of Interest Prevention and Connected transactions in granting credit, except for cases Transaction Policy, as well as guidelines to consider in line with exceptions according to the Bank of appropriateness in the conduct of transactions that Thailand’s regulations. Moreover, the Bank and its must undergo the scrutiny of the Audit Committee subsidiaries have no policy to grant credit, invest, and ensure compliance with the criteria of the Office of create contingent liabilities, or conduct transactions the Securities and Exchange Commission, the Capital similar to credit granting for any of the major Market Supervisory Board, the Stock Exchange of shareholders or related persons of the Bank and its Thailand, and the Bank of Thailand. subsidiaries which conduct transactions in granting • Directors, executives, or employees with related interest credit, or any of the businesses that have related in a transaction with the Bank or its subsidiaries must not interests with the Bank and its subsidiaries which participate in considering or approving such a transaction. conduct such transactions in granting credit, The price of the transaction must be set appropriately, separately or in combination, at the end of each day, fairly, and in accordance with general commercial terms in excess of the quantity prescribed by the Bank as applied to general customers. and the Bank of Thailand. Annual Report 2011 248 Corporate Governance

• Directors, officers in the position of First Senior This also includes disclosures of information on Vice President and higher, and those in the position of connected transactions to the Stock Exchange of Department Head or equivalent in the Financial Thailand according to the Stock Exchange of Accounting Management Department or Financial Thailand’s regulations, as well as disclosure of related Planning Department under the Finance and Control transactions of the Bank according to recognized Division and their related persons are required to accounting standards and rules of the Bank of disclose their shareholding information in businesses, Thailand. Disclosures of related transactions are their directorship, or their authority to manage or shown in the Notes to the Financial Statements, under control majority votes in the shareholders meeting, “Related Party Transactions”. The Bank uses the same including the right to control the election and removal criteria as used with general customers to consider of directors or the assignment of any other person to be connected transactions, in accordance with defined the nominee of their shareholding or management, procedures necessary to support the Bank’s business or the authority to control businesses. The disclosure operations, and in a manner consistent with the Bank’s must be made in the Bank’s database, which is under strategies in the best interests of shareholders. the responsibility of the Information Management In 2011, the Bank had no connected transactions Department that has the responsibility to update subject to disclosure to the Stock Exchange of Thailand. the information regularly for use by the Credit Policy • Reviews of connected transactions were carried out in and Risk Management Department. The monitoring accordance with the plan. In cases where the Bank and control of credit extensions and investment becomes involved in any related party transaction, must follow the rules of concerned regulatory agencies. the Bank is subject to report to the Audit Committee. Information on the benefits of directors, officers In this regard, the Bank’s directors and employees in the position of Senior Executive Vice President must follow the Conflicts of Interest Prevention or equivalent and higher, and those in the position of and Connected Transaction Policy as mentioned above, Department Head or equivalent in the Financial in accordance with official regulations. Accounting Management Department or Financial Planning Department, under the Financial and Control Internal Control and Auditing Systems Division and their related persons must be reported to The Board of Directors and the Bank’s Management have the Board of Directors by the Office of Corporate placed particular emphasis on an efficient internal control system Secretary when a transaction between the Bank and promotion of an appropriate business culture, recognizing and the person related to the Bank’s directors the importance of risk management and the adequacy of the and such persons is brought into consideration, internal control system in every business undertaking. The Bank seven days before the Board of Directors Meeting. requires all units to comply with the best practices for internal • The Bank has disclosed details of every related or control as a guideline for the Bank’s business operations and connected transaction that may involve conflicts of employees’ practices. The Bank also set up a Risk Management interest according to the Office of the Securities Unit and a clear risk management policy. The Audit Committee and Exchange Commission and Capital Market has the duty and responsibility to review the effectiveness Supervisory Board’s criteria, in the Annual Reporting and adequacy of all risk management processes and internal Form (56-1 Reporting Form), as well as in the Bank’s control systems by discussing and evaluating operational results Annual Report and other reports, as the case may be. with the Compliance and Audit Division on a continuing basis. Annual Report 2011 Corporate Governance 249

These discussions include consideration of the appropriateness The Compliance and Audit Division, which is independent of the scope of work, roles and responsibilities, audit plans, in its operation and reports directly to the Audit Committee, audit conclusions with regard to the adequacy and effectiveness carries out the risk-based audit function and monitoring of the risk management, internal control, and governance of the operations of the KASIKORNBANK FINANCIAL processes, as well as the monitoring of compliance with CONGLOMERATE. The audit methodology is based on the Bank’s Articles of Association and laws and regulations. a risk assessment of the Bank and the audited units, Major recommendations or material deficiencies must be reported and the scope covers compliance with regulatory agencies, to the Board of Directors in a timely manner for effective action. the Bank’s operational procedures, and the Statement To create an appropriate control environment, written of Business Conduct, as well as an assessment of the policies and operational procedures, training and orientation adequacy and effectiveness of the risk management and programs, an operational manual providing information internal control system, the efficiency of resource management, on rules and regulations, a professional Code of Conduct, and the accuracy and reliability of information. Moreover, a regular self-assessment program, and standardized the Compliance and Audit Division provides consulting disciplinary actions for gross offenses have been established. services to the audited units, according to the agreed scope, These also ensure common understanding as well as capabilities with the objective of increasing the value and improving that will lead to efficient, transparent, and fair operations for the operations of the KASIKORNBANK FINANCIAL the benefit of all stakeholders. In addition, in order to strengthen CONGLOMERATE. The Compliance and Audit Division the supervision aspect and to promote a control culture applies the concept of continuous audit in its audit process. that is consistent on all levels of the organization, the Bank The Division constantly evaluates and improves the quality organized a course entitled “Governance Risk Management of its work as measured against the generally accepted and Compliance”, which has been incorporated into international auditing standards. Additionally, the Internal the executive training course. Audit Department, which is an independent unit, has been Control activities are an integral part of day-to-day assigned as another channel for reporting complaints operations. Appropriate segregation of duties is embedded and suspicious conduct. This ensures that the Bank to create a proper “check-and-balance” system for operating has an appropriate and transparent whistle blowing staff, supervisors, and performance assessment. Potential process and complies with good corporate governance conflicts of interest are identified and subject to careful standards. monitoring, in accordance with regulatory requirements The Bank is aware that a system of effective internal and the Bank’s regulations. controls is a critical component of the Bank’s management IT systems have continuously been upgraded to provide and a foundation for the “safe and sound” operations of accurate, up-to-date, and adequate information for timely the Bank. These features help to ensure that the goals decision-making by Management and the Board of Directors. and objectives of the Bank will be met, that the Bank Systems include the financial data system, as well as operational will achieve long-term profitability, and will maintain reliable and compliance databases, to monitor the effectiveness of financial and managerial reporting. Such a system can the internal control system for prompt corrective action against also help to ensure that the Bank will comply with laws significant deficiencies. The Bank also provides effective and regulations as well as policies, plans, and internal communication channels to ensure that all employees understand rules and procedures, and prevent the risk of unexpected and adhere to the policies and procedures affecting their duties losses or damage to the Bank’s assets and its reputation. and responsibilities. The Bank, therefore, monitors the effectiveness of the internal Annual Report 2011 250 Corporate Governance

control system through regular operations and periodic • The respective audit company including individuals assessments, so as to be assured of the system’s consistency or business entities related to the auditors and capability in managing the changing risks at different and the respective audit company, totaling periods of time. Any detected irregularities are immediately Baht 13,771,000 in the past accounting year. reported to responsible managers, and significant findings 2. Non-Audit Fees: are appropriately reported to senior management The Bank and subsidiary companies have paid non-regular and the Board of Directors. auditing fees, i.e., special purpose audit, legal and tax service engagements to Perform Agreed-Upon Procedures Risk Management and consulting services irrelevant to auditing to: The Risk Management Committee is responsible for • Auditors of the Bank totaling Baht -0- over the past designating organization-wide risk management policies under accounting year, together with future payments the guidelines established by the Board of Directors, to whom of Baht 760,000, due on incomplete work in the past the results must be reported regularly. The Bank has outlined accounting year. the risk management process, key steps of which include • The respective audit companies or their independent risk identification, assessment, monitoring and control, contracted auditors, including individuals or business and reporting. Moreover, the Bank emphasizes early warning entities related to the auditors and their respective indicators, monitoring of key risk, exposures and concentration, audit companies, totaling Baht 7,480,000 as well as regular reviews of the sufficiency of the risk over the past accounting year, together with future management system and its effectiveness. The details of payments of Baht 9,030,000, due on incomplete work risk management are disclosed in the section entitled in the past accounting year. Risk Management and Risk Factors. 5.5 Self-Assessment by the Board of Directors Appointment of External Auditors and Consideration of The Bank has established an annual self-assessment Audit Fees plan for the Bank’s Board of Directors. It serves as a tool The Audit Committee considers the qualifications for reviewing performance, as well as issues and obstacles and performances of external auditors for recommendation facing each director over the past year. It also helps to the Board of Directors for their annual appointment, increase the operational effectiveness of the Board. and the proposed audit fees for further consideration and Performance assessment of the Board of Directors is approval by the General Meeting of Shareholders. The list of conducted in two ways: the overall performance assessment external auditors to be proposed as the Bank’s auditors must of the Board and the performance assessment of each also be endorsed by the Bank of Thailand. individual director. To facilitate this, the Bank has developed In 2011, the remuneration for external auditors included: an assessment form consistent with the Statement of 1. Audit Fees: Corporate Governance Principles, as well as the duties The Bank and subsidiary companies have paid audit and responsibilities stated in the Board of Directors Charter. fees to: The Board of Directors conducts self-assessments once • Auditors of the Bank, totaling Baht 8,534,000 a year, and the assessment results are then analyzed in the past accounting year. and evaluated to indicate the level of achievement of Annual Report 2011 Corporate Governance 251

objectives for self-assessment by the Board of Directors, tied directly to the performance of the Bank and the performance as established by Bank regulations. The Corporate Secretary of each individual. The Human Resources and Remuneration submitted the 2011 performance assessments to directors, Committee shall propose remuneration to the Board of Directors including 6 topics: (1) Structure and characteristics of the Board; for consideration. (2) Roles and responsibilities of the Board; (3) Board meetings; The General Meeting of Shareholders No. 99, on April 7, (4) Discharge of duties of the Board; (5) Relationship with 2011, approved director remuneration and bonuses. A director the Bank’s Management; (6) Self-development of directors who is also a member of other board committees shall and executive development. receive additional remuneration according to the increased The self-assessment process is also applied to responsibilities. Details of remuneration to directors and four Board Committees - Audit, Corporate Governance, executives are as follows: Human Resources and Remuneration, and Risk Management. 1. Remuneration All Board Committees conducted self-assessments in 2011, 1) Remuneration for directors: In 2011, 16 directors and the assessment results have been presented to the Board received remuneration as directors and as members of Directors. of the Advisory Directors to the Management The Chief Executive Officer and President also undergoes Committee, Audit Committee, Corporate Governance self-assessment in order to compare his actual performance with Committee, Human Resources and Remuneration the Bank’s targets and the annual business plan. The Human Committee, Risk Management Committee, Resources and Remuneration Committee is responsible for and as legal adviser, together with a bonus submitting the assessment results to the Board of Directors at the rate of 0.5 percent of the dividend payment, for consideration. The self-assessment of the Chief Executive totaling Baht 67,278,660. Officer and President are specified as part of his performance 2) Remuneration for Advisers to the Board of assessment in the Board of Directors Charter. The Chairman Directors: totaled Baht 1,689,600. of the Human Resources and Remuneration Committee 3) Remuneration for executives: then submits the Board’s assessment results, together with • Executives in the position of First Senior their opinion, to the Chief Executive Officer and President. Vice President or equivalent, totaling 30 persons, received remuneration including salaries, 5.6 Remuneration to Directors and Executives living expenses, and bonuses from the Bank, The Bank has established a set of well-defined and totaling Baht 189,698,718. transparent remuneration policies for directors. The Human • Executives in the position of Executive Resources and Remuneration Committee is responsible Vice President or equivalent and higher, for reviewing these policies, taking into consideration totaling 21 persons, received remuneration the appropriateness of remuneration with respect to including salaries, living expenses, and bonuses the scope of responsibilities of each director to ensure that from the Bank, totaling Baht 262,156,323. the Bank’s remuneration is comparable to that of other In summary, executives in the position of First Senior commercial banks. Vice President or equivalent and higher, totaling 51 persons, Remuneration to executives is paid according to received remuneration including salaries, living expenses, the policies and criteria set by the Board of Directors. It is and bonuses from the Bank, totaling Baht 451,855,041. Annual Report 2011 252 Corporate Governance

Remuneration for Directors in 2011

Mr. Banyong Lamsam Received remuneration as Chairman and Advisory Director to the Management Committee, totaling Baht 7,128,000, and a bonus of Baht 3,789,030. Pol. Gen. Pow Sarasin Received remuneration as Vice Chairman and Advisory Director to the Management Committee, totaling Baht 5,322,000; and as Chairman of the Corporate Governance Committee, amounting to Baht 396,000, and a bonus of Baht 2,841,775. Mr. Banthoon Lamsam Received remuneration as a director, totaling Baht 1,200,000, and a bonus of Baht 1,894,515. Dr. Prasarn Trairatvorakul(1) Received a bonus of Baht 619,460. Mr. Sukri Kaocharern Received remuneration as a director and Advisory Director to the Management Committee, totaling Baht 2,400,000; as a member of the Corporate Governance Committee, amounting to Baht 264,000; and as Chairman of the Risk Management Committee, amounting to Baht 396,000, and a bonus of Baht 1,894,515. M.R. Sarisdiguna Kitiyakara(2) Received remuneration as a director, totaling Baht 900,000; and as Chairman of the Audit Committee amounting to Baht 594,000, and a bonus of Baht 1,894,515. Mr. Somchai Bulsook Received remuneration as a director, totaling Baht 1,200,000; as a member of the Audit Committee amounting to Baht 660,000; and as Chairman of the Human Resources and Remuneration Committee, amounting to Baht 385,000, and a bonus of Baht 1,894,515. Ms. Sujitpan Lamsam Received remuneration as a director, totaling Baht 1,200,000; and as a member of the Risk Management Committee, amounting to Baht 264,000, and a bonus of Baht 1,894,515. Professor Khunying Suchada Received remuneration as a director, totaling Baht 1,200,000; and as a member, Kiranandana(3) and Chairperson of the Audit Committee, amounting to Baht 693,000, and a bonus of Baht 1,894,515. Professor Dr. Yongyuth Received remuneration as a director, totaling Baht 1,200,000; as a member of the Corporate Yuthavong(4) Governance Committee, amounting to Baht 264,000; and as a member of the Audit Committee, amounting to Baht 165,000, and a bonus of Baht 1,894,515. Dr. Abhijai Chandrasen(5) Received remuneration as a director and legal adviser, totaling Baht 5,160,000; and as a member of the Human Resources and Remuneration Committee, amounting to Baht 242,000, and a bonus of Baht 1,894,515. Ms. Elizabeth Sam Received remuneration as a director, totaling Baht 1,200,000; and as a member of the Audit Committee, amounting to Baht 660,000, and a bonus of Baht 1,894,515. Dr. Schwin Dhammanungune(6) Received a bonus of Baht 1,504,070. Professor Dr. Pairash Received remuneration as a director, totaling Baht 1,200,000; and as a member of Thajchayapong the Human Resources and Remuneration Committee, amounting to Baht 264,000, and a bonus of Baht 1,894,515. Annual Report 2011 Corporate Governance 253

Mr. Hiroshi Ota Received remuneration as a director, totaling Baht 1,200,000; and as a member of the Corporate Governance Committee amounting to Baht 264,000, and a bonus of Baht 1,894,515. Ms. Kobkarn Wattanavrangkul(7) Received remuneration as a director, totaling Baht 1,100,000; and as a member of the Human Resources and Remuneration Committee, amounting to Baht 242,000, and a bonus of Baht 321,660.

Remarks: (1) Dr. Prasarn Trairatvorakul received a bonus from a dividend payment for the 2H10 operating results prorated by his term in office. (2) M.R. Sarisdiguna Kitiyakara passed away on September 21, 2011. (3) Prof. Khunying Suchada Kiranandana was appointed Chairperson of the Audit Committee on September 29, 2011. (4) Prof. Dr. Yongyuth Yuthavong was appointed a member of the Audit Committee on September 29, 2011. (5) Dr. Abhijai Chandrasen was appointed a member of the Human Resources and Remuneration Committee on January 27, 2011. (6) Dr. Schwin Dhammanungune resigned from his directorship on January 1, 2011, and received a bonus from a dividend payment for the 2H10 operating results. (7) Ms. Kobkarn Wattanavrangkul was appointed as a director and a member of the Human Resources and Remuneration Committee on January 31, 2011.

2. Other remuneration as well as information related to the Bank, clarifications on 1) Remuneration for directors: none legal obligations, regulations related to the directorship of listed 2) Remuneration for advisers to the Board of Directors: none companies, regulations related to the Board Committee’s charters, 3) Remuneration for executives: In 2011, the Bank the Bank’s core policies, and the manual for directors of contributed Baht 5,156,727 to the provident funds for financial institutions and securities companies, as an overall the Bank’s executives in the positions of First Senior process to promote understanding among directors about Vice President or equivalent, totaling 30 persons, their roles and the Bank’s business operations. Information on and Baht 6,803,890 to the provident funds for the the business operations of the Bank has also been continuously Bank’s executives in the positions of Executive Vice provided in the forms of documents and presentations President or equivalent and higher, totaling 21 persons, in meetings. In 2011, Professor Dr. Yongyuth Yuthavong, making a total contribution of Baht 11,960,617 for an independent director, participated in the Financial executives in the positions of First Senior Vice Institutions Governance Program organized by the IOD. President or equivalent and higher, totaling 51 persons. In addition, the Human Resources and Remuneration Committee has considered executive development and 5.7 Professional Development for Directors and Executives succession plans for the positions of Chief Executive Officer, To enhance the operational efficiency of the Board of President, and other senior executives, taking into account Directors, the Bank continued to implement a policy of supporting different factors, e.g. the qualifications, knowledge, competencies directors, executives, and staff performing duties related to and experiences required for each position. The performance of corporate secretary, compliance, internal control, and corporate potential executives is evaluated in order to formulate individual governance, in attending seminars and training courses at development plans; and rotation of responsibilities is undertaken the Thai Institute of Directors (IOD), the Stock Exchange of to ensure that they will gain greater understanding and hand-on Thailand, and other independent institutions, as planned. experience, preparing them for organization-level management. The Bank has organized orientations for new directors, Criteria and a list of persons qualified for these positions are to provide them with information on their roles and responsibilities, to be reviewed regularly and reported to the Board of Directors. Annual Report 2011 254 Corporate Governance

DIVIDEND POLICY

The Bank’s Dividend Policy The Dividend Policies of Subsidiaries In determining dividend payments, the Bank will take into The Bank has not fixed a dividend payout ratio for consideration its operating results as well as long-term returns our subsidiaries. Their dividend payments shall depend on to shareholders. Dividend payments will be in accordance the operating results of each company. with Article 32 of the Bank’s Articles of Association, stating Dividend payments of subsidiaries to the Bank must be that no dividend shall be paid out of any money other than made in accordance with each company’s regulations on profits. In the event that the Bank has an accumulated loss, dividend payments that must be approved by a resolution of no dividend shall be paid. their General Meeting of Shareholders. Interim dividend Dividends shall be paid equally, according to the number payments are allowed. In paying dividend, subsidiary of shares held. Payment of dividends shall be subject to companies must record some profit. If there is an operating shareholder approval. The Board of Directors may pay loss, dividend payments are barred until such losses are shareholders an interim dividend from time to time, if there is recovered. In addition, at least one-twentieth (1/20) of sufficient profit for such payments, and shall report the same all profits after accumulated loss must be set aside as to the shareholders at the next shareholders meeting. provisioning reserves until provisioning reserves reach Dividend payments must also be in compliance one-tenth (1/10) of a company’s authorized share. with statutory requirements, including the Bank of Thailand Notification, Re: “Classification and Provisioning of Financial Institutions” stating that if impaired assets are not written off, or full provisioning for impaired and unimpaired assets and contingent liabilities has not yet been set aside, banks cannot pay dividends or other benefits to shareholders. In addition, the Bank of Thailand Notification, Re: “Accounting Treatment of Financial Institutions” states that banks may not use unrealized profits or unrealized cashflow receivables or gains derived from non-material liquidation of assets that cause banks to post higher profits or lower losses than usual for dividend payments. Annual Report 2011 Corporate Governance 255

FACTORS AFFECTING INVESTMENT DECISIONS

Legal Disputes 2. Pending cases in court are as follows; 1. The Bank is not involved in any legal dispute There is a total of 179 pending cases in court, in which the Bank is a litigant or a concerning party with originated from the ordinary course of the Bank’s business, any other entities, as follows; equal to the total litigated amount of approximately 1.1 cases that may cause any negative impact Baht 7,727 million, in which the Court of First Instance to assets of the Bank or subsidiaries in has awarded judgement in favor of the Bank. There are an amount greater than 5% of its shareholder 47 cases that are still on trial in higher courts, with a litigated equity, according to the latest fiscal year-end. principal of approximately Baht 6,048 million. The Bank’s 1.2 cases that may have a materially adverse effect Management is under the opinion that all of the aforementioned on the Bank’s business operations; unable to lawsuits will have no material impact on the Bank’s business estimate an amount. operations. 1.3 cases that do not originate from the ordinary course of Bank’s business. CORPORATE SOCIAL RESPONSIBILITY (CSR) ACTIVITIES

257 Business Activities 266 Environment and Safety 269 Employees 274 Social Activities 281 Plans for CSR Activities in the Future Annual Report 2011 Corporate Social Responsibility (CSR) Activities 257

CORPORATE SOCIAL RESPONSIBILITY (CSR) ACTIVITIES

As a financial conglomerate operating in conformity Corporate Governance Committee and the Board of with the Statement of Business Conduct, as well as Corporate Directors on a regular basis. CSR projects and activities Governance and Corporate Social Responsibility (CSR) may be summarized under four headings. Principles, KASIKORNBANKGROUP (KGroup) aims to become a sustainable and transparent business with sound Business Activities* social responsibility. The Board of Directors has assigned Business venture under the Corporate Governance the Corporate Governance Committee to supervise CSR and CSR Principles has always been embraced by KGroup, activities and has approved the CSR policy, incorporating along with our firm commitment to promote and support the following mandates. the development of business potential for sustainable • To strictly adhere to the Statement of Business Conduct, and continuous growth of customers in the corporate, and to participate in social development and environmental SME and retail segments. protection A number of projects were carried out over the past year, • To encourage employees at all levels to strictly abide by from knowledge sharing and advisory services to customer the Code of Conduct and CSR Principles networking, equipping customers with knowledge for more • To launch CSR activities for the benefit of all stakeholders • To arrange workplaces with an emphasis on safety, effective business practices. KGroup acted as an intermediary occupational health, environmental concerns, conveying to customers and the general public information, and facilitation for employees and customers knowledge, and the operating philosophies and practices • To promote environmental preservation and contribution of the Bank for consistency with and in response to to society the government’s business promotion policies. KASIKORNBANKGROUP has harmoniously integrated CSR concept into our business plans, utilizing knowledge A Rigorous Culture of Credit gained from past CSR experience to create innovations of the KGroup has adhered to a policy of extending only greatest benefit to both business and society. CSR activities justifiable credit. The Bank has a culture as well as policies were ongoing throughout 2011 with focus on participation and regulations avoiding grants of credit to certain types of by employees, customers and communities. KGroup CSR business, including those in contravention of moral principles activities were allocated a budget of 1-1.5 percent of annual and social norms, those involved with speculation for profit, net profit, and CSR activity reports were submitted to the illegal activities, encroachment upon and/or negatively

* In compliance with the Core Indicators of the Global Reporting Initiatives Guidelines (GRI) Profile Disclosure Description Product and Service Impact FS 1 Policies with specific environmental and social components applied to business lines. FS 2 Procedures for assessing screening environmental and social risk in business lines. Annual Report 2011 258 Corporate Social Responsibility (CSR) Activities

affecting mangrove areas and violation of environmental Green Lending* legislation. Of the utmost importance, priority has been The Bank has valued alternative and renewable energy, given to the environmental credit policy, based on responding to business demand and educating customers the awareness on and accountability for our operations and the general public through the “Green Bank, Green that could affect the environment. Thus, credit approval Financing and Green Projects” concept. The Bank has must conform to environmental legislation. This will lead to provided financial consultation and financing to over 20 solar sustainable development for society as a whole. KGroup projects and to no less than three wind projects. The Bank credit approval policies have been geared towards has disseminated knowledge of renewable energy in environmental concerns in the following ways. a variety of forums, such as at the Executive Dinner Talk • Beyond the viability of the business, environmental for Alternative Energy Business that was jointly organized impact assessments are a key consideration for with the Stock Exchange of Thailand, and participation credit approvals. in the opening of the Solar Farm Learning Center, Amphoe • Environmental impact assessments are strictly required Sung Noen, Nakhon Ratchasima. The Bank also developed with credit applications from industries and businesses the K-Energy Saving Guarantee Program, providing likely to have environmental or social impacts.* businesses consultation for full-cycle energy conservation of SMEs and financing their investments in energy Green Concept “Green Bank, Green Financing, Green Project” management for maximum savings. This initiative should In keeping with the commitment to CSR, it is KGroup reduce energy usage and benefit the environment nationally. policy to develop and promote environmentally-friendly At the same time, these policies will allow businesses products and technologies and to inspire environmental to be strengthened through long-term cost savings, awareness and cooperation in preserving the earth in and in turn buoying national economy in these times of critically among all target groups. high and rising energy prices.

* In compliance with the Core Indicators of the Global Reporting Initiatives Guidelines (GRI) Profile Disclosure Description Economic Performance Indicators EC 08 Development and impact of infrastructure investments and services provided primarily for public benefit through commercial, in-kind, or pro bono engagement. EC 09 Understanding and describing significant indirect economic impacts, including the extent of impacts. Environmental Performance Indicators EN 5 Energy saved due to conservation and efficiency improvements EN 6 Initiatives to provide energy-efficient or renewable energy-based products and services, and reductions in energy requirements as a result of these Initiatives. Annual Report 2011 Corporate Social Responsibility (CSR) Activities 259

K-ATM to Reduce Carbon Footprint* of a burden on the environment, while all necessary The “K-ATM to reduce carbon footprint” project transaction data is retained. The smaller slips reduce has been continually implemented by KGroup to allow paper usage by about 30 percent. Customers can the public to participate in preserving the global environment also opt not to receive an ATM slip, an alternative through innovations that serve customer needs while path to reducing paper usage. pursuing the Bank’s “Going Green” commitment for a sustainably clean and bright world. The program includes Business Strength and Sustainability Through K SME Care enhancement of energy efficient ATMs and smaller KGroup has strived to promote “boundless business” ATM slips, cutting down resource usage and helping to sustainable growth for SMEs, recognizing them as a major cut back global warming. Concrete results include the followings: driver of the Thai economy. KBank works with allies in the • Power consumption has been reduced at some ATMs public and private sectors, including leading universities, by keeping the lighting on for only four hours a day the Thailand Productivity Institute, the Institute for Small instead of the previous 12, at 872 K-Lobbies and Medium Enterprise Development and the National and 299 stand-alone ATMs. Science and Technology Development Agency to provide • The time that ATM air conditioners are on have been relevant knowledge and news, aside from financial products, shortened from 18 to 10 hours a day, reducing power to our SME customers. A survey of business needs and air conditioner usage by 61 percent, and reducing shows that up-to-date news and information along with carbon dioxide emissions from power plants, a major access to competent business advices are important source of greenhouse gasses, by as much as elements in building sustainable business in today’s 6,700 tons a year. environment. These are the bases of K SME Care projects. • ATM slips have been reduced from 8.0 x 11.2 to The Training Series offers short-term business courses 8.0 x 8.5 centimeters, appropriate for use and less with the following salient features. • Courses are not limited to Bank customers and are offered free of charge.

* In compliance with the Core Indicators of the Global Reporting Initiatives Guidelines (GRI) Profile Disclosure Description Economic Performance Indicators EC 08 Development and impact of infrastructure investments and services provided primarily for public benefit through commercial, in-kind, or pro bono engagement. EC 09 Understanding and describing significant indirect economic impacts, including the extent of impacts. Environmental Performance Indicators EN 5 Energy saved due to conservation and efficiency improvements. EN 6 Initiatives to provide energy-efficient or renewable energy-based products and services, and reductions in energy requirements as a result of these Initiatives. Annual Report 2011 260 Corporate Social Responsibility (CSR) Activities

• The courses are intensively focused, and cover at five different cinemas to over 2,000 participants. Five topics doing business from a full range of perspectives. were covered by renowned speakers under the general Courses are continually brought up to date and tailored heading of Creative Economy. to the needs of participants in each different region. Over the five years since its inception, K SME Care • Learning takes the form of direct transfers of has given 15 sets of classes to over 7,000 participants knowledge and experience from experts in different nationwide. Participants are all members of the K SME Card fields and from successful business persons. Network Club, a learning society where business knowledge • Decision making skills are honed through business and experience in supporting sustainable business growth simulation games. is shared. • Activities are organized so as to foster network building among participants and also extending out K SME Academy, a Further Advancement by Sustainable to the more than 7,000 members of K SME Care Business Plan Network Club nationwide, so that business colleagues KASIKORNBANKGROUP and the Thammasat Business can share knowledge and experience. Consulting Center (TBCC) have joined forces to develop In 2011, K SME Care offered courses in Creative an intensive training course entitled K SME Academy for Economy to the 14th and 15th Training Series participant the Privilege group of SME Medium Segment, under K SME groups. Classes were held in Bangkok, Chiang Mai, Value Plus program. Khon Kaen, Chon Buri and Phuket, and attended by more The K SME Academy program is aimed for a further than 1,300 participants. The most outstanding activity advancement of mid-sized SME customers’ business of the year was the K SME Care Business Forum 2011, via business planning comprising definitive targets and in the innovative format of giving presentations simultaneously work plans with clearer investment and financial planning

K SME Care projects to promote sustainable growth for SMEs K SME Care Business Forum 2011, under the “Creative Economy” concept Annual Report 2011 Corporate Social Responsibility (CSR) Activities 261

for more systematic and efficient business undertakings. 300 business plans were entered in the contest. A panel As a result, the Bank will be able to provide relevant products of judges was to select the best business plans nationally and financial services to support long-term growth of SME’s and announce winners and prizes by December 15. more efficiently, The K SME Academy program has been However the widespread flooding towards the end of organized for two years with eight training classes and 222 the year forced the final selection and announcement of participating SMEs. winners to be postponed to March 8, 2012.

K SME: Realize the Dream of Thai Business 2011 K SME Care Knowledge Center: The First of its Kind This year, KGroup and the College of Management in Thailand Mahidol University (CMMU), organized K SME: Realize KASIKORNBANKGROUP has opened the K SME Care the Dream of Thai Business 2011, a training course Knowledge Center, the first of its kind in the Thai banking in writing business plans for start-ups, helping aspiring business, on the second floor of Chamchuri Square Building, and new entrepreneurs to lay solid foundations for their to provide advisory service solutions to all SME proprietors new businesses. The program included a business plan and those wishing to start their own businesses. Interested competition open to proprietors who have been in business persons can make an appointment to use our advisory less than a year and students nearing completion of services. their bachelor’s degree. CMMU shared their knowledge Learning services are offered in three forms: through training courses and workshops, conveying 1. Business Intelligence: A knowledge base for SMEs; the importance of the business plan along with techniques KBank works with business partners from many for creating a clear and appropriate plan for one’s own organizations to compile news and information business. There were over 1,000 participants and over beneficial to SMEs. Services include SME GURU

“K SME: Realize the Dream of Thai Business 2011” program, in cooperation with K SME Care Knowledge Center: The First of its Kind in Thailand the College of Management, Mahidol University Annual Report 2011 262 Corporate Social Responsibility (CSR) Activities

through which business specialists give one-on-one Knowledge Center facilitates SMEs in building up consultation on such matters as brand building, strong networks, through activities for SMEs to listing on the stock market, accounting and more. meet and share experiences. SME Society brings The Knowledge Corner is a study zone providing operators together with new trading partners through business-related books, magazines and analyses. Business Matching activities. Online Business Online Intelligence provides internet access to Matching is a networking tool available through business research and information in databases www.ksmecare.com. throughout the world. The Bank has been working to provide online 2. Business Training: Seminars, training and other channels giving easy access to business knowledge activities addressing SME needs at every stage and networks for all types of SME. The website of growth. The Start-up Business course trains www.ksmecare.com provides centralized access to entrepreneurs for the initial stages of starting a new business knowledge, including news, articles and research business, conveying basic knowledge and inspiring from KResearch; online seminars are held and much passion for business success. The Business Owner other information is available through the site. Entrepreneurs course helps entrepreneurs to develop and expand identify new business opportunities with Online Business their businesses while maintaining stability Matching, and the K SME Premium Mall - a joint project and sustainability. The Lifestyle course trains of KBank and Tarad.com - provides online global business persons for work-life balance, such as trading solutions. Throughout 2011, the Bank continued gift wrapping techniques, photography tips and the art to form new alliances with various organizations, of persuasion in presentation. such as Microsoft Thailand and Google Thailand, 3. Business Network: Networks are a most important as part of our effort to enhance our capacity to element of any successful business. K SME Care assist SMEs.

Participants in the 14th training series of K SME Care projects to promote Activities to build up strong business networks among members of K SME Care sustainable growth of SMEs Annual Report 2011 Corporate Social Responsibility (CSR) Activities 263

In 2011, more than 10,000 SME entrepreneurs used KBank: The Bank for All the services of the K SME Care Knowledge Center and there In addition to knowledge-based support to our business were over 20,000 visitors at www.ksmecare.com on average and retail customers as well as general public by conveying each month. Meanwhile, the 2012 learning program will be financial and business management skills, KGroup has redesigned as AEC Flagship Knowledge Center, emphasizing developed products and services for convenience and the enhancement of SME capabilities in preparation for accessibility, i.e., the inception of ASEAN Economic Community (AEC) in 2015 • The Savings for Future Benefit program which KGroup hopes that all these offerings will assist our allows the self-employed and others with limited SME customers in building solid business foundations and documentation showing a steady income to use provide the tools to stand firmly on their own while advancing their savings history for loan applications. through the path of success, with KGroup as partner. • K-Personal Loan for Pensioners: personal loans for government retirees using pension inheritance rights AEC: National Agenda for SMEs as collateral. KGroup recognizes importance of encouraging • K-Bank to Post: Funds transfers from any of the over and helping our customers to strengthen their businesses, 7,500 K-ATMs nationwide to any one of 1,200 post especially in preparation for creation of the ASEAN Economic offices countrywide. Jointly developed with Thailand Community as a single market and production base in 2015. Post Co., Ltd. the service provides convenience to The AEC: National Agenda for SMEs is another program those in outlying areas with neither bank branches introduced by KGroup to provide knowledge and information nor ATMs. The recipient is required to present only through the K SME Care program assisting SMEs in coping an acknowledgement code and national ID card with the direct and indirect changes that may come with number to collect the transferred funds at any post the AEC. The AEC Self Assessment Tool has been developed office. to measure SME preparedness for AEC implementation.

“AEC: National Agenda for SMEs” to provide knowledge and information through The “Savings for Future Benefit” program, which allows the self-employed to use the K SME Care program assisting SMEs in coping with the inception of the ASEAN their savings history to apply for loans Economic Community (AEC) Annual Report 2011 264 Corporate Social Responsibility (CSR) Activities

K-WePlan Academic Development (IAD), King Mongkut’s KASIKORNBANKGROUP promotes financial management University of Technology, Thonburi, the Ministry of and planning among our customers and the general public. Tourism and Sports, the Si Sa Ket Chamber of K-WePlan provides financial advisory services helping Commerce, and the Faculty of Medicine, Chiang Mai customers better manage their finances and achieve their University. There were 136 such events in 2011 financial goals. Activities under this program include attracting more than 4,000 attendees. the followings: • Providing online financial advisories on Facebook, • Disseminating financial planning knowledge and “How to Complete your Personal Income Tax Form” related articles through the www.k-weplan.com and “How to Prepare Yourself for a Happy Retirement”, website. There are also financial news and a DIY through which KBankLive members consulted with calculator for basic financial planning. K-WePlan specialists. These activities were well • Developing the K-Saving Memo computer program for received, with a great number of ideas as well as recording income and expense in order to promote questions and answers posted. savings discipline and simplify basic financial • Participating in financial expositions in Bangkok management. Available both in CD format and online, and other provinces. For example, the Money Expo the program had been distributed to the general public at Chiang Mai, Songkhla and Bangkok, drawing a great for three years in a row. Available at www.k-weplan.com, deal interest from those attending financial health over 20,000 copies were downloaded in 2011. checkup and basic financial planning activities. • Giving lectures on financial management with such • Giving joint support with the SET for the Young topics as Smart Financial Planning and Preparing Financial Star Competition for the fourth consecutive for a Happy Retirement. Lectures were given at year. The competition honors the best financial various educational institutions, and other private planners among university students and promotes and public organizations such as the Institute of personal financial planning among young Thais.

K-WePlan promotes efficient financial management among customers. A computer program to promote financial management and planning for customers and the general public is available in CD format and online. Annual Report 2011 Corporate Social Responsibility (CSR) Activities 265

KGroup, in cooperation with Money & Banking magazine, • Aid to business customers for rapid recovery, held activities promoting a greater understanding of financial including repair and restoration credit lines management among the general public. Lectures were given for SMEs; loans guaranteed by the Small Business at financial institutions, public organizations, state enterprises Credit Guarantee Corporation (SBCG), as part our and private companies. Seminars were organized for cooperation with the public sector; extension of the general public and knowledge was disseminated through loan terms by as much as 10 years; and shoring up various media, including articles in Money & Banking liquidity through suspending principal and interest and financial advice given by specialists via Facebook chat. payments for up to six months. • Credit lines with effective interest rate for replacement Assistance for Flood-affected Customers and the Public of destroyed machinery, extended payment periods In response of the most extensive flooding in Thai history of up to seven years, no principal or interest payments towards the end of the year, KGroup launched a number of for up to six months and credit limit of up to financial and advisory assistance measures. 100 percent of machinery value. • An information center providing aid to flood-hit K-Home • A one-stop flood relief center at the K SME Care Loan customers for home, electrical appliance and furniture Knowledge Center, the second floor, Chamchuri repair and restoration. More than 8,000 technicians were Square, offering sales of goods and necessary supplies. available through the cooperation of more than 200 allied Many services were also provided, especially repair businesses. services, at special prices to SME customers and • KBank Big Cleaning by K Home Smiles Club: Over 300 K SME Care Network Club members. managers and staff joined in cleaning and restoration • Acting as a center for pooling assistance and advice activities and cleanup kits were given to K-Home from KBank allies such as the Office of Small Loan customers and to 200-plus housing projects. and Medium Enterprises Promotion (OSMEP) and the Department of Industrial Promotion (DIP).

KASIKORNBANKGROUP and “Money and Banking” magazine provided knowledge An information center provided aid to flood-hit K-Home Loan customers in house and information in financial management for the general public. rehabilitation, with the participation of more than 200 housing project allies. Annual Report 2011 266 Corporate Social Responsibility (CSR) Activities

• Organizing seminars to provide knowledge concerning efficiently, as well as being convenient for business contact measures that will be beneficial to business with customers and general public. Therefore, KGroup has rehabilitation during the post-flooding period, adopted the occupational safety, health and environmental for example, corporate communications during programs in compliance with the standards established the flood crisis, machine repair and bookkeeping. by the Ministry of Labor. Those programs are also consistent • Coordinating with the Japan Bank for International with recognized international standards. They include: Cooperation (JBIC) and 19 Japanese partner banks In 2011, KGroup was awarded Leadership in Energy to help flood-stricken Japanese business customers. and Environmental Design (LEED) Gold certification by Post-flooding assistance included credit limits for the U.S. Green Building Council (USGBC), an environmental business rehabilitation, workplace and machinery organization in the United States that supports and provides repair, or financial aids if their products had been knowledge under the concept of sustainable design. The LEED damaged by floods. The Bank launched other Gold certification affirms our commitment of not just ‘building assistance measures, including KBank Recovery green,’ but also ‘living green’, which has promoted our image Loan for SMEs, as well. on par with other world-class organizations. Aside from financial assistance, KGroup assessed • The sanitation systems installed in the buildings are the damage from the flooding closely and continued our there for the health and safety of personnel working assistance via other measures to help alleviate the hardship in these buildings, and include such systems as of our customers and enhance rapid resumption of their a two-stage air filtration system, plus air conditioning normal life and business. for clean air, free from outside air pollution; lighting systems with standardized lighting values for Environment and Safety comfortable eyesight; and ozone-treatment “Going Green” Commitment drinking water purification systems, etc. In addition, KGroup fully recognizes that safe, clean, and pleasant energy-efficient electrical appliances are used environments will help allow our employees to work more within the buildings.

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K SME Business Rehabilitation…Through the Flooding Crisis The Thailand Business Council for Sustainable Development and Thailand Environment Institute Foundation granted a certificate of emissions reduction to the Chaeng Watthana Building. Annual Report 2011 Corporate Social Responsibility (CSR) Activities 267

• Regarding KGroup concern towards the environment The Chaeng Watthana Building has been designed in society and in communities, emergency electricity and constructed in a manner consistent with LEED generators are installed with exhaust systems that standards. The building’s construction and improvements filter out smoke and smells, and have noise abatement also standards of the Thailand Energy & Environmental devices to prevent disturbing nearby communities. Assessment Method (TEEAM), which are design The highly efficient wastewater system provides guidelines and assessment of energy-saving and treated water to gardens and for use within the cooling environmentally-friendly buildings. system. Therefore, apart from enabling KGroup to Architecture under the “green building” concept involves significantly reduce water utility costs, the system characteristics that are simple yet creative, outstanding, also helps preserve the environment. elegant, energy-saving, and sustainable. • Exterior glass is insulated and laminated, a new “Green Building” Status of the Chaeng Watthana Building technology preventing heat from entering the building. for Environmental Sustainability The glass is self-cleaning, in order to combat dust The Chaeng Watthana Building is the third building of and filth; and it is anti-reflecting, so surrounding areas the Bank’s Main Offices that has been categorized as will not be disturbed by glare. a “green building”. It is our pride of having been recognized • The Chaeng Watthana Building’s interior has been as an exemplary organization in terms of energy conservation designed with the concept of openness in order to and environmental friendliness. KGroup has promoted knowledge make use of natural light for interior areas, to reduce on green architecture through seminars and study tours. electric light use and increase ventilation to assist In addition, books, pamphlets, video presentation and website the standard air conditioning system. Thus, the entire have been launched about the Chaeng Watthana Building. building is comfortably cool and consumes less energy. A permanent exhibition on our green buildings has also been • To save even more energy, all of the building’s set up in the entrance hall to provide related knowledge electric lights are energy-saving LEDs. and create shared inspiration among staff for organization • The Bank has installed a chemical-free wastewater development. treatment system equipped with direct electric

The Chaeng Watthana Building is the third building of the Bank’s Main Offices The Chaeng Watthana Building’s interior has been designed with the concept that has been categorized as a “green” building. of openness to make use of natural light and increase ventilation. Annual Report 2011 268 Corporate Social Responsibility (CSR) Activities

coagulation technology and ultra-efficient filters to • In addition, stairways have been constructed to provide water for use within the sanitary systems, connect six locations within the building for easier which helps the Bank reduce water utility costs by access to each floor, helping to reduce the use of as much as 50 percent. elevators and thus save electricity costs for the Bank. • As for the landscape, additional plots of land have been purchased for outdoor car parking, providing more “Green Building” Status of the Phahon Yothin Main Branch open space and green areas to the Chaeng Watthana Building Building. The outdoor car parking area has been With the Bank’s ‘Going Green’ commitment, the Phahon designed in a way that helps to reduce heat on Yothin Main Branch is also categorized as a green building. the hard parking surface, mitigating the so-called The design focused on a concept that will upgrade staff “urban heat island” effect, and to allow 80 percent of members’ quality of life in the Phahon Yothin Main Branch rainwater to permeate through, preventing water from and improve the interior design of the building for a modern being trapped in parking spaces. look in tandem with a changed work platform. In use for • The Bank has also reserved 166 parking spaces for more than 25 years, the Phahon Yothin Main Branch energy-efficient vehicles and bicycles, accounting Building’s indoor conditions are fairly good, but office devices for 5 percent of the total parking space in the building. as well as infrastructure equipment such as air conditioners • Meanwhile, building materials such as carpet, plywood, consume too much energy due to their dated technologies. medium-density fiberboard (MDF), adhesives and paint The Bank has carried out an interior renovation of the whole meet the requirements of “Green Label” and “Green building, including new interior architecture and piping Guard”, and are below the volatile organic compounds work system, but has left the external building structure (VOC) content limit, helping to improve indoor air and main infrastructure system unchanged. Inner walls have quality and prevent cases of “sick building syndrome”. been improved for modern, simple, and efficient function. Noise, water runoff and dust occurring during The design focuses on an open plan office for greater vision the building’s construction were strictly controlled. of workflow continuity, while all staff can equally access

The Chaeng Watthana Building’s interior has been designed for energy saving The Phahon Yothin Main Branch under renovation, including its piping work system and environmental friendliness. and floor plans, in an attempt to make the old building “green” in accordance with international standards. Annual Report 2011 Corporate Social Responsibility (CSR) Activities 269

external views and natural light. This will also allow the Bank • Installment of energy-saving remote control systems greater flexibility in adjusting the office plan in the future. for air conditioners Remote control systems had been Foreseeing the significance of energy and the environment installed in 369 branches, reduced carbon dioxide as critical global issues, the Bank would like the project of by 5,133 tons per year. making the old building green to be endorsed by international standards and deemed that LEED (Leadership in Energy Employees* and Environmental Design), established by USGBC KGroup has adopted a human resource policy (US Green Building Council), was internationally accepted wherein we seek to enhance job opportunities and boost and the most suitable with this endeavor. This renovation the potential of our staff toward professional excellence. project has achieved a LEED Gold rating, which affirms our This policy is consistent with business requirements commitment to energy and environmental conservation, and KGroup “Customer-Centricity” strategy that pave the along with improving working conditions of our employees, way for us to become an even more secure and innovative which helps to enhance the Bank’s image to the level financial institution, as well as being able to respond to achieved by other international organizations. the needs of customers more effectively. This is achieved via a number of established methods. We - Electricity-saving procedures for branches, the consistency • Undertake to recruit quality personnel and then of the Bank’s environmental focus, and future projects* enhance their competency to suit tasks that further Construction and renovation projects their career growth. • Third residential building construction at the • Motivate each employee to achieve better results by KASIKORNBANK Learning Center - Bang Pakong offering incentives to perform well, and encourage The building was constructed under a green building them to commit themselves to our organization. concept with a Platinum rating and opened for use on Also, we seek to enhance employee leadership skills December 16, 2011. The USGBC is in the process at every level, where appropriate. of assessing this business. • Organize and promote an internal organizational culture • Interior refurbishment of the Bank branches Non-toxic with emphasis on teamwork and customer-centricity. construction materials and furniture have been • Continuously promote joint efforts under the specified for refurbishment at all branches. KASIKORNBANKGROUP brand. • Replacing T8 light bulbs with T5 bulbs The project, implemented from 2008 to 2010, reduced carbon dioxide by 4,415 tons per year.

* In compliance with the Core Indicators of the Global Reporting Initiatives Guidelines (GRI) Profile Disclosure Description Environmental Performance Indicators EN 7 Initiatives to reduce indirect energy consumption and reductions achieved. EN 18 Initiatives to reduce greenhouse gas emissions and reductions achieved. Annual Report 2011 270 Corporate Social Responsibility (CSR) Activities

Compensation and Benefits Additionally, we offer other benefits such as loans for KGroup has adhered to the philosophy regarding the purchase of private vehicles and computers, scholarships compensation and benefits for better quality of life of and grants for education, financial stipends upon marriage employees. This philosophy is based on the following as well as other assistance, i.e., healthcare support for their principles: parents, spouses and children, help with home renovation, • Compliance with the rule of law and justice. special welfare in cases of accidental injuries, etc. • Competitiveness in the job market. • Staff competencies and expertise that meet the Employee Development* required tasks. KASIKORNBANKGROUP emphasizes personnel • Retaining competent employees and attracting development. Thus, various voluntary study courses are qualified persons to work for KGroup. provided to our employees to enhance their knowledge, • Motivation, e.g., via incentives, for employees to and expertise in consistence with KGroup strategic business perform better in the work delegated to them. plans, especially to achieve optimal customer satisfaction. • Consistency with the KGroup business strategies. KGroup employee study programs in 2011 included: Creation of K-Culture: Employee Benefits* 1. Customer-Centricity KGroup places much significance on benefits that 2. Professionalism improve employee living standards and provide those that 3. Innovation have the most meaningful impact: 4. Group-wide Teamwork 1. Housing The model for K-Culture core values as devised for 2. Healthcare KGroup encourages employee behaviors that serve as roles 3. Retirement plans models, especially when they are KGroup senior management 4. Severance pay staff, plus incentives for devoted service. Consistent 5. Educational subsidies for their children encouragement is supplied via diverse activities and campaigns

Suksamakki House, Hua Hin, a resort provided for the benefit of KBank staff “K-Culture” handbook, a constructive media to promote the organizational culture of KGroup core values Annual Report 2011 Corporate Social Responsibility (CSR) Activities 271

within KGroup. KGroup PR, including KASIKORNTV, 8. Listening to, and encouraging the expression of messages within our intranet system, other’s views; KASIKORNBANKGROUP Newsletter, in-house radio 9. Building good relationships; programs, etc., are used to encourage praiseworthy values 10. Assisting in problem-solving; and - and actions. 11. Creating trust. K-Leadership Program (K-Leadership’s 11 Desired These values are communicated via all internal media Behaviors) for to all management, supervisors and staff in order to KGroup consistently pursues employee development promote desired professionalism in management and facilitate at all levels, including those at senior management and the supervision of appropriate leadership behaviors. supervisory levels, because they are key to building teamwork The above guidelines for supervisors are presented and a positive corporate culture. KGroup supervisors are via a number of internal channels using short, concise and expected to be not only “competent” in their jobs but also easy-to-remember formats. For example, a song regarding in personnel matters by displaying fairness and appropriate the ‘11 behaviors’ of K-Leadership is often broadcast via behavior in all work-related situations. Thus, we have devised our in-house radio programs and also played at appropriate eleven elements in our behavioral guidelines as intrinsic to occasions. Desktop artwork depicting the 11 K-Leadership K-Leadership. They are: behaviors is placed on the desks of supervisory staff at 1. Paying attention and giving opportunities to First Vice President and higher levels, as well as on tables subordinates; in meeting rooms on all floors of our three corporate 2. Setting appropriate targets; headquarters buildings (Rat Burana, Phahon Yothin, 3. Giving clear and reasonable advice; and Chaeng Watthana). Activities are organized for staff 4. Offering suitable rewards; where they may express their views towards intranet 5. Praising appropriately; campaigns, which feature easy-to-answer questions related 6. Inspiring acceptance of changes; to KGroup leadership behavior. 7. Regularly monitoring staff performance; KGroup systematically plans and develops staff skills and expertise via:

K-Leadership Training Program KGroup personnel potentiality development program Annual Report 2011 272 Corporate Social Responsibility (CSR) Activities

• A training roadmap for all organizational job positions • Study courses that are relevant to staff tasking throughout the country - as well as those who work and financial institution business, e.g., such matters as at offices in China - in order to support our branch “compliance in anti-money laundering law”, have been expansion, wherein all sites must be staffed by provided for employees and others to whom the personnel trained and competent to KGroup standards. material is relevant. These courses are given in • Our Management Development Program (MDP) traditional text as well as e-learning formats. was enhanced in 2011 to include additional courses In 2011, the number of participants was 16,628 for senior management study. Each Annual Training employees, or 90 percent of total employees. Plan for supervisors and staff is meticulously devised • All e-learning study courses are regularly updated in accordance with our established overview for to keep them relevant. Employees are able to study training roadmaps, as well as the MDP, and is within at anytime and anywhere via devices accessible the budget for each department. In-house training to online content. In 2011, in-house learning activities facilities assist supervisors in planning their staff were rigorously promoted, doubling the number of members’ curricula. employees in attendance over the previous year.

Coursework and Attendance in 2011

Learning Courses in 2011 Number of Topics Number of Classes Number of Employees Attending In-house study courses 263 777 14,056 (83.86%) External study courses 381 n.a. 734 (4.38%) e-Learning 131 n.a.** 10,983 (65.53%)

Remarks: ** e-Learning is a self-study program, so its number of classes cannot be counted

* In compliance with the Core Indicators of the Global Reporting Initiatives Guidelines (GRI) Profile Disclosure Description Labor Practices and Decent Work Performance Indicators LA 3 Benefits for fulltime employees that are not provided to temporary or part-time employees, by major operations. LA 8 Education, training, counseling, prevention, and risk-control programs in place to assist workforce members, there families, or community members regarding serious diseases. LA 11 Programs for skills management and lifelong learning that support the continued employability of employee and assist them in managing career ending. Human Rights Performance Indicators HR 3 Total hours of employee training on policies and procedures concerning aspects of human rights that are relevant to operations, including the percentage of employee trained. Annual Report 2011 Corporate Social Responsibility (CSR) Activities 273

KGroup also promotes and enhances the living standards Songkran, or upon events where employees need of KBank staff families via diverse KGroup media, including: special care, such as during outbreaks of influenza. 1. Knowledge Sharing 1.3 KBank Newsletter “Kitchakan Samphan” (business 1.1 KASIKORNTV relationship) - Issued every first and third Monday of Our “Suk Kai Sabai Jai” (healthy body and mind) the month: program presents content related to healthcare in a broad • “Suk Kai Di Mi Suk” (Healthiness for Happiness) range of topics. The “K Style” program presents interesting is a column presenting healthcare-related issues. and worthwhile hobbies that can be balanced between work • “Mi Di Ma Bok” (Useful Tips to Share) is a column and leisure time. Also, our “Khui Len Len Yen Wan Suk” presents good and useful contents (‘Leisurely Talk, Friday Evening’) program is a radio and • “Sang Khon Keng Leng Khon Di” (Building and TV talk show presented on Friday evenings, centering on Taking Care of Competent and Good People), general beneficial issues related to health, sports, family, which is a column presenting contents related to shopping, holidays, financial management, tourism, dinning the enhancement of one’s potential. places, etc. 1.4 In-House Radio Programs 1.2 Items carried on Our Lotus Notes System: Our in-house radio programs offer beneficial spots on • K Life Balance eMagazine is an online magazine special occasions. The “Khui Len Len Yen Wan Suk” ((‘Leisure presenting lifestyle subject matter for our staff, Talk, Friday Evening’) program is a radio and TV talk show adhering to a balance between personal lives on Friday evenings. The program presents subject matter and work, published every second and fourth Monday on beneficial issues including health, sports, family, shopping, of the month. holidays, financial management, tourism, dinning places, etc. • K Tips presents useful articles for work and daily life, 2. “KGroup…Healthy Group” activities including physical and mental health care, financial Apart from providing knowledge via diverse in-house matters, family care, etc., issued as special editions media, KGroup also organizes an annual “KGroup…Healthy on various occasions including at the New Year, Group” program that campaigns for better healthcare among

KBank newsletter, “Kitchakan Samphan” “K Life Balance” eMagazine disseminated via KBank intranet system Annual Report 2011 274 Corporate Social Responsibility (CSR) Activities

The 8th Sino-Thai Forum Project, “Empowering Rural Development: Micro-Finance, The Painting Contest in Honor of His Majesty the King’s 84th Birthday Agri-Production and Community Organization” Anniversary staff and positive relationships between employees and a lecture entitled, “Rural Development under the His Majesty the organization, in accordance with staff interests and the King’s Initiatives”. Organized by KASIKORNBANKGROUP, the current situation. Highly-experienced physicians have with cooperation of the Chaipattana Foundation and Ministry been invited to give tips on “Mental Care, Post-Flooding, of Agriculture of the People’s Republic of China, this seminar Resilience Despite Loss” and other subjects of interest to was aimed at sharing knowledge on agricultural management our staff. These programs are broadcast to branches and development for rural areas of Thailand and China nationwide via KASIKORNTV. in the dimensions of the management of community, enterprise and finance. Knowledge and experiences from Social Activities the seminar should be useful for participants to upgrade KASIKORNBANKGROUP has continued to organize their operations in a more sustainable way, thus benefiting various activities for social contribution as per our commitment the overall economies and societies of the two countries to take part in social development by giving assistance and strengthening their relationships. KASIKORNBANKGROUP and supporting post-crisis recovery for alleviating hardship has been the sponsor and organizer of the seminar for and loss to people. Our notable efforts included: eight consecutive years. The event has attracted around 500 Chinese and Thai participants each year. The 8th Sino-Thai Forum Project, “Empowering Rural Development: Micro-Finance, Agri-Production Projects in Honor of His Majesty the King and Community Organization” On the occasion of His Majesty the King’s 84th Birthday Her Royal Highness Princess Maha Chakri Sirindhorn Anniversary, December 5, 2011, KASIKORNBANKGROUP presided over the 8th Sino-Thai Forum project entitled, invited Thais to pledge loyalty to His Majesty the King and “Empowering Rural Development: Micro-Finance, respond to His Majesty’s call for unity among Thais. Two main Agri-Production and Community Organization” and gave activities were organized during 2011: Annual Report 2011 Corporate Social Responsibility (CSR) Activities 275

Her Royal Highness Princess Maha Chakri Sirindhorn presided over the award The final round of the 2011 King’s Cup KBank Dragon Boat Championship, held on ceremony of the painting contest held in honor of His Majesty the King, the Chao Phraya River, in front of KASIKORNBANK Rat Burana Main Branch with the grand prize of a ‘Golden Paintbrush.’

Painting Contest in Honor of His Majesty the King highly values and promotes the spirit of unity. This sport also KASIKORNBANKGROUP and the Bangkok Art represents people’s loyalty to His Majesty the King and and Culture Center jointly organized a painting contest alignment with His Majesty’s call for unity among the Thais. in honor of His Majesty the King’s 84th Birthday Anniversary. Tournaments were arranged in all regions across Based on the concept of “Happiness of the People under the country, and the winning team of each region was invited the Reign of His Majesty the King”, the grand prize winner to join the final-round competition held on the Chao Phraya of this art competition was awarded a ‘golden paintbrush.’ River, in front of the KASIKORNBANK Rat Burana Main The contest aimed at publicizing valuable artistic works Branch, on February 2012. that promote Thai people’s realization and appreciation of the graciousness of His Majesty the King, and the unity Assistance during Disasters expressed through living together in peace and harmony During 2011, KASIKORNBANKGROUP assistance mea- under His Majesty’s reign with righteousness. Among sures for alleviating hardship among disaster-hit people were 260 artists, with 292 artistic works in total, there were as follows: 94 award-winning paintings that were selected for display Campaign of Donation to Flood Victims in Southern at the exhibition. Thailand The King’s Cup KBank Dragon Boat Championship To help flood-affected people in southern Thailand, KASIKORNBANKGROUP, in cooperation with donations were transferred to the account of the Princess the Rowing and Canoeing Association of Thailand (RCAT) Pa Foundation, Thai Red Cross Society. Also, K-Credit and the Royal Thai Navy, hosted the 2011 King’s Cup KBank Cardholders can use their reward points for donations. Dragon Boat Championship in honor of His Majesty the King’s Every 1,000 KBank Reward Points earned with K-Credit 84th Birthday Anniversary. With a history going back more than Card spending can be converted to a 100 Baht donation. 2,000 years, dragon boat racing is a traditional Thai sport that In addition, 10,000 packs of K Excellence drinking water and Annual Report 2011 276 Corporate Social Responsibility (CSR) Activities

5,000 bags of rice were donated to flood victims via offices K-Credit Cardholders in Japan can have a cash of the Bank. advance immediately at any Visa or MasterCard ATM there. In cooperation with the Thai PBS television channel, In case of a lost PIN code, cardholders can request a new KBank helped renovate flood-affected schools in southern PIN code, which will be provided within one day. Thailand. “Helping Each Other in the Thai Spirit”: A Helping Hand At the evacuation center of Kantharalak district, from KGroup through the Flood Crisis Kantharalak, Si Sa Ket, bottles of K Excellence drinking water Amid massive flooding in mid - to late 2011 inundating were given to victims of the Thailand-Cambodia border vast areas from the Central Region to Bangkok, and clashes. severely impacting a large number of people, KGroup Assistance to Disaster Victims Abroad staff joined hands to relieve hardship of flood victims, Aside from providing assistance measures for victims such as donating relief packages and K Excellence drinking at home, KBank joined hands with Old Japan Students’ water, providing free transportation and launching various Association, Thailand (OJSAT), to help tsunami victims assistance measures for our customers and the general in Japan in March 2011 by opening an account for public. In addition, a flood relief center was established, donations to the ‘Tohoku Tsunami Fund.’ To provide with efforts to help rehabilitate damaged communities, convenience and help our affected customers there, temples and schools. Post-flood handbooks providing a measure to help K-Credit Cardholders in Japan was useful knowledge were also disseminated. In detail: launched, with the offer of an additional credit line for Establishment of Relief Center supporting their emergency spending. In case of insufficient Under the royal initiative and approval of HRH Princess credit line, the cardholders can later ask for a temporary Maha Chakri Sirindhorn, the Kasikornthai Foundation arranged increase of credit limit, with other services provided, for the establishment and operation of the Chaipattana such as personal assistance for hotel reservations and flight Foundation Aid and Restoration Center for Flood Victims schedule checking. at Wat Yansangwararam Varamahavihara, Bang Lamung,

KBank joined hands with the Old Japan Students’ Association, Thailand (OJSAT), The Chaipattana Foundation Aid and Restoration Center for Flood Victims at to help tsunami victims in Japan. Wat Yansangwararam, Chon Buri. Annual Report 2011 Corporate Social Responsibility (CSR) Activities 277

Chon Buri. Officers were assigned to provide 24-hour Free Transportation assistance and coordination at this center, which could KASIKORNBANKGROUP provided free transportation accommodate 600 flood victims. Food and drinking water for the convenience of the general public in flood-hit areas were supplied, as well as occupational training and other from 8 a.m. to 6 p.m., every day, in four routes including recreational activities. In addition, an account was opened for Phahon Yothin Road, Phet Kasem Road, Vibhavadi Rangsit donations for the center’s operations. Road and Rangsit - Nakhon Nayok Road. Relief Packages ‘Helping Each Other in the Thai Spirit’ Free copies of “Post-flood Home Renovation” handbook KGroup employees with the volunteer spirit joined hands KASIKORNBANKGROUP offered 400,000 copies of our in preparing more than 7,000 relief packages ‘Helping Each “Post-Flood Home Renovation” handbook free to flood Other in the Thai Spirit’, containing dry food and other victims. The handbook provides 21 rules of post-flooding necessities. Apart from these relief packages, more than home renovation for homeowners to cope with related 1,000,000 bottles of drinking water and vital items such as problems systematically and safely. Interested persons paper toilets and adult diapers were given to flood victims were able to get this free handbook at the reopened KBank in the severely affected areas of Sing Buri, Lop Buri, branches in flood-hit areas. Phra Nakhon Si Ayutthaya, etc. and Bangkok, via branch officers and volunteer teams. KGroup also joined hands Post-flood Recovery Activities with KGroup with government agencies, such as the Royal Thai Army Big Cleaning Day and Navy, the Revenue Department and Nonthaburi City Hall, KGroup invited all employees to join hands with and charitable organizations such as the Chaipattana volunteers and local people to clean up and rehabilitate Foundation, to give assistance to flood-affected people for severely flood-affected areas, such as the shine of Chao ensuring that these packages were delivered to the widest Phor and Chao Mae Pak Nam Pho; the area in front of possible areas. the KASIKORNBANK Thanon Sai Asia Nakhon Sawan branch;

KBank gave relief packages ‘Helping Each Other in the Thai Spirit’ to flood-affected KASIKORNBANKGROUP gave free copies of the “Post-flood Home Renovation” people. handbook to flood-affected people. Annual Report 2011 278 Corporate Social Responsibility (CSR) Activities

the area of the market and Wong Wien Kaset Park, K-Home Loan, the Bank reduced the monthly installment Phra Nakhon Si Ayutthaya; Wat Siri Kumalaward, Bangkok; amount and extended additional credit limit for home repairs and Wat Thasung, Uthai Thani. We joined hands with up to the amount of paid installment payments. The Mall Department Store, students of the Faculty of For K-Credit Card holders and users of K-Express Cash Nursing, Siam University and the community near Ban Bang who were unable to meet the specified debt repayment date, Khae market to clean up the area of the Ban Bang Khae they also received a waiver of late payment penalties, Social Welfare Development Center for Older Persons; and a reduced monthly installment amount. The monthly and student volunteers from King Mongkut’s University payment amount of KLeasing customers was also reduced, of Technology Thonburi and Thammasat University, and the installment payment period was extended. as well as staff of TV Burapha Co., Ltd. (the ‘Kon Kon Kon’ TV program) to rehabilitate the buildings of Khok Khem “Green at Heart” Project School and Temple, Amphoe Supphaya, Chai Nat. To commemorate KASIKORNBANK 66th anniversary KBank arranged “KBank Big Cleaning by K Home on June 8, 2011, KASIKORNBANKGROUP organized Smiles Club,” with a cleaning team consisting of over the “Green at Heart” project, including the campaign entitled, 300 executives and staff members volunteering to help “1 Person, 1 Idea worth 8 Baht for Green Society”, which others clean up flood-hit areas. In addition, we gave encouraged employees to share ideas and propose water cleaning kits to K-Home Loan customers and more than resource preservation guidelines. The Bank contributed 8 Baht 200 housing projects. for each idea submitted. All proceeds of the project were used Financial Measures to Aid Customers Hit by the Floods for the implementation of wastewater treatment project at Based on our assessment of customers’ damages Bang Namphueng Floating Market, a community by the caused by the severe flooding situation, additional aid Chao Phraya River, Phra Pradaeng District, Samut Prakan. measures were launched. For retail customers who use The volunteer-spirit employees learned about the production

KBank joined hands with volunteers and local people to clean up and rehabilitate KGroup employees participated in “1 Person, 1 Idea Worth 8 Baht for Wat Siri Kumalaward, Bangkok. a Green Society” for the implementation of a wastewater treatment project at Bang Namphueng Floating Market, Samut Prakan. Annual Report 2011 Corporate Social Responsibility (CSR) Activities 279

of the Effective Microorganisms (EM) solution and distributed • Creating Artificial Salt Licks and Building Dike at it to shoppers at the floating market, as well as paddling Kui Buri National Park, Prachuap Khiri Khan a boat together with representatives from other agencies to KGroup staff jointly created artificial salt licks for pour the EM solution in the Chao Phraya River. elephants and other wildlife, as well as building dikes, at Kui Buri National Park. They also donated equipment Other Volunteer-Spirit Activities and foodstuffs to officers of Kui Buri National Park • Coral Planting and Marine Animal Releasing Activity to be used in their forest preservation patrols. at Samae San Beach, Sattahip, Chon Buri KGroup staff participated in coral planting and releasing Support of Volunteer Camps for Rural Development rare marine animals back to the sea at Samae San Realizing the significance of skill and knowledge Beach, Sattahip District, Chon Buri. They also attended development among students, who are the future workforce a lecture on seabed preservation and background of the nation, KGroup supported them in spending their of artificial coral reef construction, delivered by free time during the university holidays in doing useful the Director of the Marine Science and Conservation activities, which also helped them to bring their knowledge Center. into practice and disseminate it to benefit communities • Coral Planting at Talu Island, Bang Saphan, and society, especially through the self-practice from their Prachuap Khiri Khan field-trip. KGroup has consistently supported students in their Apart from attending a lecture on seabed preservation volunteer camp projects and any other activities that yield delivered by the staff of the Marine Science and public benefits, so that they can use their knowledge in Conservation Center, KGroup staff also took part a concrete manner through rural community development. in coral planting in the area around Talu Island, In 2011, KGroup supported 57 volunteer camps of both private Bang Saphan District, Prachuap Khiri Khan. and public universities, including the Livestock Camp to

KGroup staff participated in coral planting and releasing rare marine animals back to Activities to create artificial salt licks as well as building dikes, at Kui Buri National the sea at Samae San Beach, Chon Buri. Park, Prachuap Khiri Khan Annual Report 2011 280 Corporate Social Responsibility (CSR) Activities

Honor His Majesty the King, of the Student Club, Faculty of Support of Environmental and Social Activities Veterinary Technology, Kasetsart University; the Pharmacy KGroup has persistently supported to the Kasikornthai Camp to instill health reinforcement ideas to villagers in Buri Foundation’s activities to promote education and health of Ram by the students of Faculty of Pharmacy, Huachiew underprivileged children, such as library projects and lunch Chalermprakiet University; the volunteer camp project for projects. In addition, assistance has been provided to public rural development to provide legal knowledge to people and private agencies working on social development, by students in the Faculty of Law, Thammasat University; as well as educational institutions , as per the following: the sport camp for youth development by students of Support on Educational, Art and Cultural Aspects the Faculty of Sports Science, Chulalongkorn University, • The Supreme Artist Project of the Rama IX Art the elephant and forest preservation camp by the Save Thai Museum Foundation to honor His Majesty the King Elephant Club of Kasetsart University, etc. for his great artistic talents and contributions. A book and DVD of His Majesty’s painting portfolio KGroup Kathin Robe Presentation were prepared, as well as an exhibition held at KGroup organized the Royal Kathin Robe Presentation the Bangkok Art and Culture Center. Ceremony in 2011 at Wat Kanchanapisek Anusorn, • The International Conference on General Education commonly known as Leng-Noei-Yi Two Temple. Participating 2012, entitled “Roles and Experiences in Cultivating in the ceremony were KGroup executives and employees, Global Citizens”, organized by the Thai General and the general public, who jointly made donations to Education Network, Chulalongkorn University, the temple and charitable organizations. and the Office of the Higher Education Commission (OHEC)

KGroup joined hands with our customers and the general public to organize the KBank supported the “Conservation of Koh Sichang” Youth Camp, Chon Buri Royal Kathin Robe Presentation Ceremony in 2011 at Wat Kanchanapisek Anusorn, arranged by the Siam Katanyu Foundation. Nonthaburi. Annual Report 2011 Corporate Social Responsibility (CSR) Activities 281

• Bangkok’s International Festival of Dance & Music • The International Symposium on Business and in celebration of His Majesty the King’s 7th cycle, Industrial Statistics (ISBIS 2012) of the Faculty of or 84th Birthday Anniversary Commerce and Accountancy, Chulalongkorn University • The International Conference by the Faculty of Support on Social and Environmental Aspects Motion Pictures and Still Photography, Faculty of • Donation to buy medical equipment for Communication Arts, Chulalongkorn University Phaholpolpayuhasaena Hospital, Kanchanaburi • The 5th training course on “The Path to Become a Writer”, • Anti-corruption campaign projects arranged for youth in budget-deficient educational • The Marine Animal Preservation and Breeding Project institutions, under the Office of the Coordination to honor His Majesty the King, at Laem Ngop, Trat Committee for Cultural Promotion in Youth • The 12th university-level speech contest to honor Plan for CSR Activities in the Future His Majesty the King, organized by the Alumni KASIKORNBANKGROUP remains determined to be Association of Chulalongkorn University an organization that operates under the Statement of • A seminar entitled “Investment for the Future” Corporate Governance Principles along with ultimate social to acquire scholarships and subsidies for Thai students responsibility, through the combination of CSR policies who have been accepted to further their study at in the work process and business undertaking procedure of Cambridge University, the United Kingdom, all departments as per international standards. All groups of the Cambridge Thai Foundation, under the of stakeholders have been taken into consideration based on patronage of Her Majesty the Queen common benefits so that Thai society can step forward • The Sermon of the Last Great Incarnation Story of with stability and sustainability. the Buddha 2011 Project of the Buddhist Association of Thailand

KGroup supported “Sai Jai Thai Day” event. Anti-corruption campaign project at Lumpini Park STRUCTURE

284 Organization Chart 286 Board of Directors 288 Board of Directors and Executives 300 Directorship of Directors and Executives in Subsidiaries, Associated, and Related Companies 302 Changes in KASIKORNBANK Shares Held by Directors and Executives in 2011 303 Management Team 308 Investments of KASIKORNBANK in Other Companies

Annual Report 2011 284 Structure

ORGANIZATION CHART

Auditor

Corporate Secretary

1. Corporate 2. Corporate Strategy Secretariat Division Management Division

1. Office of Corporate Secretary (OS.) 1. Corporate Strategy Dept. (CS.) 2. Corporate Communications 2. K-Transformation Program and Relations Dept. (CN.)

5. Corporate 4. Corporate and SME Products 6. SME Business 7. Retail Business 8. Capital Markets Business Division Division Division Division Business Division 1. Corporate Segment 1. Corporate Portfolio Management 1. Medium SME Segment 1. Retail Portfolio Management (No Department) Management Dept. (SC.) Dept. (CM.) Management Dept. (MD.) Dept. (RP.) 2. Multi-Corporate 2. Corporate Credit Product 2. Small SME and Micro Segment 2. Consumer Segment Management Business Dept. (MB.) Management Dept. (CR.) Management Dept. (MC.) Dept. (SM.) 3. Large Corporate Business 3. Securities Services Dept. (SS.) 3. Business Marketing 3. Database Marketing and Campaign Dept. (CB.) 4. Global Business Development Management Dept. (MM.) Management Dept. (DM.) Dept. (GD.) 4. SME Customer Relationship 4. Retail Deposit and Investment Products 5. Corporate Channel Management Management Dept. (SR.) Management Dept. (DI.) Dept. (CC.) 5. SME Business Network 1 (ME.) 5. Credit Card Product Management and Marketing Dept. (CD.) 6. Cash Management Dept. (CH.) 6. SME Business Network 2 (SE.) 6. Unsecured Credit Product Operation Dept. (PO.) 7. International Trade Product 7. Customer Relations Dept. (CU.) and Business Process 8. Private Banking Dept. (PB.) Development Dept. (PP.) 9. Consumer Sales Management Dept. (SD.) 8. Corporate Business Sales 10. Retail Business Development Dept. (BD.) and Services Dept. (SA.) 11. Housing Loan Product Management and Marketing Dept. (CL.) 9. International Trade and Factoring 12. Personal Loan Product Management and Marketing Dept. (PL.) Processing Dept. (TF.) 13. Retail Payment and Foreign Exchange Products Management Dept. (PF.) 14. Consumer Bancassurance Business Management Dept. (BA.) 15. Retail and SME E-Business Dept. (RE.) 16. Service and Sales Network (BN.) 17. Integrated Marketing Communication Dept. (IC.) 18. Business Channel Management Dept. (BC.) 19. Sales and Service Network Development and Support Dept. (DS.) 20. Consumer Financial Advisory Dept. (CF.) 21. Affluent Wealth Management Dept. (AF.) 22. Electronic Channel and Sales and Service Network Operation Support Dept. (EC.)

Annual Report 2011 Structure 285

Advisers to the Board of Directors / Legal Adviser Shareholders Corporate Governance Committee

Human Resources Board of Directors and Remuneration Committee

Audit Committee Advisory Directors to the Management Committee Risk Management Committee

Management Committee 3. Compliance and Audit Division

1. Compliance Dept. (CO.) 2. Internal Audit Dept. (IA.) 3. Risk Asset Review Dept. (RR.)

9. China Business 10. Enterprise Risk 11. Finance 13. Human Resource Division Management Division and Control Division 12. Systems Division Division

1. China Business and Overseas 1. Integrated Risk Management 1. Central Treasury Dept. (TS.) 1. Process Development Dept. 1. Human Resource Management Office Management Dept. and Analytics Dept. (IM.) 2. Financial Planning Dept. (PD.) Dept. (HM.) (OM.) 2. Credit Policy and Risk (FP.) 2. Information Management Dept. 2. Employee Relations Dept. (ER.) Management Dept. (CP.) 3. Financial Accounting (ID.) 3. Human Resource Development 3. Credit Underwriting Dept. (UW.) Management Dept. (FA.) 3. Information Technology Dept. (HD.) 4. Legal Dept. (LG.) Management Dept. (IT.) 5. Asset Quality Management 4. Information Technology Planning Dept. (AQ.) Dept. (IP.) 6. Asset Quality Management 5. Treasury and Capital Markets Network (AN.) Operation Dept. (TO.) 7. Retail and SME Business 6. Credit Processing Dept. (CT.) Collection and Recovery 7. SME Credit and Housing Loan Dept. (CV.) Approval Processing Dept. (SO.) 8. Cash and Payment Processing Dept. (CA.) 9. Ground Building and Facilities Management Dept. (FM.) 10. Procurement Management Dept. (PC.) 11. IT Services Sourcing Management and Governance Dept. (SG.) 12. IT Infrastructure Management Dept. (IF.) 13. IT Quality Assurance and Risk Management Dept. (IQ.) 14. IT User Service Dept. (US.)

Effective Date: February 1, 2012 Annual Report 2011 286 Structure

BOARD OF DIRECTORS

Mr. Banyong Lamsam Chairman

Police General Pow Sarasin Vice Chairman Annual Report 2011 Structure 287

3 4 5

6 7 8

9 10 11

Directors 3. Mr. Banthoon Lamsam 4. Mr. Sukri Kaocharern 5. Mr. Somchai Bulsook 6. Ms. Sujitpan Lamsam 7. Professor Khunying Suchada Kiranandana 12 13 8. Professor Dr. Yongyuth Yuthavong 9. Dr. Abhijai Chandrasen Legal Adviser Assistant Secretary to the Board 10. Ms. Elizabeth Sam Dr. Abhijai Chandrasen of Directors 11. Professor Dr. Pairash Thajchayapong Dr. Adit Laixuthai 12. Mr. Hiroshi Ota Corporate Secretary Ms. Arasa Ampornpong 13. Ms. Kobkarn Wattanavrangkul Ms. Tida Samalapa Ms. Prayoonsri Katanyutanon Annual Report 2011 288 Structure

BOARD OF DIRECTORS AND EXECUTIVES

1. Mr. Banyong Lamsam 2000 - Present Advisory Director to the Management Committee, Chairman of the Board of Directors KASIKORNBANK PUBLIC COMPANY LIMITED Advisory Director to the Management Committee 2002 - Present Chairman of the Corporate Governance Committee, (Authorized Signature) KASIKORNBANK PUBLIC COMPANY LIMITED Age 78 2002 - 2008 Director, Quality Houses Public Company Limited Education 2002 - 2007 Director, • Bachelor’s Degree (Business Administration - Banking Siam Food Products Public Company Limited and Finance), University of New Mexico, U.S.A. 1994 - 2010 Honorary Chairman, Independent Director, • Honorary Doctorate Degree in Economics, Chairman of the Audit Committee, Ramkhamhaeng University and Chairman of the Remuneration • Honorary Doctorate Degree in Economics, and Nominating Committee, Chiangmai University Charoen Pokphand Foods Public Company Limited Training Program Directorship in Other Companies • Advanced Management Program, Harvard Business School, U.S.A. 2010 - Present Vice Chairman, Independent Director, • Banking Program, Institute of Bankers, London, U.K. Chairman of the Audit Committee, • Director Accreditation Program (DAP), and Chairman of the Remuneration Thai Institute of Directors Association and Nominating Committee, Experience Over Past 5 Years Charoen Pokphand Foods Public Company Limited 1992 - Present Chairman of the Board of Directors, 2008 - Present Chairman, Quality Houses Public Company Limited KASIKORNBANK PUBLIC COMPANY LIMITED 1993 - Present Chairman, Mitsubishi Elevator Asia Company Limited 2000 - Present Advisory Director to the Management Committee, Family Relationship None KASIKORNBANK PUBLIC COMPANY LIMITED 1992 - 2008 Director, Com-Link Company Limited 3. Mr. Banthoon Lamsam Directorship in Other Companies Director 1991 - Present Chairman, Dole Thailand Limited Chief Executive Officer and President Family Relationship Member of the Risk Management Committee • Cousin of Ms. Sujitpan Lamsam (Authorized Signature) • Uncle of Mr. Banthoon Lamsam and Mr. Krisada Lamsam Age 59 Education 2. Police General Pow Sarasin • Master’s Degree (Business Administration), Vice Chairman Harvard University, U.S.A. Advisory Director to the Management Committee • Bachelor’s Degree (Chemical Engineering), Chairman of the Corporate Governance Committee Princeton University, U.S.A. (Authorized Signature) • Honorary Doctorate Degree in Business Administration, Age 82 Prince of Songkla University Education • Honorary Doctorate Degree in Business Administration, • Bachelor’s Degree (Chemistry), Johns Hopkins University, U.S.A. Kasetsart University • Bachelor’s Degree (Criminology), University of California, U.S.A. • Honorary Doctorate Degree in Business Administration, • Honorary Doctorate Degree in Political Science, University of the Thai Chamber of Commerce Ramkhamhaeng University • Honorary Doctorate Degree in Business Administration Training Program (Management), Sripatum University • Director Accreditation Program (DAP), • Honorary Doctorate Degree in Business Administration Thai Institute of Directors Association (Banking and Finance), Chulalongkorn University Experience Over Past 5 Years • Honorary Doctorate Degree in Business Administration, 1992 - Present Vice Chairman, Thammasat University KASIKORNBANK PUBLIC COMPANY LIMITED • Honorary Doctorate Degree in Business Administration (Financial Management), Mahasarakham University Annual Report 2011 Structure 289

Training Program Experience Over Past 5 Years • Director Certification Program (DCP), 1981 - Present Director, Thai Institute of Directors Association KASIKORNBANK PUBLIC COMPANY LIMITED Experience Over Past 5 Years 2000 - Present Advisory Director to the Management Committee, 2010 - Present Chief Executive Officer and President, KASIKORNBANK PUBLIC COMPANY LIMITED KASIKORNBANK PUBLIC COMPANY LIMITED 2010 - Present Chairman of the Risk Management Committee, 2010 - Present Member of the Risk Management Committee, KASIKORNBANK PUBLIC COMPANY LIMITED KASIKORNBANK PUBLIC COMPANY LIMITED 2002 - Present Member of the Corporate Governance Committee, 2004 - 2010 Chief Executive Officer, KASIKORNBANK PUBLIC COMPANY LIMITED KASIKORNBANK PUBLIC COMPANY LIMITED 2004 - 2010 Chairman, 2003 - 2010 Chairman of the Risk Management Committee, Indorama Polymers Public Company Limited KASIKORNBANK PUBLIC COMPANY LIMITED 2003 - 2007 Commission Member Qualified 1999 - 2007 Chairman, and Experienced in Commerce, KASIKORN RESEARCH CENTER Agricultural Futures Trading Commission COMPANY LIMITED 2000 - 2006 Committee Member, Directorship in Other Companies Performance Agreement Committee, 2010 - Present Vice Chairman, State Enterprise Policy Office Muangthai Group Holding Company Limited Directorship in Other Companies 2009 - Present Director, 2007 - Present Vice Chairman and Chairman of the Audit PUKHA HOLDINGS COMPANY LIMITED Committee, Jutha Maritime Public Company Limited 2009 - Present Director, PUKHA REALTY COMPANY LIMITED 2002 - Present Director, Petform (Thailand) Company Limited 2009 - Present Director, PUKHA GO COMPANY LIMITED 2002 - Present Director, Yip In Tsoi & Jacks Company Limited 2009 - Present Director, 1979 - Present Chairman, PUKHA NANFA HOTEL COMPANY LIMITED Thai Castor Oil Industries Company Limited 1997 - Present Director, Santikaset Company Limited Family Relationship None Family Relationship • Nephew of Mr. Banyong Lamsam and Ms. Sujitpan Lamsam 5. Mr. Somchai Bulsook • Cousin of Mr. Krisada Lamsam Independent Director Chairman of the Human Resources and Remuneration Committee 4. Mr. Sukri Kaocharern Member of the Audit Committee Director Age 69 Advisory Director to the Management Committee Education Chairman of the Risk Management Committee • Bachelor’s Degree (Business Administration), Member of the Corporate Governance Committee Menlo School of Business, U.S.A. (Authorized Signature) Training Program Age 75 • Director Certification Program (DCP), Education Thai Institute of Directors Association • Master’s Degree (Accounting), Southern Illinois University, U.S.A. Experience Over Past 5 Years • Bachelor’s Degree (Accounting), Thammasat University 1993 - Present Director, • Honorary Doctorate Degree in Accounting, Thammasat University KASIKORNBANK PUBLIC COMPANY LIMITED Training Program Jan. 2011 - Present Chairman of the Human Resources • Director Certification Program (DCP), and Remuneration Committee, Thai Institute of Directors Association KASIKORNBANK PUBLIC COMPANY LIMITED • Director Accreditation Program (DAP), 1998 - Present Member of the Audit Committee, Thai Institute of Directors Association KASIKORNBANK PUBLIC COMPANY LIMITED • Audit Committee Program, Thai Institute of Directors Association • Certificate in Senior Executive Program, Capital Market Academy Annual Report 2011 290 Structure

2009 - Jan. 2011 Member of the Human Resources Directorship in Other Companies and Remuneration Committee, 2009 - Present Director, KASIKORNBANK PUBLIC COMPANY LIMITED Muangthai Group Holding Company Limited 1996 - Oct. 2011 President and Chief Executive Officer, 2009 - Present Director, Serm Suk Public Company Limited MUANGTHAI HOLDING COMPANY LIMITED 1992 - Mar. 2011 Director, Bangkok Glass Industry Company Limited 2008 - Present Director and Chairman of the Executive Committee, Directorship in Other Companies Muang Thai Insurance Public Company Limited Oct. 2011 - Present Chairman of Executive Committee 2008 - Present Director and Chairman of the Executive Committee, and Chief Executive Officer, Muang Thai Life Assurance Company Limited Serm Suk Public Company Limited Family Relationship 2009 - Present Independent Director, Royal Orchid Hotel • Cousin of Mr. Banyong Lamsam (Thailand) Public Company Limited • Aunt of Mr. Banthoon Lamsam and Mr. Krisada Lamsam 2006 - Present Chairman, Serm Suk Holdings Company Limited 2003 - Present Director, Sheraton Royal Orchid Company Limited 7. Professor Khunying Suchada Kiranandana 2003 - Present Director, Independent Director Thai Royal Orchid Real Estate Company Limited Chairman of the Audit Committee 2002 - Present Chairman, Petform (Thailand) Company Limited Age 66 1997 - Present Chairman, Serm Suk Beverage Company Limited Education 1995 - Present Director, Ngow Hock Company Limited • Ph.D. (Statistics), Harvard University, U.S.A. 1995 - Present Director, Ngow Hock Agency Company Limited • Master’s Degree (Statistics), Harvard University, U.S.A. 1995 - Present Director, Panjamitr Holding Company Limited • Bachelor’s Degree (First Class Honors) (Commerce), Family Relationship None Chulalongkorn University • Honorary Doctorate Degree in Business Administration, 6. Ms. Sujitpan Lamsam Chulalongkorn University Director Training Program Member of the Risk Management Committee • Director Certification Program (DCP), (Authorized Signature) Thai Institute of Directors Association Age 53 Experience Over Past 5 Years Education 2000 - Present Director, • Master’s Degree (Honors) (Economics), Cambridge University, U.K. KASIKORNBANK PUBLIC COMPANY LIMITED • Master’s Degree (Management), Sep. 2011 - Present Chairman of the Audit Committee, Massachusetts Institute of Technology, U.S.A. KASIKORNBANK PUBLIC COMPANY LIMITED • Bachelor’s Degree (Honors) (Economics), 2008 - Dec. 2011 Member of the Audit Committee, Cambridge University, U.K. Serm Suk Public Company Limited Training Program 2006 - 2008 Member of the National Legislative Assembly • Director Accreditation Program (DAP), 2004 - 2008 President, Chulalongkorn University Thai Institute of Directors Association 2000 - Sep. 2011 Member of the Audit Committee, Experience Over Past 5 Years KASIKORNBANK PUBLIC COMPANY LIMITED 1999 - Present Director, 1997 - 2011 President, Thai Statistical Association KASIKORNBANK PUBLIC COMPANY LIMITED Directorship in Other Companies 2004 - Present Member of the Risk Management Committee, Dec. 2011 - Present Chairman of the Audit Committee, KASIKORNBANK PUBLIC COMPANY LIMITED Serm Suk Public Company Limited 2004 - 2008 Director, Phatra Insurance Public Company Limited 2008 - Present Director, Serm Suk Public Company Limited 2000 - 2009 Chairman, Family Relationship None Phethai Asset Management Company Limited 2000 - 2008 Director, Muang Thai Life Assurance Company Limited Annual Report 2011 Structure 291

8. Professor Dr. Yongyuth Yuthavong Education Independent Director • Docteur en Droit (Honors), Paris University (Sorbonne), France Member of the Corporate Governance Committee • Barrister-at-Law, Thailand Member of the Audit Committee • Bachelor’s Degree (Honors) (Law), Chulalongkorn University Age 67 Training Program Education • Director Accreditation Program (DAP), • D.Phil. (Organic Chemistry), University of Oxford, U.K. Thai Institute of Directors Association • Bachelor’s Degree (First Class Honors) (Chemistry), • Finance for Non-Finance Director, University of London, U.K. Thai Institute of Directors Association • Honorary Doctorate Degree in Science (Biochemistry), • Role of Compensation Committee, Prince of Songkla University Thai Institute of Directors Association • Honorary Doctorate Degree in Science (Biochemistry), • Audit Committee Program, Thai Institute of Directors Association Mahidol University • Developing Corporate Governance Policy, • Honorary Doctorate Degree in Science (Chemistry), Thai Institute of Directors Association Suranaree University of Technology Experience Over Past 5 Years • Honorary Doctorate Degree in Science (Biochemistry), 2000 - Present Director and Legal Adviser, Thammasat University KASIKORNBANK PUBLIC COMPANY LIMITED Training Program 2000 - Present Advisory Director to the Management Committee, • Director Accreditation Program (DAP), KASIKORNBANK PUBLIC COMPANY LIMITED Thai Institute of Directors Association Jan. 2011 - Present Member of the Human Resources • Financial Institutions Governance Program, and Remuneration Committee Thai Institute of Directors Association KASIKORNBANK PUBLIC COMPANY LIMITED Experience Over Past 5 Years 2006 - Present Eminent Director, 2008 - Present Director, The National Commission on the Elderly, KASIKORNBANK PUBLIC COMPANY LIMITED Office of the Prime Minister 2008 - Present Member of the Corporate Governance Committee, 1994 - Present Legal Adviser, The Chaipattana Foundation KASIKORNBANK PUBLIC COMPANY LIMITED 2000 - 2008 Chairman, Punyariddhi Law Office Company Limited Sep. 2011 - Present Member of the Audit Committee Directorship in Other Companies KASIKORNBANK PUBLIC COMPANY LIMITED 2005 - Present Director, Siam Motors Company Limited 2008 - Present Senior Researcher, National Science 2003 - Present Audit Committee Member and Chairman of and Technology Development Agency the Human Resources and Remuneration Committee, 1984 - Present Member of the Council of Trustee Sammakorn Public Company Limited and the Board of Directors, 1994 - Present Director, Sammakorn Public Company Limited Thailand Development Research Institute Family Relationship None 2006 - 2008 Minister, Ministry of Science and Technology Directorship in Other Companies None 10. Ms. Elizabeth Sam Family Relationship None Independent Director Member of the Audit Committee 9. Dr. Abhijai Chandrasen Age 73 Director and Legal Adviser Education Advisory Director to the Management Committee • Bachelor’s Degree (Honors) (Economics), Member of the Human Resources and Remuneration Committee University of Singapore, Singapore (Authorized Signature) Training Program Age 63 • Director Accreditation Program (DAP), Thai Institute of Directors Association Annual Report 2011 292 Structure

Experience Over Past 5 Years Directorship in Other Companies 2001 - Present Director, 2006 - Present Director, Kluen Panya Company Limited KASIKORNBANK PUBLIC COMPANY LIMITED 1995 - Present Chairman, Internet Thailand Public Company Limited 2001 - Present Member of the Audit Committee, Family Relationship None KASIKORNBANK PUBLIC COMPANY LIMITED Directorship in Other Companies 12. Mr. Hiroshi Ota 2008 - Present Independent Director, Independent Director Straits Trading Company Limited Member of the Corporate Governance Committee 2004 - Present Independent Director, Age 75 Banyan Tree Holdings Limited Education 2000 - Present Independent Director, Boardroom Limited • Master’s Degree (International Relations), Family Relationship None The Fletcher School of Law and Diplomacy, Tufts University, U.S.A. • Bachelor’s Degree (Liberal Arts - American Studies), 11. Professor Dr. Pairash Thajchayapong The University of Tokyo, Japan Independent Director Training Program Member of the Human Resources and Remuneration Committee • Director Accreditation Program (DAP), Age 67 Thai Institute of Directors Association Education Experience Over Past 5 Years • Ph.D. (Computer and Electronics), Cambridge University, U.K. 2009 - Present Director, • Bachelor’s Degree (First Class Honors) (Electrical and Electronics KASIKORNBANK PUBLIC COMPANY LIMITED Engineering), Imperial College of Science and Technology, 2009 - Present Member of the Corporate Governance Committee, University of London, U.K. KASIKORNBANK PUBLIC COMPANY LIMITED • Honorary Doctorate Degree in Engineering, Tokai University, Japan 2010 - Present Auditor, Riei Company Limited • Honorary Doctorate Degree in Information Technology, 2002 - Present Vice President, The Okazaki Institute, Japan King Mongkut’s Institute of Technology Ladkrabang 2007 - 2010 Advisor, Riei Company Limited Training Program 2004 - 2009 Advisor, The Federation of Electric Power • Director Certification Program (DCP), Companies of Japan Thai Institute of Directors Association 2000 - 2007 Advisor, Mitsubishi Heavy Industries Limited • Director Accreditation Program (DAP), Directorship in Other Companies None Thai Institute of Directors Association Family Relationship None Experience Over Past 5 Years 2007 - Present Director, 13. Ms. Kobkarn Wattanavrangkul KASIKORNBANK PUBLIC COMPANY LIMITED Independent Director 2008 - Present Member of the Human Resources Member of the Human Resources and Remuneration Committee and Remuneration Committee, Age 51 KASIKORNBANK PUBLIC COMPANY LIMITED Education 2005 - Present Specialist and Senior Advisor, National Science • Bachelor’s Degree (Architecture), and Technology Development Agency Rhode Island School of Design, U.S.A. 2004 - Present Chairman, National Nanotechnology Center Training Program 2000 - Present Chairman, National Electronics and Computer • Director Certification Program (DCP), Technology Center Thai Institute of Directors Association 1995 - Present Assistant Director, IT Project Under the Initiative • The Role of the Chairman Program, of H.R.H. Princess Maha Chakri Sirindhorn Thai Institute of Directors Association 1989 - Present Assistant Director for Engineering and Computer, Experience Over Past 5 Years Chulabhorn Research Institute Jan. 2011 - Present Director, KASIKORNBANK PUBLIC COMPANY LIMITED Annual Report 2011 Structure 293

Jan. 2011 - Present Member of the Human Resources 2010 - Present Member of the Risk Management Committee and Remuneration Committee, KASIKORNBANK PUBLIC COMPANY LIMITED KASIKORNBANK PUBLIC COMPANY LIMITED 2009 - 2010 Chairman, Directorship in Other Companies PROGRESS SOFTWARE COMPANY LIMITED 2010 - Present Director, Control Component Company Limited 2009 - 2010 Chairman, 2010 - Present Director, Vichaiyut Company Limited PROGRESS SERVICE COMPANY LIMITED 2008 - Present Director, B.Grimm BIP Power Limited 2008 - 2010 Chairman, 2004 - Present Chairperson, PROGRESS PLUS COMPANY LIMITED Toshiba Thailand Company Limited 2006 - 2010 Chairman, 2004 - Present Chairperson, PROGRESS FACILITIES MANAGEMENT Thai Toshiba Electric Industries Company Limited COMPANY LIMITED 2004 - Present Chairperson, 2005 - 2010 Chairman, Thai Toshiba Lighting Company Limited PROGRESS MANAGEMENT COMPANY LIMITED 2004 - Present Chairperson, 2005 - 2010 Chairman, Thai Toshiba Fluorescent Lamp Company Limited PROGRESS LAND AND BUILDINGS 2004 - Present Chairperson, COMPANY LIMITED Bangkadi Industrial Park Company Limited 2005 - 2010 Chairman, 2004 - Present Executive Director, PROGRESS STORAGE COMPANY LIMITED Mitkorn Development Company Limited 2005 - 2010 Chairman, PROGRESS H R COMPANY LIMITED 2001 - Present Director, Toshiba Lighting Components (Thailand) 2005 - 2010 Chairman, Company Limited PROGRESS APPRAISAL COMPANY LIMITED 2001 - Present Director, 2005 - 2010 Chairman, Superlite N.K.S. Holding Company Limited PROGRESS SERVICE SUPPORT 1999 - Present Director, Thai Electric Industries Company Limited COMPANY LIMITED 1991 - Present Director, Nikornkij and Sons Company Limited 2005 - 2010 Chairman, 1990 - Present Director, B.I.P.-1990 Company Limited PROGRESS COLLECTION COMPANY LIMITED 1989 - Present Director, T.T.H. Company Limited 2005 - 2010 Chairman, PROGRESS TRAINING COMPANY LIMITED 14. Mr. Somkiat Sirichatchai 2005 - 2010 Secretary to the Human Resources Senior Executive Vice President and Remuneration Committee, Resource Domain Coordinator KASIKORNBANK PUBLIC COMPANY LIMITED Member of the Risk Management Committee 2004 - 2010 Executive Vice President, Age 47 KASIKORNBANK PUBLIC COMPANY LIMITED Education Directorship in Other Companies • Master’s Degree (Business Administration), • Chairman, University of Pennsylvania (Wharton), U.S.A. KASIKORN ASSET MANAGEMENT COMPANY LIMITED Training Program • Director, Muangthai Group Holding Company Limited • Director Accreditation Program (DAP), • Director, Muang Thai Life Assurance Company Limited Thai Institute of Directors Association Family Relationship None • Role of Compensation Committee, Thai Institute of Directors Association 15. Mr. Predee Daochai Experience Over Past 5 Years Senior Executive Vice President 2010 - Present Senior Executive Vice President Risk Domain Coordinator KASIKORNBANK PUBLIC COMPANY LIMITED Member of the Risk Management Committee Age 53 Annual Report 2011 294 Structure

Education 17. Mr. Krisada Lamsam • Master’s Degree (Comparative Law), Senior Executive Vice President University of Illinois at Urbana, U.S.A. Business Domain Coordinator • Barrister-at-Law, Thailand Member of the Risk Management Committee Training Program Age 47 • Director Certification Program (DCP), Education Thai Institute of Directors Association • Master’s Degree (Education Foundation), Experience Over Past 5 Years Oregon State University, U.S.A. 2010 - Present Senior Executive Vice President, Training Program KASIKORNBANK PUBLIC COMPANY LIMITED • Director Certification Program (DCP), 2003 - Present Member of the Risk Management Committee, Thai Institute of Directors Association KASIKORNBANK PUBLIC COMPANY LIMITED Experience Over Past 5 Years 2008 - 2010 Director, 2010 - Present Senior Executive Vice President, Phethai Asset Management Company Limited KASIKORNBANK PUBLIC COMPANY LIMITED 2008 Director, 2004 - Present Member of the Risk Management Committee, KASIKORN LEASING COMPANY LIMITED KASIKORNBANK PUBLIC COMPANY LIMITED 2004 - 2010 Executive Vice President, 2009 - Aug. 2011 Executive Chairman, KASIKORNBANK PUBLIC COMPANY LIMITED KASIKORN LEASING COMPANY LIMITED Directorship in Other Companies 2006 - 2010 Executive Vice President, • Director, Muangthai Group Holding Company Limited KASIKORNBANK PUBLIC COMPANY LIMITED • Director, Muang Thai Life Assurance Company Limited Directorship in Other Companies Family Relationship None • Chairman, KASIKORN LEASING COMPANY LIMITED • Vice Chairman, Muang Thai Life Assurance Company Limited 16. Mr. Teeranun Srihong • Director, Thaveepramoth Company Limited Senior Executive Vice President • Director, Pruetthada Company Limited Infrastructure Domain Coordinator Family Relationship Member of the Risk Management Committee • Nephew of Mr. Banyong Lamsam and Ms. Sujitpan Lamsam Age 46 • Cousin of Mr. Banthoon Lamsam Education • Master’s Degree (Business Administration), 18. Mr. Pakorn Partanapat University of Michigan - Ann Arbor, U.S.A. Executive Vice President Training Program Retail Business Division Head* • Director Accreditation Program (DAP), Age 46 Thai Institute of Directors Association Education Experience Over Past 5 Years • Master’s Degree (Business Administration), 2010 - Present Senior Executive Vice President Columbia Business School, U.S.A. KASIKORNBANK PUBLIC COMPANY LIMITED Experience Over Past 5 Years 2003 - Present Member of the Risk Management Committee 2008 - Present Executive Vice President, KASIKORNBANK PUBLIC COMPANY LIMITED KASIKORNBANK PUBLIC COMPANY LIMITED 2009 - Feb. 2011 Director, Thai Digital ID Company Limited 2008 - Dec. 2011 Director, 2006 - 2010 Executive Vice President, Muang Thai Insurance Public Company Limited KASIKORNBANK PUBLIC COMPANY LIMITED 2008 - 2010 Member of the Risk Management Committee, 2006 - 2010 Director, KASIKORNBANK PUBLIC COMPANY LIMITED PROGRESS SOFTWARE COMPANY LIMITED 2006 - 2008 First Senior Vice President, 2005 - Jan. 2011 Director, Processing Center Company Limited KASIKORNBANK PUBLIC COMPANY LIMITED Directorship in Other Companies None Family Relationship None Annual Report 2011 Structure 295

Directorship in Other Companies 2010 Secretary to the Audit Committee, • Director, KASIKORNBANK PUBLIC COMPANY LIMITED KASIKORN FACTORY AND EQUIPMENT COMPANY LIMITED 2003 - 2009 First Senior Vice President, • Director, Thanyathanathavee Company Limited KASIKORNBANK PUBLIC COMPANY LIMITED • Director, Thanyanithiwattana Company Limited Directorship in Other Companies • Director, KHAO KLA Venture Capital Management Company Limited • Director, KASIKORN ASSET MANAGEMENT COMPANY LIMITED • Director, Muangthai Group Holding Company Limited • Chairman, PROGRESS SOFTWARE COMPANY LIMITED • Director, Muang Thai Life Assurance Company Limited • Chairman, PROGRESS SERVICE COMPANY LIMITED Family Relationship None • Chairman, PROGRESS PLUS COMPANY LIMITED * Effective on January 1, 2012 • Chairman, PROGRESS FACILITIES MANAGEMENT COMPANY LIMITED 19. Mr. Thiti Tantikulanan • Chairman, PROGRESS MANAGEMENT COMPANY LIMITED Capital Markets Business Division Head* • Chairman, PROGRESS LAND AND BUILDINGS COMPANY LIMITED Member of the Risk Management Committee • Chairman, PROGRESS STORAGE COMPANY LIMITED Age 42 • Chairman, PROGRESS H R COMPANY LIMITED Education • Chairman, PROGRESS APPRAISAL COMPANY LIMITED • Bachelor’s Degree (Business Administration), • Chairman, PROGRESS SERVICE SUPPORT COMPANY LIMITED University of Washington, U.S.A. • Chairman, PROGRESS COLLECTION COMPANY LIMITED Experience Over Past 5 Years • Chairman, PROGRESS TRAINING COMPANY LIMITED 2008 - Present Capital Markets Business Division Head, • Chairman, KASIKORNBANK PUBLIC COMPANY LIMITED PROGRESS MULTI INSURANCE BROKER COMPANY LIMITED 2008 - Present Member of the Risk Management Committee, Family Relationship None KASIKORNBANK PUBLIC COMPANY LIMITED 2006 - 2010 Director, Thai Bond Market Association 21. Mr. Prasopsuk Damrongchietanon 2006 - 2008 Capital Markets Business Head, Executive Vice President KASIKORNBANK PUBLIC COMPANY LIMITED Corporate Strategy Management Division Head 2003 - 2006 Head of Trading, HSBC (Thailand) Age 49 Directorship in Other Companies None Education Family Relationship None • Master’s Degree (Business Administration - Finance and Marketing), * This position is equivalent to Executive Vice President University of Rochester, U.S.A. Training Program 20. Mr. Surasak Dudsdeemaytha • Director Certification Program (DCP), Executive Vice President Thai Institute of Directors Association Human Resource Division Head Experience Over Past 5 Years Age 46 2010 - Present Executive Vice President, Education KASIKORNBANK PUBLIC COMPANY LIMITED • Master’s Degree (Business Administration), 2005 - 2008 Director, Sasin Graduate Institute of Business Administration KASIKORN LEASING COMPANY LIMITED Training Program 2005 - 2006 Director, • Director Certification Program (DCP), KASIKORN FACTORING COMPANY LIMITED Thai Institute of Directors Association 2003 - 2009 First Senior Vice President, Experience Over Past 5 Years KASIKORNBANK PUBLIC COMPANY LIMITED 2010 - Present Executive Vice President, Directorship in Other Companies KASIKORNBANK PUBLIC COMPANY LIMITED • Director, KASIKORN RESEARCH CENTER COMPANY LIMITED 2010 - Present Secretary to the Human Resources • Director, KASIKORN SECURITIES PUBLIC COMPANY LIMITED and Remuneration Committee, • Director, Thanyathanathavee Company Limited KASIKORNBANK PUBLIC COMPANY LIMITED • Director, Thanyathamrongkij Company Limited Annual Report 2011 296 Structure

• Director, Thanyanithiwattana Company Limited 24. Mr. Songpol Chevapanyaroj • Director, Muangthai Group Holding Company Limited Executive Vice President Family Relationship None Corporate and SME Products Division Head Member of the Risk Management Committee 22. Ms. Kattiya Indaravijaya Age 39 Executive Vice President Education Finance and Control Division Head and Chief Financial Officer • Master’s Degree (Business Administration - Finance), Member of the Risk Management Committee Case Western Reserve University, U.S.A. Age 46 Experience Over Past 5 Years Education 2010 - Present Executive Vice President, • Master’s Degree (Business Administration - Finance and Investment), KASIKORNBANK PUBLIC COMPANY LIMITED The University of Texas at Austin, U.S.A. 2008 - Present Member of the Risk Management Committee, Experience Over Past 5 Years KASIKORNBANK PUBLIC COMPANY LIMITED 2010 - Present Executive Vice President, 2009 - 2010 Director, KASIKORN LEASING COMPANY LIMITED KASIKORNBANK PUBLIC COMPANY LIMITED 2008 - 2009 First Senior Vice President, 2010 - Present Member of the Risk Management Committee, KASIKORNBANK PUBLIC COMPANY LIMITED KASIKORNBANK PUBLIC COMPANY LIMITED 2006 - 2007 Capital Markets Business Head, 2005 - 2009 First Senior Vice President, KASIKORNBANK PUBLIC COMPANY LIMITED KASIKORNBANK PUBLIC COMPANY LIMITED Directorship in Other Companies Directorship in Other Companies • Director, KASIKORN ASSET MANAGEMENT COMPANY LIMITED • Director, KASIKORN LEASING COMPANY LIMITED Family Relationship None Family Relationship None 25. Mr. Vasin Vanichvoranun 23. Dr. Adit Laixuthai Executive Vice President Executive Vice President Corporate Business Division Head Corporate Secretariat Division Head Age 45 Age 47 Education Education • Master’s Degree (Business Administration - Financial and Marketing), • Ph.D. (Public Health Sciences - Health Economics), Sasin Graduate Institute of Business Administration University of Illinois, U.S.A. Experience Over Past 5 Years Training Program 2010 - Present Executive Vice President, • Director Certification Program (DCP - Diploma), KASIKORNBANK PUBLIC COMPANY LIMITED Thai Institute of Directors Association 2008 - 2009 First Senior Vice President, Experience Over Past 5 Years KASIKORNBANK PUBLIC COMPANY LIMITED 2010 - Present Executive Vice President, 2006 - 2007 Senior Vice President, KASIKORNBANK PUBLIC COMPANY LIMITED Multi-Corporate Business Department, 2000 - Present Assistant Secretary to the Board of Directors, KASIKORNBANK PUBLIC COMPANY LIMITED KASIKORNBANK PUBLIC COMPANY LIMITED Directorship in Other Companies 2008 - Present Secretary to the Corporate Governance Committee, • Director, KASIKORN SECURITIES PUBLIC COMPANY LIMITED KASIKORNBANK PUBLIC COMPANY LIMITED Family Relationship None 1999 - Present Chief Investor Relations Officer, KASIKORNBANK PUBLIC COMPANY LIMITED 26. Mr. Wirawat Panthawangkun 2006 - 2009 First Senior Vice President, Executive Vice President KASIKORNBANK PUBLIC COMPANY LIMITED Enterprise Risk Management Division Head Directorship in Other Companies None Member of the Risk Management Committee Family Relationship None Age 39 Annual Report 2011 Structure 297

Education 2008 - 2010 Member and Secretary to • Master’s Degree (Business Administration - Financial Engineering), the Risk Management Committee, Sloan School of Management, KASIKORNBANK PUBLIC COMPANY LIMITED Massachusetts Institute of Technology, U.S.A. 2008 - 2010 Member of the Risk Management Committee, Training Program KASIKORNBANK PUBLIC COMPANY LIMITED • Director Certification Program (DCP), 2008 - 2009 First Senior Vice President, Thai Institute of Directors Association KASIKORNBANK PUBLIC COMPANY LIMITED Experience Over Past 5 Years 2006 - 2007 Senior Vice President, 2010 - Present Executive Vice President, Internal Risk Management Department, KASIKORNBANK PUBLIC COMPANY LIMITED KASIKORNBANK PUBLIC COMPANY LIMITED 2010 - Present Member of the Risk Management Committee, Directorship in Other Companies None KASIKORNBANK PUBLIC COMPANY LIMITED Family Relationship None 2008 - 2009 First Senior Vice President, KASIKORNBANK PUBLIC COMPANY LIMITED 28. Mr. Somkid Jiranuntarat 2006 - 2007 Senior Vice President, Executive Vice President Business Channel Management Department, Systems Division Head KASIKORNBANK PUBLIC COMPANY LIMITED Age 51 Directorship in Other Companies Education • Director, KASIKORN SECURITIES PUBLIC COMPANY LIMITED • Master’s Degree (Management), • Director, Thanyathanathavee Company Limited Sasin Graduate Institute of Business Administration • Director, Thanyathamrongkij Company Limited • Master’s Degree (Computer Science), Family Relationship None Oregon State University, U.S.A. Training Program 27. Mr. Krit Jitjang • Director Certification Program (DCP), Executive Vice President Thai Institute of Directors Association Compliance and Audit Division Head Experience Over Past 5 Years Age 40 2010 - Present Executive Vice President, Education KASIKORNBANK PUBLIC COMPANY LIMITED • Master’s Degree (Business Administration), Sloan School of 2009 - 2010 First Senior Vice President, Management, Massachusetts Institute of Technology, U.S.A. KASIKORNBANK PUBLIC COMPANY LIMITED Training Program 2002 - 2009 Executive Vice President, United Overseas • Director Certification Program (DCP), Bank (Thai) Public Company Limited Thai Institute of Directors Association Directorship in Other Companies Experience Over Past 5 Years • Director, PROGRESS SOFTWARE COMPANY LIMITED 2010 - Present Executive Vice President, Family Relationship None KASIKORNBANK PUBLIC COMPANY LIMITED 2010 - Present Secretary to the Audit Committee, 29. Mr. Pipit Aneaknithi KASIKORNBANK PUBLIC COMPANY LIMITED Executive Vice President 2010 Director, KASIKORN SECURITIES China Business Division Head PUBLIC COMPANY LIMITED Age 44 2009 - 2010 Director, Education Muangthai Group Holding Company Limited • Master’s Degree (Business Administration), 2009 - 2010 Director, University of Brighton, U.K. Muang Thai Life Assurance Company Limited • Master’s Degree (Business Administration), FH. Pforzheim, Germany Annual Report 2011 298 Structure

Experience Over Past 5 Years Experience Over Past 5 Years 2010 - Present Executive Vice President, 2010 - Present Executive Vice President, KASIKORNBANK PUBLIC COMPANY LIMITED KASIKORNBANK PUBLIC COMPANY LIMITED 2008 - 2010 Director, 2011 Director, KASIKORN LEASING COMPANY LIMITED KASIKORN RESEARCH COMPANY LIMITED 2009 - 2010 Director, National ITMX Company Limited 2008 - 2009 First Senior Vice President, 2008 - 2010 Director, KASIKORN ASSET MANAGEMENT KASIKORNBANK PUBLIC COMPANY LIMITED COMPANY LIMITED 2006 - 2010 Director, KASIKORN SECURITIES 2008 - 2010 Member of the Risk Management Committee, PUBLIC COMPANY LIMITED KASIKORNBANK PUBLIC COMPANY LIMITED 2006 - 2007 Senior Vice President, 2006 - Sep. 2011 Director, PROGRESS SERVICE SUPPORT Consumer Segment Management Department, COMPANY LIMITED KASIKORNBANK PUBLIC COMPANY LIMITED 2001 - 2009 First Senior Vice President, Directorship in Other Companies None KASIKORNBANK PUBLIC COMPANY LIMITED Family Relationship None Directorship in Other Companies • Executive Chairman, 30. Mr. Patchara Samalapa KASIKORN ASSET MANAGEMENT COMPANY LIMITED Executive Vice President* • Director, Sahakij Aluminium Company Limited SME Business Division Head Family Relationship None Age 40 Education 32. Dr. Pipatpong Poshyanonda • Master’s Degree (Business Administration), Executive Vice President Massachusetts Institute of Technology, U.S.A. Age 43 Experience Over Past 5 Years Education Jan. 2012 - Present Executive Vice President, • Ph.D. (Engineering Management), KASIKORNBANK PUBLIC COMPANY LIMITED University of Missouri-Rolla, U.S.A. 2010 - Dec. 2011 Managing Director, Experience Over Past 5 Years KASIKORN ASSET MANAGEMENT 2010 - Present Executive Vice President, COMPANY LIMITED KASIKORNBANK PUBLIC COMPANY LIMITED 2009 - 2010 Executive Vice President, 2005 - 2010 First Senior Vice President, KASIKORN ASSET MANAGEMENT KASIKORNBANK PUBLIC COMPANY LIMITED COMPANY LIMITED Directorship in Other Companies 1999 - 2009 Senior Principal, • Director, PROGRESS SOFTWARE COMPANY LIMITED Merrill Lynch & Co., Inc., Australia & Thailand • Director, Thai Digital ID Company Limited Directorship in Other Companies Family Relationship None • Director, KASIKORN ASSET MANAGEMENT COMPANY LIMITED Family Relationship None 33. Mr. Chatchai Payuhanaveechai * Effective on January 1, 2012 Executive Vice President* Age 51 31. Mr. Ampol Polohakul Education Executive Vice President • Master’s Degree (Business Administration), Chulalongkorn University Age 46 Experience Over Past 5 Years Education Jan. 2012 - Present Executive Vice President, • Master’s Degree (Business Administration), KASIKORNBANK PUBLIC COMPANY LIMITED University of Michigan - Ann Arbor, U.S.A. 2008 - Dec. 2011 First Senior Vice President, KASIKORNBANK PUBLIC COMPANY LIMITED 2002 - 2007 Senior Vice President, Consumer Loans Department, KASIKORNBANK PUBLIC COMPANY LIMITED Annual Report 2011 Structure 299

Directorship in Other Companies Directorship in Other Companies • Director, KASIKORN LEASING COMPANY LIMITED • Director, KASIKORN RESEARCH COMPANY LIMITED Family Relationship None Family Relationship None * Effective on January 1, 2012 36. Ms. Wasana Surakit 34. Mr. Chongrak Rattanapian Senior Vice President Executive Vice President* Financial Accounting Management Department Head Member of the Risk Management Committee Age 44 Age 43 Education Education • Master’s Degree (Accounting), Thammasat University • Master’s Degree (Business Administration - Finance), Experience Over Past 5 Years William Paterson University of New Jersey, U.S.A. 2008 - Present Senior Vice President, Experience Over Past 5 Years Financial Accounting Management Department, Jan. 2012 - Present Executive Vice President, KASIKORNBANK PUBLIC COMPANY LIMITED KASIKORNBANK PUBLIC COMPANY LIMITED 2008 - 2010 Director, KASIKORN FACTORY 2008 - Present Member of the Risk Management Committee, AND EQUIPMENT COMPANY LIMITED KASIKORNBANK PUBLIC COMPANY LIMITED 2004 - 2007 First Vice President, 2008 - Dec. 2011 First Senior Vice President, Financial Accounting Management Department, KASIKORNBANK PUBLIC COMPANY LIMITED KASIKORNBANK PUBLIC COMPANY LIMITED 2006 - 2008 Senior Vice President, Directorship in Other Companies None Central Treasury Department, Family Relationship None KASIKORNBANK PUBLIC COMPANY LIMITED Directorship in Other Companies None 37. Ms. Nisanat Ouvuthipong Family Relationship None First Vice President * Effective on January 1, 2012 Financial Planning Department Head Age 35 35. Ms. Sansana Sukhanunth Education First Senior Vice President • Master’s Degree (Business Administration - Finance), Age 42 University of Michigan, U.S.A. Education Experience Over Past 5 Years • Master’s Degree (Business Administration - Finance), 2008 - Present First Vice President, University of Wisconsin - Madison, U.S.A. Financial Planning Department, Experience Over Past 5 Years KASIKORNBANK PUBLIC COMPANY LIMITED 2010 - Present First Senior Vice President, 2006 - 2008 Vice President, KASIKORNBANK PUBLIC COMPANY LIMITED Financial Planning Department, 2008 - 2009 Senior Vice President, KASIKORNBANK PUBLIC COMPANY LIMITED Retail Portfolio Management Department, 2005 - 2006 Assistant Vice President, KASIKORNBANK PUBLIC COMPANY LIMITED Financial Planning Department, 2006 - 2008 First Vice President, KASIKORNBANK PUBLIC COMPANY LIMITED Retail Portfolio Management Department, Directorship in Other Companies None KASIKORNBANK PUBLIC COMPANY LIMITED Family Relationship None 2006 First Vice President, Credit Underwriting Department, KASIKORNBANK PUBLIC COMPANY LIMITED Annual Report 2011 300 Structure

DIRECTORSHIP OF DIRECTORS AND EXECUTIVES IN SUBSIDIARIES, ASSOCIATED, AND RELATED COMPANIES As of December 31, 2011

Position Name Subsidiaries Associated Related KASIKORNBANK Companies Companies 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 1 2 3 1 2 3 4 5 6 7 1 Mr. Banyong Lamsam Chairman 2 Pol. Gen. Pow Sarasin Vice Chairman 3 Mr. Banthoon Lamsam Chief Executive Officer / / and President 4 Mr. Sukri Kaocharern Director 5 Mr. Somchai Bulsook Director 6 Ms. Sujitpan Lamsam Director / // // 7 Prof. Khunying Suchada Kiranandana Director 8 Prof. Dr. Yongyuth Yuthavong Director 9 Dr. Abhijai Chandrasen Director and Legal Adviser 10 Ms. Elizabeth Sam Director 11 Prof. Dr. Pairash Thajchayapong Director 12 Mr. Hiroshi Ota Director 13 Ms. Kobkarn Wattanavrangkul Director / / / 14 Mr. Somkiat Sirichatchai Senior Executive Vice President X / / 15 Mr. Predee Daochai Senior Executive Vice President / / 16 Mr. Teeranun Srihong Senior Executive Vice President 17 Mr. Krisada Lamsam Senior Executive Vice President X / / 18 Mr. Pakorn Partanapat Executive Vice President / / / / / / / 19 Mr. Thiti Tantikulanan Capital Markets Business Division Head 20 Mr. Surasak Dudsdeemaytha Executive Vice President / X X X X X X X X X X X X X 21 Mr. Prasopsuk Damrongchietanon Executive Vice President / / / / / / 22 Ms. Kattiya Indaravijaya Executive Vice President / 23 Dr. Adit Laixuthai Executive Vice President 24 Mr. Songpol Chevapanyaroj Executive Vice President / 25 Mr. Vasin Vanichvoranun Executive Vice President / 26 Mr. Ampol Polohakul Executive Vice President / / 27 Mr. Wirawat Panthawangkun Executive Vice President / / / 28 Mr. Krit Jitjang Executive Vice President 29 Mr. Somkid Jiranuntarat Executive Vice President / 30 Mr. Pipit Aneaknithi Executive Vice President 31 Dr. Pipatpong Poshyanonda Executive Vice President / / 32 Ms. Patcharin Vongsiridej First Senior Vice President 33 Mr. Tawit Thanachanan First Senior Vice President 34 Mr. Chartchai Sundharagiati First Senior Vice President / / / / / 35 Mr. Suwat Charoenvijitchai First Senior Vice President 36 Mr. Chatchai Payuhanaveechai First Senior Vice President / 37 Mr. Pongpichet Nananukool First Senior Vice President 38 Ms. Pannee Lertchanyakul First Senior Vice President / 39 Mr. Yuthchai Chusakpakdee First Senior Vice President / / / 40 Mr. Atipat Asawachinda First Senior Vice President / / / / / / 41 Mr. Chongrak Rattanapian First Senior Vice President 42 Mr. Silawat Santivisat First Senior Vice President / Annual Report 2011 Structure 301

Position Name Subsidiaries Associated Related KASIKORNBANK Companies Companies 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 1 2 3 1 2 3 4 5 6 7 43 Mr. Suradech Kietthanakorn Investment Banking / Business Head 44 Ms. Kwannet Rattanaprug First Senior Vice President 45 Mr. Sammit Sakulwira First Senior Vice President / 46 Ms. Siranee Phoophat First Senior Vice President 47 Mr. Suwat Techawatanawana First Senior Vice President 48 Mr. Porvarate Chetphongphan First Senior Vice President / 49 Ms. Sansana Sukhanunth First Senior Vice President / 50 Mr. Thawee Teerasoontornwong First Senior Vice President / / 51 Mr. Boonchan Kulvatunyou First Senior Vice President 52 Mr. Maytee Phanachet Capital Markets Product Management Head 53 Mr. Art Wichiencharoen First Senior Vice President / / 54 Ms. Sukonrat Bhurivatana First Senior Vice President / / 55 Ms. Sarunya Leelarasamee First Senior Vice President 56 Mr. Photjanart Sangpruaksa First Senior Vice President / 57 Ms. Sopa Noonate First Senior Vice President / 58 Mr. Vallop Vongjitvuttikrai First Senior Vice President 59 Ms. Wasana Surakit Department Head, Financial Accounting Management Department 60 Ms. Nisanat Ouvuthipong Department Head, Financial Planning Department Note: 1) Subsidiaries, Associated and Related Companies shall comply with the definitions of the Office of the Securities and Exchange Commission, which shall include directorship in other companies as specified by the Bank of Thailand. 2) X = Chairman : / = Director : // = Executive Director 3) List of Subsidiaries 1 KASIKORN ASSET MANAGEMENT CO., LTD. 10 PROGRESS APPRAISAL CO., LTD. 19 PROGRESS TRAINING CO., LTD. 2 KASIKORN RESEARCH CENTER CO., LTD. 11 PROGRESS MANAGEMENT CO., LTD. 20 PROGRESS MULTI INSURANCE BROKER CO., LTD. 3 KASIKORN SECURITIES PCL 12 PROGRESS FACILITIES MANAGEMENT CO., LTD. 21 Thanyathanathavee Co., Ltd. 4 KASIKORN LEASING CO., LTD. 13 PROGRESS SERVICE CO., LTD. 22 Thanyathamrongkij Co., Ltd. 5 KASIKORN FACTORY AND EQUIPMENT CO., LTD. 14 PROGRESS LAND AND BUILDINGS CO., LTD. 23 Thanyanithiwattana Co., Ltd. 6 Phethai Asset Management Co., Ltd. 15 PROGRESS STORAGE CO., LTD. 24 KHAO KLA Venture Capital Management Co., Ltd. 7 K-SME Venture Capital Co., Ltd. 16 PROGRESS H R CO., LTD. 25 Muangthai Group Holding Co., Ltd. 8 PROGRESS SOFTWARE CO., LTD. 17 PROGRESS SERVICE SUPPORT CO., LTD. 26 Muang Thai Life Assurance Co., Ltd. 9 PROGRESS PLUS CO., LTD. 18 PROGRESS COLLECTION CO., LTD. 4) List of Associated Companies 1 Processing Center Co., Ltd. 3 Thai Digital ID Co., Ltd. 2 Muang Thai Insurance PCL 5) List of Related Companies 1 Phukha Holdings Co., Ltd. 5 Thaveepramoth Co., Ltd. 2 Superlite N.K.S. Holding Co., Ltd. 6 National ITMX Co., Ltd. 3 Nikornkij and Sons Co., Ltd. 7 Tri Danai Co., Ltd. 4 B.I.P.-1990 Co., Ltd. 6) Independent directors do not hold any directorship in Subsidiaries and Associated Companies. Annual Report 2011 302 Structure

CHANGES IN KASIKORNBANK SHARES HELD BY DIRECTORS AND EXECUTIVES IN 2011

As of December 31, 2011

KBank Shares KBank Shares Increase/ Held as of Held as of (Decrease) in Percentage of No. Name Position 31 December 31 December KBank Shares Shares Held 2010 2010 Held in 2011 (%) 1 Mr. Banyong Lamsam Chairman 3,364,420 3,364,420 0 0.141 2 Pol. Gen. Pow Sarasin Vice Chairman 344,388 374,388 30,000 0.016 3 Mr. Banthoon Lamsam Chief Executive Officer 4,580,000 1,580,000 (3,000,000) 0.066 & President 4 Mr. Sukri Kaocharern Director 9,200 9,200 0 0.000 5 Mr. Somchai Bulsook Director 291,960 291,960 0 0.012 6 Ms. Sujitpan Lamsam Director 100,000 100,000 0 0.004 7 Prof. Khunying Suchada Kiranandana Director 1,000 1,000 0 0.000 8 Professor Dr.Yongyuth Yuthavong Director - - - - 9 Dr. Abhijai Chandrasen Director and Legal Adviser 10,000 10,000 0 0.000 10 Ms. Elizabeth Sam Director 24,000 24,000 0 0.001 11 Professor Dr. Pairash Thajchayapong Director - - - - 12 Mr. Hiroshi Ota Director - - - - 13 Ms. Kobkarn Wattanavrangkul Director 2,100 2,100 0 0.000 14 Mr. Somkiat Sirichatchai Senior Executive Vice President - - - - 15 Mr. Predee Daochai Senior Executive Vice President 110 110 0 0.000 16 Mr. Teeranun Srihong Senior Executive Vice President 24,600 24,600 0 0.001 17 Mr. Krisada Lamsam Senior Executive Vice President 8,880 8,880 0 0.000 18 Ms. Kattiya Indaravijaya Executive Vice President 40 40 0 0.000 19 Ms. Sansana Sukhanunth First Senior Vice President - - - - 20 Ms. Wasana Surakit Department Head, 80 80 0 0.000 Financial Accounting Management Department 21 Ms. Nisanat Ouvuthipong Department Head, 92 92 0 0.000 Financial Planning Department

Remarks: 1) The common shares held include those of spouse and minor children. 2) The number of shares held by Mr. Banthoon Lamsam dropped, after excluding shares held by his children reaching legal age. Annual Report 2011 Structure 303

MANAGEMENT TEAM

Effective on March 1, 2012

Chief Executive Officer and President Mr. Suwat Techawatanawana First Vice President Mr. Banthoon Lamsam Mr. Porvarate Chetphongphan Mr. Anurak Tantipipattana*** Senior Executive Vice President Ms. Sansana Sukhanunth Mr. Somkiat Sirichatchai* Mr. Thawee Teerasoontornwong K-Transformation Project Mr. Predee Daochai* Mr. Boonchan Kulvatunyou Senior Vice President Mr. Teeranun Srihong* Mr. Maytee Phanachet Ms. Pranee Tirasest Mr. Krisada Lamsam* Mr. Art Wichiencharoen Ms. Sawakon Makasawat Executive Vice President Ms. Sukonrat Bhurivatana Ms. Varaluck Aphikulvanich Mr. Pakorn Partanapat Ms. Sarunya Leelarasamee Mr. Wichai Jermhansa Mr. Thiti Tantikulanan Mr. Photjanart Sangpruaksa First Vice President Mr. Surasak Dudsdeemaytha Ms. Sopa Noonate Ms. Charassri Charoenpol Mr. Prasopsuk Damrongchietanon Mr. Vallop Vongjitvuttikrai Mr. Sorrasak Pheongrattana Ms. Kattiya Indaravijaya** Mr. Pattanapong Tansomboon Ms. Supin Makboonprasith Dr. Adit Laixuthai Mr. Pipavat Bhadranavik Mr. Songpol Chevapanyaroj Mr. Nopadej Karnasuta Compliance and Audit Division Mr. Vasin Vanichvoranun Mr. Vichai Tangjettanaporn Compliance Department Mr. Wirawat Panthawangkun First Vice President Mr. Krit Jitjang Corporate Secretariat Division Mr. Weeravej Sirichatchai*** Mr. Somkid Jiranuntarat Office of Corporate Secretary Mr. Pipit Aneaknithi Senior Vice President Internal Audit Department Mr. Patchara Samalapa Ms. Marisa Watthaphanich*** First Vice President Mr. Ampol Polohakul Ms. Prayoonsri Katanyutanon*** Mr. Krisana Tesprasit Dr. Pipatpong Poshyanonda First Vice President Mr. Passakorn Onpanich-aree*** Mr. Chatchai Payuhanaveechai Ms. Nuchsran Ratanachuchote Ms. Peerapat Wongcharoenwatana Mr. Chongrak Rattanapian Ms. Pranee Visitkitchakarn Ms. Pimpavee Sirivallop First Senior Vice President Mr. Surapong Bumroongsook Ms. Phoranee Rhuwadhana Ms. Patcharin Vongsiridej Mr. Siripong Nandhasri Mr. Tawit Thanachanan Corporate Communications and Relations Mr. Chartchai Sundharagiati Department Risk Asset Review Department Mr. Suwat Charoenvijitchai Senior Vice President First Vice President Mr. Pongpichet Nananukool Ms. Chitravinee Vannakorn*** Mr. Kittichat Darnvachirakul*** Ms. Pannee Lertchanyakul First Vice President Ms. Visinee Samakasevee Mr. Yuthchai Chusakpakdee Mr. Rungsee Buranaprapapong Mr. Atipat Asawachinda Mr. Silawat Santivisat Corporate Strategy Management Mr. Suradech Kietthanakorn Division Ms. Kwannet Rattanaprug Corporate Strategy Department Mr. Sammit Sakulwira Senior Vice President * Domain Coordinator ** Chief Financial Officer Ms. Siranee Phoophat Ms. Porawan Rungsang *** Department Head Annual Report 2011 304 Structure

Corporate Business Division Corporate Credit Product Management International Trade and Factoring Corporate Segment Management Department Processing Department Department First Vice President Senior Vice President First Vice President Mr. Ittiporn Intravisit Ms. Sriyupa Mahaleelakul*** Ms. Chutima Mokkhasmit*** Ms. Narasiri Arthachinda First Vice President Mr. Niasinn Lamsam*** Dr. Patcharaporn Chinavicharana*** Multi-Corporate Business Department Mr. Nopporn Nuchniyom Senior Vice President Mr. Visuth Suvimolpan SME Business Division Ms. Chanoksuda Chitrattana Medium SME Segment Management Mr. Dithichai Limpodom Securities Services Department Department Mr. Surat Leelataviwat First Vice President Senior Vice President First Vice President Mr. Decha Ngamthanaphaisarn*** Mr. Nathapol Sukhum*** Ms. Kasemsri Charoensiddhi First Vice President Mr. Panya Kongkapaisal Global Business Development Mr. Chaiyot Tunpisut Ms. Patcharee Uthairatanakit Department Mr. Patinya Honsawek Small SME and Micro Segment Mr. Vongpat Bhuncharoen Corporate Channel Management Management Department Department First Vice President Large Corporate Business Department First Vice President Ms. Chalarat Phinitbenchaphol*** Senior Vice President Ms. Yukol Rompo*** Ms. Sarunya Bunyaratavej Business Marketing Management Mr. Surin Seubvongpataya Cash Management Department Department First Vice President Senior Vice President Mr. Chanathat Santiboon Ms. Hataiporn Chiemprasert*** SME Customer Relationship Ms. Jiraporn Luengtrirat First Vice President Management Department Ms. Juthatip Tasma Ms. Anchalee Charasyosvuthichai First Vice President Mr. Kant Nilubol Mr. Varatad Tantivorawong*** Mr. Noppadol Khuwattanasil International Trade Product Mr. Noppawit Thothoetwilai and Business Process Development SME Business Network 1 Ms. Patcharee Chamnong Department First Vice President Mr. Prasong Hanpiyavatanasakul Senior Vice President Ms. Ajaree Thanapongporn Mr. Worravit Pongchumrus Mr. Kittipan Jamprawit*** Mr. Chalom Patan Mr. Surapong Siwalai Corporate and SME Products Corporate Business Sales and Services Division Department Corporate Portfolio Management First Vice President Department Mr. Peerapol Karjornkiatsakul*** First Vice President Ms. Tamonwan Kulsiriruangyos***

*** Department Head Annual Report 2011 Structure 305

SME Business Network 2 Customer Relations Department Retail and SME E-Business Department Senior Vice President First Vice President First Vice President Mr. Akadej Chotivanich Ms. Satinee Srirattanapong*** Mr. Krittapat Praimanee*** Mr. Austapol Samittivatwong Mr. Srihanath Lamsam First Vice President Private Banking Department Mr. Anan Chongsuviwatwong Service and Sales Network 1 Mr. Charat Siriphongvuttikorn Consumer Sales Management Senior Vice President Mr. Charnchai Boonpattanaporn Department Mr. Lertsak Supitayakul Mr. Niwat Yongpaibool First Vice President Ms. Rojarek Simapivapan*** Service and Sales Network 2 Retail Business Division Senior Vice President Retail Portfolio Management Retail Business Development Mr. Weeranant Chuensuwan Department Department First Vice President First Vice President Service and Sales Network 3 Ms. Panlapa Srisogsai*** Mr. Parames Promburee*** Senior Vice President Mr. Tanong Sombutpanit Consumer Segment Management Housing Loan Product Management Department and Marketing Department Service and Sales Network 4 First Vice President First Vice President First Vice President Ms. Supaneewan Chutrakul*** Mr. Alongkot Boonmasuk*** Mr. Worakit Panutat Database Marketing and Campaign Personal Loan Product Management Service and Sales Network 5 Management Department and Marketing Department First Vice President First Vice President Service and Sales Network 6 Ms. Tananart Lorthong*** Ms. Onthida Boonpiamsak*** Senior Vice President Mr. Manus Pinthong Retail Deposit and Investment Products Retail Payment and Foreign Exchange Management Department Products Management Department Service and Sales Network 7 Senior Vice President First Vice President First Vice President Ms. Manaviga Piyapimook*** Mr. James Rama Phataminviphas*** Mr. Chalermpant Pookpant Credit Card Product Management Consumer Bancassurance Business Integrated Marketing Communication and Marketing Department Management Department Department First Vice President Senior Vice President First Vice President Mr. Kamphon Sutthiphichet*** Ms. Kitiya Rerkpooritat*** Mr. Kritapas Kusmith*** First Vice President Unsecured Credit Product Operation Mr. Tassapong Budsayaplakorn Department First Vice President Mr. Nimit Polchai*** *** Department Head Annual Report 2011 306 Structure

Business Channel Management Enterprise Risk Management Asset Quality Management Network Department Division First Vice President Senior Vice President Integrated Risk Management Mr. Somyos Boonma Mr. Mogul Posayapisith*** and Analytics Department Senior Vice President Asset Quality Management Network 1 Sales and Service Network Dr. Wichai Narongwanich*** Development and Support Department First Vice President Asset Quality Management Network 2 Senior Vice President Dr. Sanphet Sukhapesna First Vice President Mr. Kittipong Koomman*** Ms. Udomluk Tantbirojn Mr. Sittiporn Damsaengsawat Mr. Wirot Tantiapikun Consumer Financial Advisory Asset Quality Management Network 3 Department Credit Policy and Risk Management First Vice President Department Asset Quality Management Network 4 Ms. Umapan Charoenying*** First Vice President Ms. Pichavadee Charupattanapornkit Asset Quality Management Network 5 Affluent Wealth Management Department Mr. Thitipat Na-Pombejra First Vice President Asset Quality Management Network 6 Ms. Janchai Angsamaporn*** Credit Underwriting Department First Vice President Senior Vice President Mr. Pongchet Mangkalaphiban Electronic Channel and Sales Ms. Rattanapun Srimaneekulroj*** and Service Network Operation Mr. Worawit Kiatthawee-anand*** Retail and SME Business Collection Support Department First Vice President and Recovery Department First Vice President Ms. Chatuporn Suvimolpan Senior Vice President Mr. Phole Dhanashoti*** Mr. Jittipol Jantanarat Mr. Chitcharoen Phichitkurugarn*** Ms. Monta Voraprasit Capital Markets Business Ms. Nardsinee Boonsunanondha Finance and Control Division Division Ms. Nartsinee Sarnvanichpitak Central Treasury Department Ms. Nidapa Sutiratana First Vice President China Business Division Ms. Sukontha Chaisataworawong Dr. Karin Boonlertvanich*** China Business and Overseas Office Ms. Nipaporn Roongrattanapitak Management Department Legal Department Senior Vice President Senior Vice President Financial Planning Department Mr. Anan Lapsuksatit Mr. Cheewin Prangchaikul*** First Vice President Mr. Pattarapong Kanhasuwan*** First Vice President Ms. Nisanat Ouvuthipong*** First Vice President Ms. Pokkes Wongkittiruk Mr. Chat Luangarpa Mr. Chaivudh Chaiphan Asset Quality Management Department Mr. Kin Chong Choi First Vice President Ms. Rungrat Taechawinyutham Ms. Mookda Soontornsingha Mr. Phaisarn Vorasetsiri*** Mr. Wichai Yongchaitrakul *** Department Head Annual Report 2011 Structure 307

Financial Accounting Management Credit Processing Department IT Quality Assurance Department and Risk Management Department Senior Vice President SME Credit and Housing Loan Approval First Vice President Ms. Wasana Surakit*** Processing Department Mr. Yongyut Yodinlom*** First Vice President Systems Division Mr. Dolapar Petpiroon IT User Service Department Process Development Department Mr. Somsit Ussavanuphap*** First Vice President First Vice President Mr. Thanit Shumnij Mr. Chalongchai Sasibutra*** Mr. Prasong Chanwitgan Ms. Sujira Suthiworapunchai*** Cash and Payment Processing Human Resource Division Department Human Resource Management Information Management Department Senior Vice President Department Senior Vice President Mr. Banjoed Jareyanukeja*** Senior Vice President Ms. Soopanit Rojanasaranrom*** Ms. Duenpen Pawakranond*** First Vice President Ground Building and Facilities Ms. Oratai Trimungklayon Ms. Patcharee Chitrabumrung Management Department First Vice President Ms. Usa Coasol First Vice President Ms. Nitaya Phithaksphongs Mr. Pornchai Yongnoppakul*** Mr. Prasit Ongarttrakul Information Technology Management Ms. Sunan Siriaksorn*** Department Procurement Management Department Senior Vice President First Vice President Employee Relations Department Ms. Orn-Anong Thonguthai*** Ms. Choompit Wattanachai*** Senior Vice President First Vice President Ms. Somsri Lertsarunyapong Mr. Thanawat Duang-Udom*** Ms. Bunga Setasathid Mr. Surimet Phothongsunan First Vice President Mr. Jarung Kiatsupapong Ms. Tikumporn Papraisawang Mr. Pennung Chaiyachit Mr. Satit Kriyansom Mr. Wiwat Rumratana Ms. Suvanee Panubuse IT Services Sourcing Management Mr. Suvichai Lovichit and Governance Department Human Resource Development Senior Vice President Department Information Technology Planning Mr. Winij Panamaeta*** First Vice President Department Ms. Passamon Vichitkamthorn*** First Vice President IT Infrastructure Management Ms. Pensiri Dudsdeemaytha*** Department Dr. Piyawat Jirapongsuwan First Vice President Mr. Mongkol Uechitanantakul Treasury and Capital Markets Operation Mr. Surose Petchakich*** Department Mr. Wichai Sinboonmee First Vice President Ms. Bunvarong Bunyaviroj***

*** Department Head Annual Report 2011 308 Structure

INVESTMENTS OF KASIKORNBANK IN OTHER COMPANIES

As of December 31, 2011 The following is a list of companies in which KASIKORNBANK made investments, in the form of shareholding of 10 percent or more of the total number of shares issued.

Total Number Total Number Proportion Location of of Total Type No.Name of Company Corporate Type of Business of Paid-up of Shares Shares Held of Share Headquarters Shares Held (%) 1 KASIKORN ASSET MANAGEMENT CO., LTD. Bangkok Mutual Fund Management 27,154,274 27,154,274 100.00 Common Share Tel. 0 2693 2300 Fax 0 2693 2320 2 KASIKORN RESEARCH CENTER CO., LTD. Bangkok Services 100,000 100,000 100.00 Common Share Tel. 0 2273 1144 Fax 0 2270 1218 3 KASIKORN SECURITIES PCL Bangkok Securities 100,000,134 99,995,762 99.99 Common Share Tel. 0 2696 0000 Fax 0 2696 0099 4 KASIKORN LEASING CO., LTD. Bangkok Auto Leasing 90,000,000 90,000,000 100.00 Common Share Tel. 0 2696 9999 Fax 0 2696 9988 5 KASIKORN FACTORY & EQUIPMENT CO., LTD. Bangkok Equipment Leasing 1,600,000 1,600,000 100.00 Common Share Tel. 0 2290 2900 Fax 0 2276 9710 6 Phethai Asset Management Co., Ltd. Bangkok Services 335,000,000 335,000,000 100.00 Common Share Tel. 0 2694 5000 ext. 5208 Fax 0 2694 5205 7 K-SME Venture Capital Co., Ltd. Bangkok Joint Venture 20,000,000 20,000,000 100.00 Common Share Tel. 0 2693 2333 Fax 0 2693 2323 8 PROGRESS SOFTWARE CO., LTD. Bangkok Services 100,000 100,000 100.00 Common Share Tel. 0 2225 7900-1 Fax 0 2225 5654-5 9 PROGRESS PLUS CO., LTD. Bangkok Services 230,000 230,000 100.00 Common Share Tel. 0 2225 2020 Fax 0 2225 2021 10 PROGRESS APPRAISAL CO., LTD. Bangkok Services 5,000 5,000 100.00 Common Share Tel. 0 2270 6900 Fax 0 2278 5035 11 PROGRESS GUNPAI CO., LTD. Bangkok Services 200,000 200,000 100.00 Common Share Tel. 0 2273 3900 Fax 0 2270 1262 12 PROGRESS MANAGEMENT CO., LTD. Bangkok Services 60,000 60,000 100.00 Common Share Tel. 0 2275 1880 Fax 0 2275 1889-91 13 PROGRESS FACILITIES MANAGEMENT CO., LTD. Bangkok Services 50,000 50,000 100.00 Common Share Tel. 0 2273 3288-91 Fax 0 2273 3292 14 PROGRESS SERVICE CO., LTD. Bangkok Services 20,000 20,000 100.00 Common Share Tel. 0 2273 3293-4 Fax 0 2273 3292 15 PROGRESS LAND AND BUILDINGS CO., LTD. Bangkok Real Estate Development 1,879,000 1,879,000 100.00 Common Share Tel. 0 2275 1880 Fax 0 2275 1889 16 PROGRESS STORAGE CO., LTD. Bangkok Services 30,000 30,000 100.00 Common Share Tel. 0 2273 3833 Fax 0 2271 4784 17 PROGRESS HR CO., LTD. Bangkok Services 10,000 10,000 100.00 Common Share Tel. 0 2270 1070-6 Fax 0 2270 1068-9 18 PROGRESS SERVICE SUPPORT CO., LTD. Bangkok Services 40,000 40,000 100.00 Common Share Tel. 0 2470 5420 Fax 0 2888 8882 19 PROGRESS COLLECTION CO., LTD. Bangkok Services 50,000 50,000 100.00 Common Share Tel. 0 2273 3210 Fax 0 2273 2559 20 PROGRESS TRAINING CO., LTD. Bangkok Services 17,000 17,000 100.00 Common Share Tel. 0 2470 6273 Fax 0 2470 3198

Note: Total number of paid-up shares and total number of shares held include common shares and preferred shares. Annual Report 2011 Structure 309

Total Number Total Number Proportion Location of of Total Type No.Name of Company Corporate Type of Business of Paid-up of Shares Shares Held of Share Headquarters Shares Held (%) 21 Thanyathanathavee Co., Ltd. Bangkok Holding 114,865,000 114,865,000 100.00 Common Share Tel. 0 2470 6330 Fax 0 2470 2652 22 Thanyathamrongkij Co., Ltd. Bangkok Holding 114,865,000 114,865,000 100.00 Common Share Tel. 0 2470 6330 Fax 0 2470 2652 23 Thanyanithiwattana Co., Ltd. Bangkok Holding 449,930,000 220,465,700 49.00 Common Share Tel. 0 2470 6330 Fax 0 2470 2652 24 Processing Center Co., Ltd. Bangkok Services 500,000 150,000 30.00 Common Share Tel. 0 2237 6330-4 Fax 0 2237 6340 25 Muangthai Group Holding Co., Ltd. Bangkok Holding 45,865,949 11,925,147 26.00 Common Share Tel. 0 2274 9400 ext. 4010 Fax 0 2276 1997-8 26 WTA (THAILAND) Co., Ltd. Bangkok Trading 1,000 249 24.90 Common Share Tel. 0 2699 1609 Fax 0 2643 1881 27 National ITMX Co., Ltd. Bangkok Services 500,000 92,300 18.46 Common Share Tel. 0 2650 6800 28 Muangthai Holding Co., Ltd. Bangkok Holding 45,600,000 4,560,000 10.00 Common Share Tel. 0 2274 9400 29 Advance Micro Tech Co., Ltd. Bangkok Trading 600,000 60,000 10.00 Common Share Tel. 0 2739 4095-8 Fax 0 2739 4099 30 Ban Somthavil Co., Ltd. Bangkok Real Estate Development 1,000,000 100,000 10.00 Common Share Tel. 0 2332 0352-71 ext. 2344 Fax 0 2332 0372-4 31 Khunka Palang Thai Co., Ltd. Bangkok Energy & Utilities 10,000 1,000 10.00 Common Share Tel. 0 2716 1600 Fax 0 2716 1488 32 Palit Palangngan Co., Ltd. Bangkok Energy & Utilities 10,000 1,000 10.00 Common Share Tel. 0 2716 1600 Fax 0 2716 1488 33 Seacon Development Public Co., Ltd. Bangkok Services 5,740,000 574,000 10.00 Common Share Tel. 0 2721 8888 Fax 0 2721 9444 34 T S C Innovation Co., Ltd. Bangkok Telecommunications 30,000,000 3,000,000 10.00 Common Share Tel. 0 2682 9700 Fax 0 2682 9709 35 Unitas Co., Ltd. Bangkok Land Rental 110,532 11,053 10.00 Common Share Tel. 0 2249 0491 Fax 0 2249 0503 36 WEI POA Co., Ltd. Hong Kong Agro-Industry 5,500,000 550,000 10.00 Common Share 37 Zin Suapah Co., Ltd. Bangkok Services 6,000 600 10.00 Common Share Tel. 0 2221 5895 Fax 0 2221 5895

Note: Total number of paid-up shares and total number of shares held include common shares and preferred shares. OTHER INFORMATION

311 Reference Information 312 Major Shareholders 313 Awards and Commendations Annual Report 2011 Other Information 311

REFERENCE INFORMATION

KASIKORNBANK PCL conducts commercial banking business, securities business, and other related business under the Financial Institution Business Act, Securities and Exchange Act and other related regulations. Head Office : 1 Soi Rat Burana 27/1, Rat Burana Road, Rat Burana Sub-District, Rat Burana District, Bangkok 10140, Thailand Company Registration Number : 0107536000315 (formerly PCL 105) Telephone : 0 2222 0000 Fax : 0 2470 1144-5 K-Contact Center : 0 2888 8888 (Thai) 0 2888 8888 (English) 0 2800 8888 (Mandarin) Website : www.kasikornbankgroup.com Names, Offices, Telephone and Fax Numbers of Referenced Entities Registrar - Ordinary Shares : Thailand Securities Depository Company Limited The Stock Exchange of Thailand Building, 62 Ratchadaphisek, Klong Toei, Bangkok 10110 Tel. 0 2229 2800 Fax 0 2359 1259 - KASIKORNBANK Subordinated : KASIKORNBANK PUBLIC COMPANY LIMITED Debentures No. 1/2008, due for redemption in 2018 1 Soi Rat Burana 27/1, Rat Burana Road, - KASIKORNBANK Subordinated Rat Burana Sub-District, Rat Burana District, Bangkok 10140 Debentures No. 1/2009, due for redemption in 2019 Tel. 0 2222 0000 - KASIKORNBANK Subordinated Fax 0 2470 1144-5 Debentures No. 1/2010, due for redemption in 2020 - KASIKORNBANK 8 1/4% Subordinated Bonds due 2016 : The Bank of New York Mellon, One Wall Street New York, N.Y. 10286, U.S.A. Tel. (1) 212 495 1784 Fax (1) 212 495 1245 Auditors : Mr. Nirand Lilamethwat, CPA No. 2316 Mr. Winid Silamongkol, CPA No. 3378 Ms. Somboon Supasiripinyo, CPA No. 3731 Ms. Wilai Buranakittisopon, CPA No. 3920 KPMG Phoomchai Audit Limited Empire Tower, 50-51 Floor, 195 South Sathorn Road, Yannawa, Sathorn District, Bangkok 10120 Tel. 0 2677 2000 Fax 0 2677 2222 Legal Adviser : Dr. Abhijai Chandrasen 22 Soi Soonthornsaratoon (On Nut 21/1), Sukhumvit 77, Suan Luang District, Bangkok 10250 Tel. 0 2730 6969-76 Fax 0 2730 6967-8 Annual Report 2011 312 Other Information

MAJOR SHAREHOLDERS

List of the fi rst 10 major KBank shareholders The Bank has scheduled the record date on September 8, 2011, to determine the list of shareholders entitled to receive dividend and the shareholders register book closing date on September 9, 2011 to compile the list of shareholders. Number of Percentage of Rank Name Common Shares Common Shares 1 THAI NVDR CO., LTD. 596,569,130 24.927 2 STATE STREET BANK AND TRUST COMPANY 201,977,965 8.439 3 CHASE NOMINEES LIMITED 42 120,243,900 5.024 4 STATE STREET BANK EUROPE LIMITED 113,429,867 4.740 5 NORTRUST NOMINEES LTD. 74,454,926 3.111 6 HSBC (SINGAPORE) NOMINEES PTE LTD. 55,175,660 2.305 7 STATE STREET BANK AND TRUST COMPANY FOR AUSTRALIA 44,953,502 1.878 8 CHASE NOMINEES LIMITED 1 43,550,291 1.820 9 THAILAND SECURITIES DEPOSITORY COMPANY LIMITED 36,917,854 1.543 FOR DEPOSITORS (THAI SECURITIES - HOLDER ACCOUNT) 10 SOCIAL SECURITY OFFICE (2 CASES) 29,492,850 1.232 OTHERS 1,076,494,248 44.980 Total paid-up capital 2,393,260,193 100.000

Thai Shareholders 1,221,041,351 51.02 Foreign Shareholders 1,172,218,842 48.98 KASIKORNBANK’s common shares at September 9, 2011 Registered capital : 3,048,614,697 shares, at Baht 10 per share, totaling Baht 30,486,146,970 Paid-up capital : 2,393,260,193 shares, at Baht 10 per share, totaling Baht 23,932,601,930 Annual Report 2011 Other Information 313

AWARDS AND COMMENDATIONS

In 2011, KASIKORNBANK received many awards • NACC Integrity Awards 2011 for the second and commendations, i.e. consecutive year (2010 - 2011) from the Office of National Anti-Corruption Commission (NACC) KASIKORNBANK • SET Award of Honor for Continuous Excellence in Corporate Governance Report (2008 - 2011), In Recognition of Management from the SET Awards 2011 ceremony organized by • Best Domestic Bank in Thailand 2011 for the second the Stock Exchange of Thailand (SET) and Money consecutive year, from Asiamoney magazine and Banking magazine, as a listed company that • Asia Risk Awards 2011, House of the Year, has complied with good corporate governance Thailand from Asia Risk magazine principles • Asia Pacific Top Company for Leaders 2011 • The Asset’s Platinum Awards in 2011, for the second based on a survey and rating conducted by consecutive year (2010 - 2011), from The Asset Aon Hewitt, Fortune magazine and The RBL Group magazine; the top award granted to an organization • Excellent Labour Relations and Welfare Award 2011, demanstrating excellence in 6 aspects, namely; in the large enterprise with labour union category Financial Performance, Management Acumen, for the sixth consecutive year (2006 - 2011), Corporate Governance, Social Responsibility, from the Ministry of Labour Environmental Responsibility, and Investor Relations

KBank executives represented the Bank in receiving the Asia Pacific Top Company KBank executives represented the Bank in receiving the SET Award of Honor for for Leaders 2011 award based on a survey and rating conducted by Aon Hewitt, Continuous Excellence in Corporate Governance Report (2008 - 2011) in cooperation with Fortune Magazine and The RBL Group. and the Best Investor Relations Award for listed company with market capitalization of over Baht 10 billion for the second consecutive year (2010 - 2011), from the SET Awards 2011 organized by the Stock Exchange of Thailand and Money & Banking magazine. Annual Report 2011 314 Other Information

• Corporate Governance Asia Annual Recognition • Best Investor Relations Award for listed company Awards 2011 for the seventh consecutive year, with market capitalization over Baht 10 billion, organized by Corporate Governance Asia magazine. for the second consecutive year (2010 - 2011) • Asian Corporate Director Recognition Awards 2011 from the SET Awards 2011 ceremony, for the second consecutive year (2010 - 2011), organized by the Stock Exchange of Thailand (SET) from Corporate Governance Asia magazine, and Money & Banking magazine. The Bank has to KASIKORNBANK CEO and President received this award for the fourth time. Banthoon Lamsam • Best Investor Relations Officer, for the third consecutive • Four awards based on Corporate Governance year (2009 - 2011), based on SAA Awards for Listed Poll 2011, from Asiamoney magazine: Companies 2011, organized by the Securities 1. Best Overall for Corporate Governance Analysts Association. 2. Best for Responsibilities of Management • Two awards based on the 1st Asian Excellence and the Board of Directors Recognition Awards 2011, organized by 3. Best for Shareholders’ Rights Corporate Governance Asia magazine: and Equitable Treatment 1. Asia’s Best CEO (Investor Relations) 4. Best for Investor Relations 2. Best Investor Relations by a Thai Company • Thailand Energy Awards 2011, in the Excellent Energy Efficiency Building category by the Department of Alternative Energy Development and Efficiency, the Ministry of Energy

KBank executive represented the Bank in receiving the Corporate Governance Asia KBank executive was presented with the NACC Integrity Award 2011 by the National Annual Recognition Awards 2011 by Corporate Governance Asia magazine for Anti-Corruption Commission (NACC) for the second consecutive year (2010 - 2011). the seventh consecutive year. Annual Report 2011 Other Information 315

• Certificate of ‘Witness for Good Deeds 1. Best Retail Bank in Thailand with Volunteer Spirit’ from the Endless Transmission for the second consecutive year of Goodness Program of the Committee on 2. Best Retail Banking Brand Public Relations for the Celebrations on the Auspicious • Thailand’s Most Innovative Companies 2011, Occasion of His Majesty the King’s 7th Cycle Birthday in the service business category for the second Anniversary, December 5, 2011, for KASIKORNBANK’s consecutive year (2010 - 2011), based on voluntary activities during the floods and other events. the Thailand’s Most Innovative Companies 2011, organized by the Faculty of Commerce In Recognition of Service and Accountancy, Chulalongkorn University • Best Retail Bank of the Year 2011 for the fouth and Krungthep Turakij newspaper consecutive year (2008 - 2011), voted by • Top Winner of IDC Enterprise Innovation Awards 2011 customers and the public who attended for the second consecutive year (2010 - 2011), the 11th Money Expo 2011, organized by from IDC’s Asia/Pacific, a leading IT researcher Money & Banking magazine • Two awards based on the Thailand ICT Excellence • Two awards based on the International Excellence Awards 2010, organized by the Thailand Management in Retail Financial Services Awards 2011, Association (TMA) in cooperation with the National organized by The Asian Banker magazine: Electronics and Computer Technology Center

KBank executive represented the Bank in receiving the Asia Risk Award 2011, KBank executive represented the Bank in receiving the Best Retail Bank House of the Year, Thailand, from Asia Risk magazine. in Thailand from The Asian Banker for the second consecutive year Annual Report 2011 316 Other Information

(NECTEC), Software Park Thailand, and College of • Best Bank Website award for the fifth consecutive Innovative Education of Thammasat University (CITU): year (2006 - 2010), for being the most visited 1. Innovative Project Award - in recognition of banking site based on the Truehits Web Awards 2010, the Bank’s K-My ATM organized by www.truehits.net 2. Business Enabler Award in the Finance • Best SME Bank in Thailand 2011 for the second and Banking sector - in recognition of the Bank’s consecutive year (2010 - 2011) based on The Asset online payment service via K-Credit/Debit Card Triple A Transaction Banking Awards 2011 with Verified by Visa and One Time Password organized by The Asset magazine (VbV OTP) sent by SMS for online shopping • Best Trade Finance Provider 2011 • Two awards by Visa International (Asia Pacific) for the fourth consecutive year (2008 - 2011), Co., Ltd.: from Global Finance magazine 1. VISA Business Performance Award 2010 - • Best Trade Finance Bank in Thailand 2011 in recognition of the Bank as the card issuer based on a survey from GTR Asia Leaders with the highest volume of VISA card spending in Trade Awards 2011, organized by in Thailand for 2010 Global Trade Review magazine 2. VISA Debit Innovation Award 2010 - in recognition • Best Trade Finance Bank in Thailand 2011 from of the Bank’s excellence in debit card products, The Asset magazine, based on The Asset Triple A card supplementary services, consistent marketing Transaction Banking Awards 2011 activities via innovations and online media to meet customers’ needs

KBank executive represented the Bank in receiving the Best SME Bank, KBank executives represented the Bank in receiving the Best Foreign Exchange Thailand 2011, for the second consecutive year and the Best Trade Finance Bank Bank 2011, the Best Cash Management Bank 2011 for the third consecutive year in Thailand 2011 from The Asset magazine. (2009 - 2011) and the Best Trade Finance Bank 2011 for the third consecutive year (2009 - 2011), from FinanceAsia magazine. Annual Report 2011 Other Information 317

• Best Trade Finance Bank 2011 1. Best Bond House for the fourth consecutive year for the third consecutive year (2009 - 2011) (2007 - 2010) from FinanceAsia magazine 2. Deal of the Year for the fourth consecutive year • The Asian Banker Achievement Award for (2007 - 2010) Cash Management in Thailand for the second 3. Most Creative Deal consecutive year (2010 - 2011), from The Asian 4. Sales of the Year Banker journal, based on The Asian Banker • Two awards based on The Asset Triple A Country Transaction Banking Awards 2011 Awards 2011, organized by The Asset magazine: • Best Cash Management Bank 2011 1. Best Debt House Thailand 2011 for the third consecutive year (2009 - 2011), for the fourth consecutive year (2008 - 2011) from FinanceAsia magazine 2. Best Domestic Bond House Thailand 2011 • Four awards based on the ThaiBMA Best Bond • Best Domestic Debt House in Thailand 2011 Awards 2010, organized by the Thai Bond Market from Asiamoney magazine Association (ThaiBMA):

KBank executive was presented with the VISA Business Performance Award 2010 KAsset executive represented the company in receiving the Reader’s Digest and the VISA Debit Innovation Award 2010 from VISA International (Asia Pacific) Ltd. Trusted Brand 2011 Award’s Gold Winner for Investment Fund Company category, voted by readers of Reader’s Digest magazine in Thailand, for the fourth consecutive year (2008 - 2011). Annual Report 2011 318 Other Information

• Best Bond House 2011 from Alpha Southeast • Best Foreign Exchange Bank 2011 Asia magazine from FinanceAsia magazine • APAC Renewable / Solar Deal of the Year 2010 - • Best Foreign Exchange Bank for Corporates in recognition of Natural Energy Development / and Financial Institutions 2011 Lopburi Solar based on the Deals of the Year 2010, by Alpha Southeast Asia magazine organized by Project Finance magazine • Three awards based on the FX Poll 2011, • Bond (Corporate) Deal of the Year in Asia Pacific - conducted by Asiamoney magazine: in recognition of Baht 4 billion PTT 100-year debenture 1. Best Domestic Provider of FX Services based on the Deal of the Year 2011, organized by in Thailand, as Voted by Financial Institutions The Banker magazine 2. Best Domestic Provider of FX Services • Two awards based on the FinanceAsia Achievement in Thailand, as Voted by Corporates Awards 2011, organized by FinanceAsia magazine: 3. Best Domestic FX Provider of Single-Bank 1. Best Local Currency Bond - in recognition Electronic Trading Platform in Thailand, of Thailand Baht 40 billion Inflation-Linked Bond as Voted by Corporates 2. Best Thailand Deal - in recognition of Thailand • Five awards based on the Fixed Income Poll 2011, Baht 40 billion Inflation-Linked Bond conducted by Asiamoney magazine:

KSecurities executives represented the company in receiving the Outstanding KLeasing executive represented the company in receiving the Best Car Leasing Securities Company Award at the SET Awards 2011, organized by of The Year 2011 award for the second consecutive year (2010 - 2011) the Stock Exchange of Thailand and Money & Banking magazine. at the 32nd Bangkok International Motor Show, organized by Grand Prix International Co., Ltd. Annual Report 2011 Other Information 319

1. Overall Best Domestic Credit Service Provider 2. Media’s Most Favorite Analyst in Thailand 3. SAA Awards for Best Analyst 2011 by Retail 2. Overall Best Domestic Interest Rates Services Investors (Energy & Petrochemicals) in Thailand 4. SAA Awards for Best Technical 2011 3. Overall Best Interest Rates Research & Market by Institutional Investors Coverage in Thailand - THB 5. SAA Awards for Best Analyst 2011 4. Overall Best for Credit in Thailand by Institutional Investors (Banking) 5. Overall Best for Interest Rates in Thailand • Outstanding Securities Company Award based on the SET Awards 2011, organized by the Stock KASIKORN ASSET MANAGEMENT CO., LTD. Exchange of Thailand and Money & Banking magazine • Reader’s Digest Trusted Brand 2011 award’s • Two awards based on Asia’s Best Analysts, Gold Winner for investment fund company category, organized by THE WALL STREET JOURNAL: voted by readers of Reader’s Digest magazine 1. Asia’s Best Analysts for Banking in Thailand. KAsset was the only asset management 2. Asia’s Best Analysts for Property company granted this award for the fourth consecutive year (2008 - 2011). KASIKORN LEASING CO., LTD. • Best Thailand Onshore Fund House based on • Best Car Leasing of The Year 2011, for the third the Asian Investor Investment Performance consecutive year (2009 - 2011) a national award Awards 2011, organized by Asian Investor magazine granted to KLeasing for its hire purchase and leasing service, with an acceptable reputation KASIKORN SECURITIES PCL in terms of performance, vision, business plan, • Five awards based on the SAA Awards and service quality satisfaction from car producers, for Analysts 2011, organized by dealers, and general customers, based on Securities Analysts Association the 32nd Bangkok International Motorshow, 1. SAA Awards for Analysts 2011 by Retail organized by Grand Prix International Co., Ltd. Investors - Overall: Best Research House KASIKORNBANKGROUP

321 KASIKORNBANK Domestic Branch Foreign Exchange Booth K-Safe Deposit Box Center THE WISDOM Exclusive Center THE WISDOM Corner THE WISDOM K-Safe Deposit Box Center K-WePlan Branch Corporate Business Center Corporate & SME Service Center SME Business Center Overseas Offi ce

347 K Companies Annual Report 2011 KASIKORNBANKGROUP 321

KASIKORNBANKGROUP

KASIKORNBANK Head Office Address : 1 Soi Rat Burana 27/1, Rat Burana Road, Rat Burana Sub-District, Rat Burana District, Bangkok 10140, Thailand Telephone : 0 2222 0000 Fax : 0 2470 1144-5 K-Contact Center : 0 2888 8888 (Thai), 0 2888 8888 (English), 0 2800 8888 (Mandarin) SWIFT : KASITHBK Website : www.kasikornbankgroup.com Financial Servicing Branches and Offices Domestic Branch 816 Branches 1. Bangkok Branch 286 Branches 2. Upcountry Branch 530 Branches Foreign Exchange Booth 99 Branches K-Safe Deposit Box Center 2 Branches THE WISDOM Exclusive Center 9 Branches THE WISDOM Corner 19 Branches THE WISDOM K-Safe Deposit Box Center 3 Branches K-WePlan Branch 207 Branches Corporate Business Center 8 Centers Corporate & SME Service Center 62 Centers SME Business Center 114 Centers Overseas Office 8 Branches

K Companies 5 Companies Annual Report 2011 322 KASIKORNBANKGROUP

DOMESTIC BRANCH

286 Bangkok Branches No. Branch Tel. Fax No. Branch Tel. Fax 1 All Seasons Place 0 2251 4610-4 0 2251 4615 44 Central Lat Phrao 2 0 2541 1631-4 0 2541 1635 2 Asok 0 2204 0188-92 0 2204 0193 45 Central Pin Klao 0 2424 3595-6 0 2424 2834 3 Ban Mo 0 2225 3089-90 0 2225 3291 46 Central Plaza Grand 0 2160 3813-7 0 2160 3818 4 Ban Thad Thong 0 2215 4674-5 0 2215 5971 Rama IX 5 Bang Bon 0 2899 8330-7 0 2416 4396 47 Central Ram Intra 0 2521 2813-4 0 2521 1140 6 Bang Khae 0 2801 0610-9 0 2454 2891 48 Central Rama II 0 2872 4250-2 0 2872 4555 7 Bang Khen 0 2930 1234-7 0 2513 9040 49 Central Rama III 0 2673 6338-9 0 2673 6240 8 Bang Khun Non 0 2882 5818 0 2882 5495 50 Central World 0 2251 0231-5 0 2251 0236 9 Bang Khun Thian 0 2878 0023-4 0 2878 0526 51 Chakkrawat 0 2225 5807-8 0 2225 9675 10 Bang Krabu 0 2669 0870-6 0 2669 0877 52 Chaloem Phrakiat 0 2143 9653-7 0 2143 9658 11 Bang Lamphu 0 2281 5187-90 0 2629 0947 Government Complex 12 Bang Mot 0 2870 0224-30 0 2428 2025 (A Building) 13 Bang Pakok 0 2874 4764-5 0 2428 3523 53 Chaloem Phrakiat 0 2143 9648-52 0 2143 9659 14 Bang Phlat 0 2885 3333-6 0 2434 6197 Government Complex 15 Bang Pho 0 2912 6790-3 0 2585 7700 (B Building) 16 Bang Rak 0 2630 6370-7 0 2266 7540 54 Chamchuri Square 0 2160 5085-9 0 2160 5090 17 Bang Son 0 2910 8768-9 0 2587 0094 55 Charansanitwong 11 0 2412 0068-71 0 2412 8296 18 Bang Su 0 2587 0219-21 0 2587 0652 56 Charoen Krung 0 2623 2609-12 0 2623 2614 19 Bang Yikhan 0 2883 0163-9 0 2433 1337 57 Chatuchak Plaza 0 2265 9502-6 0 2265 9507 20 Bangkok Hospital 0 2716 5534-8 0 2716 5539 58 Chok Chai 4 0 2539 8735-7 0 2530 4584 21 Big-C Bang Bon 0 2417 2351-5 0 2417 2356 59 Chong Nonsi 0 2285 2071-3 0 2678 0844 22 Big-C Bang Pakok 0 2428 9833-5 0 2428 9857 60 Court of Justice 0 2512 8130-4 0 2512 8135 23 Big-C Hua Mak 0 2314 3061-2 0 2314 3720 61 CP Tower 0 2238 3044-8 0 2238 3049 24 Big-C Lat Phrao 2 (Soi 9) 0 2512 0463-4 0 2512 0458 62 Crystal Design Center 0 2102 2470-4 0 2102 2475 25 Big-C On Nut 0 2311 1021-5 0 2311 1017 63 Cyber World 0 2645 2314-8 0 2645 2319 26 Big-C Phetkasem 2 0 2421 7631-2 0 2421 7622 64 Dao Khanong 0 2877 5671-2 0 2476 4463 (Phuttha Monthon Sai 3) 65 Din Daeng 0 2248 1841 0 2248 1843 27 Big-C Pracha Uthit 0 2464 3808-9 0 2464 3919 66 Ekkamai 0 2714 1081-8 0 2714 0410 28 Big-C Ram Intra 0 2551 4001-3 0 2551 4005 67 Empire Tower 0 2670 1755-8 0 2670 1759 29 Big-C Rama II (Tha Kham) 0 2416 5037-8 0 2416 8062 68 Energy Complex (PTT) 0 2537 0352-6 0 2537 0357 30 Big-C Rama II 2 0 2451 3756-7 0 2451 3760 69 Esplanade 0 2660 9224-8 0 2660 9229 (Kan Kheha Thonburi 3) Ratchada Phisek 31 Big-C Rama IV 0 2259 7132-6 0 2259 7137 70 Fashion Island Ram Indra 0 2519 4813-6 0 2519 4817 32 Big-C Rat Burana 0 2873 1268 0 2873 1269 71 Fortune Town 0 2246 7519-23 0 2246 7524 33 Big-C Ratchada Phisek 0 2248 0290-4 0 2248 0295 72 Hua Mak 0 2732 2560-3 0 2375 6487 34 Big-C Ratchadamri 0 2250 5430-4 0 2250 5435 73 Huai Khwang 0 2692 1375-9 0 2276 1820 35 Big-C Rom Klao 0 2543 8273-7 0 2543 8278 74 IT Square 0 2576 0691-5 0 2576 0696 36 Big-C Sai Mai 0 2536 0403-6 0 2536 0422 75 Jewelry Trade Center 0 2236 6063-7 0 2236 6068 37 Big-C Saphankhwai 0 2616 7468-70 0 2616 7471 Building 38 Bo Bae Tower 0 2282 9674-6 0 2282 9803 76 Kasetsart University 0 2579 4510 0 2579 4595 39 Bukkhalo 0 2877 6689-96 0 2477 2812 Bang Khen 40 Central Bang Na 0 2398 7240-2 0 2398 8483 77 Khlong Chan 0 2733 7136-40 0 2733 7141 41 Central Bang Na 2 0 2398 5820-1 0 2398 5827 78 Khlong San 0 2437 0260-2 0 2439 3344 42 Central Chit Lom 0 2255 4804-8 0 2255 4809 79 Khlong Thom 0 2221 3239-40 0 2221 3868 43 Central Lat Phrao 0 2541 1543-5 0 2541 1548 80 Khlong Toei 0 2671 2042-7 0 2249 5011 Annual Report 2011 KASIKORNBANKGROUP 323

No. Branch Tel. Fax No. Branch Tel. Fax 81 King Mongkul’s Institute of 0 2326 4771-5 0 2326 4776 122 Phetkasem 51 0 2801 3626-9 0 2454 2975 Technology Ladkrabang 123 Phetkasem Avenue 0 2809 2747-8 0 2809 3313 82 King Phet 0 2612 0463-74 0 2612 1550 Bang Khae 83 Kluai Nam Thai 0 2367 3111-7 0 2367 3109 124 Pho Sam Ton 0 2891 0037-8 0 2465 4660 84 Lad Krabang 0 2326 0874-7 0 2326 0863 125 Phra Khanong 0 2711 0203-8 0 2711 1682 Industrial Estate 126 Phran Nok 0 2866 1323-7 0 2866 1328 85 Lat Krabang 0 2739 0187-94 0 2326 7198 127 Pin Klao 0 2884 6380-90 0 2433 9920 86 Lat Phrao 10 0 2938 7425-9 0 2512 5565 128 Platinum Fashion Mall 0 2121 9544-8 0 2121 9549 87 Lat Phrao 25 0 2938 3040-2 0 2513 1603 129 Pracha Niwet 1 0 2954 3334-7 0 2589 2914 88 Lat Phrao 67 0 2933 0960-8 0 2539 3273 130 Pradit Manutham 0 2515 0506-10 0 2515 0511 89 Lat Phrao 71 0 2530 3866-9 0 2530 3624 131 Pratu Nam Pathum Wan 0 2208 0112-7 0 2208 0096 90 Lat Phrao 92 0 2530 4958-60 0 2530 4966 132 Prawet 0 2726 0484-7 0 2726 0494 91 Lat Phrao 99 0 2530 0545-7 0 2530 0548 133 Pure Place 0 2372 3589-93 0 2372 3594 92 Lotus Bang Kapi 0 2375 0211-4 0 2375 0198 Ramkhamhaeng 110 93 Lotus Phetkasem 81 0 2489 2071-5 0 2489 2076 134 Ramkhamhaeng 2 0 2397 7185-9 0 2397 7190 94 Lotus Ram Intra 109 0 2175 3435-9 0 2175 3440 135 Rat Burana Main 0 2871 3650-5 0 2871 3645 95 Lotus Rama IV 0 2672 7953 0 2671 4661 136 Ratchadamri 0 2253 4997-9 0 2253 1423 96 Lotus Sukhaphiban 1 0 2947 9271-3 0 2947 9103 137 Ratchawat 0 2243 7815-7 0 2668 5637 97 Lotus Sukhumvit 101/1 0 2361 3966-70 0 2361 3971 138 Robinson Ratchada Phisek 0 2248 6923-7 0 2248 6928 98 Lotus Sutthisan 0 2276 9067-9 0 2276 9095 139 Samre 0 2438 0050-1 0 2437 8236 99 Lotus Town in Town 0 2514 9037-41 0 2514 9042 140 Sanam Pao 0 2617 2315-6 0 2617 2842 100 Lotus Wang Hin 0 2578 6341-5 0 2578 6346 141 Sao Chingcha 0 2622 0034-6 0 2622 1344 101 Lumphini 0 2287 1021-3 0 2287 1061 142 Saphan Krung Thon 0 2883 0172-9 0 2433 4554 102 Maha Phruttharam 0 2639 0740-9 0 2236 5566 143 Saphan Luang 0 2611 6183-6 0 2215 9240 103 Mahboonkrong Center 0 2216 4820 0 2216 4821 144 Saphan Mai Don Muang 0 2972 5512-20 0 2552 6544 104 Makro Charansanitwong 0 2411 3274-6 0 2411 4410 145 Saphan Phut 0 2623 7504-8 0 2623 7613 105 Maxvalu Laksi 0 2521 7932-4 0 2521 7942 146 Sathon (Saint Louis 3) 0 2212 3533-4 0 2212 3652 106 Maxvalu Phattanakan 0 2722 1004-8 0 2322 2589 147 Save-E Buddha Monthon 0 2447 9461-5 0 2447 9494 107 Min Buri 0 2918 7708-12 0 2518 1475 Sai 2 (Pin Klao) 108 Money Park 0 2686 3940-2 0 2686 3943 148 Seacon Square 0 2721 8554-61 0 2721 8562 Mahboonkrong Center 149 Seacon Square 2 0 2321 7432-6 0 2321 7437 109 Na-Na Nua 0 2655 0735-7 0 2253 0298 150 Si Wara Town in Town 0 2559 0080-2 0 2559 0086 110 Nang Loeng 0 2629 8810-7 0 2629 9379 151 Si Yaek Bang Na 0 2745 2900-5 0 2745 2905 111 Nawamin City Avenue 0 2907 2010-3 0 2907 2110 152 Si Yaek Kaset 0 2561 5231-2 0 2561 5475 112 N-Mark Plaza Bang Kapi 0 2378 1527-8 0 2378 2383 153 Si Yaek Ratchawong 0 2225 6527-9 0 2225 5753 113 On Nut 0 2742 5080-4 0 2332 5285 154 Si Yaek Saphan 0 2689 0092-8 0 2689 0694 114 On Nut 39 0 2322 6514-5 0 2721 3031 Krung Thep 115 Or Tor Kor Market 0 2278 3137-41 0 2278 3145 155 Si Yaek Thanon Chan-Liab 0 2678 4101-4 0 2678 4105 (Chatuchak) Khlong Chong Nonsi 116 Pantip Pratu Nam 0 2254 7140-4 0 2254 7145 156 Si Yaek Tossakan 0 2410 3503-4 0 2410 3887 117 Paradise Park 0 2787 1922-5 0 2787 2149 157 Si Yaek Wang Hin 0 2940 4824-8 0 2940 4840 118 Phahon Yothin Main 0 2273 3337 0 2273 1399 158 Siam Paragon 0 2610 9404-8 0 2610 9409 119 Phasi Charoen 0 2869 7462-6 0 2869 7128 159 Siam Square 0 2658 1755-9 0 2658 1754 120 Phat Phong 0 2637 0041-8 0 2637 0477 160 Siangkong 0 2639 4041-5 0 2237 4990 121 Phat Phong 2 0 2634 3072-5 0 2634 3069 161 Silom Main 0 2232 5001 0 2234 7445 Annual Report 2011 324 KASIKORNBANKGROUP

No. Branch Tel. Fax No. Branch Tel. Fax 162 Silom Soi 1 0 2233 0721-5 0 2233 0726 196 Talat Min Buri 0 2540 7972-4 0 2540 8146 (Zuellig House Building) 197 Talat Phattanakan 0 2321 7426-7 0 2321 7425 163 Silom Soi 22 0 2235 2540-4 0 2235 2545 198 Talat Phlu 0 2891 4022-9 0 2891 4278 164 Siriraj 0 2411 0232-4 0 2411 0520 199 Talat Wongsakon Sai Mai 0 2563 4357-61 0 2563 4362 165 Siriraj Hospital 0 2418 4124-5 0 2418 4245 200 Talat Ying Charoen 0 2521 4354-5 0 2521 4361 166 Soi Chalaem Nimit 0 2688 4250-4 0 2291 1079 201 Taopoon 0 2911 3126-8 0 2911 3129 (Pha Du 1) 202 Tesco Lotus Bang Khae 0 2454 8304-8 0 2454 8309 167 Soi Charoen Rat 7 0 2291 9280-1 0 2291 9812 203 Tesco Lotus Lat Phrao 0 2939 3682-4 0 2939 3265 168 Soi Charurat 0 2651 7093-8 0 2253 3537 204 Tesco Lotus Min Buri 0 2540 2740 0 2540 2772 169 Soi Khubon 0 2509 2169-70 0 2509 2680 205 Tesco Lotus Pin Klao 0 2433 2530-3 0 2433 2543 170 Soi Udomsuk 0 2361 7666-7 0 2361 7668 206 Tesco Lotus Pracha Chuen 0 2587 2010-4 0 2587 2015 171 Soi Viphavadi Rangsit 2 0 2276 8511-3 0 2276 8725 207 Tesco Lotus Rama I 0 2219 1836-40 0 2219 1842 (Ho Kankha) 208 Tesco Lotus Rama II 0 2415 4514-8 0 2415 4510 172 Soi Watcharaphon 0 2509 0013-4 0 2509 0019 209 Tesco Lotus Rama III 0 2294 3703-4 0 2294 3712 173 Somdech Phra Debaratana 0 2354 3226-7 0 2354 3791 210 Tesco Lotus Sukhaphiban 3 0 2916 6743-4 0 2916 6881 Madical Center 211 Tha Phra 0 2868 0125-35 0 2457 8812 (Ramathibodi Hospital) 212 Tha Rua Sathu Pradit 0 2295 0123-5 0 2294 6661 174 Song Prapha-Don Muang 0 2566 4345-6 0 2566 4347 213 Thai Airways International 0 2513 6243-6 0 2513 6982 175 Southern Bus Terminal 0 2894 6020-4 0 2894 6025 214 Thammasat University 0 2226 0536-7 0 2226 0643 Phuttha Monthon Sai 1 Tha Phra Chan 176 Suan Chatuchak 0 2617 6040-7 0 2272 0857 215 Thanam Ratchawong 0 2224 5490-1 0 2224 9244 177 Suan Chatuchak Weekend 0 2272 4790-3 0 2272 4802 216 Thanon Asok Din Daeng 0 2641 8660-2 0 2247 7552 Market 217 Thanon Bang Khunthian- 0 2416 6184-5 0 2416 6362 178 Suan Mali 0 2224 5970-1 0 2224 6173 Chaythale 179 Suan Phlu 0 2679 4246-53 0 2213 1362 218 Thanon Bang Na-Trat Km. 4 0 2397 3570-2 0 2397 3568 180 Sukhaphiban 1 (Bang Bon) 0 2454 4331-2 0 2454 4333 219 Thanon Chan 0 2212 9788-9 0 2673 0438 181 Sukhumvit 1 (Bumrungrad) 0 2255 2324-8 0 2255 2329 220 Thanon Charoen Nakorn 36 0 2862 7920-2 0 2862 7924 182 Sukhumvit 101 0 2741 7661-5 0 2741 8352 221 Thanon Charoen Rat 0 2437 0256-8 0 2437 0259 183 Sukhumvit 11 0 2253 8623-4 0 2255 8600 222 Thanon Convent 0 2233 8601-5 0 2233 8606 184 Sukhumvit 15 0 2253 7381-5 0 2253 7386 (Liberty Square) 185 Sukhumvit 18 0 2261 4054-8 0 2261 4059 223 Thanon Ekkachai-Bang Bon 0 2453 0562-3 0 2453 0702 (Exchange Tower) 224 Thanon Khao San 0 2280 5904-8 0 2280 5909 186 Sukhumvit 21 0 2260 0112-6 0 2260 0117 225 Thanon Lan Luang 0 2628 1391-6 0 2628 1406 (Serm Mit Tower Building) 226 Thanon Lang Suan 0 2652 0240-2 0 2652 1987 187 Sukhumvit 23 0 2261 4060-4 0 2261 4065 227 Thanon Lat Ya 0 2861 4415-25 0 2438 0538 (Interchange Building) 228 Thanon Maha Chai 0 2621 0764-6 0 2226 4805 188 Sukhumvit 33 (Bang Kapi) 0 2261 0151-7 0 2261 0164 229 Thanon Mangkon 0 2224 5070-1 0 2224 5178 189 Sukhumvit 57 0 2714 1089-93 0 2390 0784 230 Thanon Narathiwat 0 2237 9858-62 0 2237 9863 190 Sukhumvit 6 0 2255 1861-5 0 2255 1866 Rat Nakharin (Two Pacific Place Building) 231 Thanon Nawamin 36 0 2374 0269-72 0 2375 0986 191 Sukhumvit 71 0 2392 5012-6 0 2392 5017 232 Thanon Nuan Chan 0 2363 8949-53 0 2363 8954 192 Suntowers Building 0 2273 8186-90 0 2273 8191 233 Thanon Padiphat 0 2618 4168-70 0 2618 6042 193 Surawong 0 2639 4056-60 0 2639 0927 234 Thanon Phanit Chayakan 0 2865 7364-5 0 2865 7367 194 Sutthisan 0 2616 9990-5 0 2616 9997 Thonburi 195 Suwinthawong Nong Chok 0 2988 0680-5 0 2988 0692 235 Thanon Phattanakan 20 0 2717 8870-3 0 2319 8352 Annual Report 2011 KASIKORNBANKGROUP 325

No. Branch Tel. Fax No. Branch Tel. Fax 236 Thanon Phetchaburi 17 0 2255 5320-4 0 2255 5325 274 Union Mall Lat Phrao 0 2511 1227-8 0 2511 1342 237 Thanon Phetchaburi Tat Mai 0 2318 4700-1 0 2716 5209 275 United Center 0 2232 5305-7 0 2232 5308 238 Thanon Phetchaburi Tat Mai 0 2369 1834-8 0 2369 1839 276 Urban Square 0 2591 0677 0 2591 0921 (Italthai Tower) (Pracha Chuen 12) 239 Thanon Pracha Chuen 0 2586 9352-3 0 2586 0757 277 Victory Monument 0 2245 8140-1 0 2644 6881 240 Thanon Pracha Uthit 0 2428 7390-2 0 2428 3987 278 Wang Burapha 0 2623 7681-90 0 2225 0344 241 Thanon Ram Intra 0 2552 3060-2 0 2971 6515 279 Wat Sai 0 2893 6285-93 0 2416 5371 242 Thanon Rama II 0 2894 0274-7 0 2416 5554 280 Wong Sawang Town Center 0 2586 7624-7 0 2586 9821 243 Thanon Rama III 0 2683 4250-3 0 2683 4264 281 Wong Waen Rob Nok 0 2899 6930-9 0 2416 0356 244 Thanon Rama IX 0 2719 6809-16 0 2318 4820 (Ekkachai-Bang Bon) 245 Thanon Ramkhamhaeng 0 2314 1871-2 0 2314 1873 282 Wong Wian 22 Karakada 0 2623 0030-2 0 2224 9860 246 Thanon Ramkhamhaeng 151 0 2373 0981-3 0 2373 0985 283 Worachak 0 2621 0244-7 0 2621 0064 247 Thanon Ramkhamhaeng 53 0 2374 0756-7 0 2375 9239 284 Yan Nawa 0 2675 5120-7 0 2212 3281 248 Thanon Rang Nam 0 2642 4611-6 0 2640 0128 285 Yaowarat 0 2623 0016-9 0 2226 4806 249 Thanon Ratchada Phisek 0 2264 0213-6 0 2264 0221 286 Yotse 0 2224 6075-6 0 2224 4819 (Sukhumvit-Rama IV) 250 Thanon Ratchada Phisek 0 2476 8856-8 0 2476 8862 (Taksin-Tha Phra) 530 Upcountry Branches 251 Thanon Ratchada Phisek 0 2693 2460-9 0 2693 2472 Central 178 Branches Huai Khwang 252 Thanon Sathon 0 2633 8013-6 0 2633 8018 No. Branch Tel. Fax 253 Thanon Sathu Pradit 0 2674 0164-70 0 2212 2900 Ang Thong 254 Thanon Serithai 46 0 2518 2040-1 0 2518 2043 1 Ang Thong 0 3561 1306-7 0 3561 1346 (Suan Siam) 2 Pa Mok 0 3566 1235-6 0 3566 1237 255 Thanon Sirinthon 0 2881 9818 0 2423 0918 3 Wiset Chai Chan 0 3563 1242 0 3563 1262 256 Thanon Sri Nakharin Km. 9 0 2393 5850-4 0 2361 7236 Chai Nat 257 Thanon Sua Pa Main 0 2221 3131-8 0 2225 6573 4 Chai Nat 0 5641 1264 0 5641 1331 258 Thanon Suan Phak 0 2448 5321-5 0 2448 5326 5 Hankha 0 5645 1373-5 0 5645 1378 259 Thanon Suk Sawat 0 2877 0350-5 0 2877 1090 6 Sankhaburi 0 5648 1362-3 0 5648 1004 260 Thanon Sukhumvit 55 0 2178 0904-8 0 2178 0909 7 Wat Sing 0 5646 1080-3 0 5646 1085 (Soi Thong Lo 20) 261 Thanon Sukhumvit 55 0 2712 8770-2 0 2390 0457 Kanchanaburi (Soi Thong Lo 9) 8 Kanchanaburi 0 3451 1203 0 3451 2382 262 Thanon Witthayu 0 2252 2177-9 0 2252 2055 9 Tha Muang Kanchanaburi 0 3461 3081-5 0 3461 3086 263 Thanon Wutthakat 0 2875 4536 0 2875 4535 10 Tha Rua 0 3463 6859-60 0 3456 1994 264 The Avenue Ratchayothin 0 2512 6013-6 0 2512 6148 Lop Buri 265 The Mall Bang Kapi 0 2374 4261-3 0 2374 7298 11 Ban Mi 0 3662 8729-32 0 3647 1675 266 The Mall Bang Khae 0 2454 9023-6 0 2454 9027 12 Big-C Lop Buri 0 3661 5762-3 0 3661 6113 267 The Mall Tha Phra 0 2477 7343-7 0 2477 7348 13 Khok Samrong 0 3644 1117 0 3644 1581 268 The Market Bang Pho 0 2586 7288 0 2586 7657 14 Lam Narai 0 3646 1151-2 0 3646 1153 269 Thewet 0 2281 4182-3 0 2628 5050 15 Nong Muang 0 3664 8452-6 0 3643 1103 270 Thiam Ruam Mit 0 2274 4200 0 2274 4203 16 Thanon Surasongkhram 0 3661 7280 0 3641 3761 271 Thon Buri 0 2861 4357-64 0 2438 9921 Lop Buri 272 Thung Kru 0 2873 5140-1 0 2873 5144 17 Wong Wian Sa Kaeo 0 3661 3770-1 0 3641 3733 273 Tops Market Place Silom 0 2101 0214-8 0 2101 0219 Lop Buri Annual Report 2011 326 KASIKORNBANKGROUP

No. Branch Tel. Fax No. Branch Tel. Fax Nakhon Nayok 54 Thanon Chaeng Watthana 0 2982 9760-5 0 2982 9934 18 Nakhon Nayok 0 3732 1159-64 0 3731 1854 55 Thanon Kanchanaphisek 0 2595 0401-3 0 2595 0790 19 Ongkharak 0 3739 1486-90 0 3739 1492 Bang Yai 56 Thanon Ngam Wong Wan 0 2591 7895-7 0 2589 5091 Nakhon Pathom 57 Thanon Ratchaphruek 0 2195 2039-40 0 2195 2160 20 Big-C Om Yai 0 2431 1919-21 0 2431 1931 (PTT Pradapdao) 21 Huai Phlu 0 3423 9662-4 0 3438 9121 58 Thanon Rattanathibet 0 2921 1145-56 0 2594 0626 22 Nakhon Pathom 0 3425 3822-9 0 3425 2510 Bang Yai 23 Om Yai 0 2420 5561-5 0 2420 8607 59 Thanon Samakkhi 0 2573 6191 0 2573 8542 24 Salaya 0 2441 5421-5 0 2441 5426 60 Thanon Tiwanon (Khae Rai) 0 2589 0030-3 0 2580 2838 25 Sam Phran 0 3422 5649-51 0 3432 2990 61 The Mall Ngam Wong Wan 0 2550 0790 0 2550 0799 26 Talat Ong Phra Pathom 0 3427 3469-71 0 3427 3209 62 The Square Bang Yai 0 2195 0100-4 0 2195 0105 Chedi 63 Tiwanon 8 0 2965 9070-8 0 2965 9086 27 Talat Pathom Mongkhon 0 3425 6627-8 0 3425 3554 Pathum Thani Nakhon Pathom 28 Tesco Lotus Nakhon Chaisi 0 3433 2260-4 0 3433 2265 64 Big-C Lam Luk Ka 0 2152 7182-6 0 2152 7187 29 Tesco Lotus 0 3425 2227-8 0 3425 2337 65 Big-C Nava Nakorn 0 2520 4250-3 0 2520 4209 Nakhon Pathom 66 Big-C Rangsit 2 0 2995 1015-6 0 2995 1017 30 Tesco Lotus Salaya 0 2482 2400-4 0 2482 2405 (Talat Si Mum Muang) 31 Tesco Lotus Samphran 0 3431 2134-8 0 3431 2139 67 Big-C Rangsit Khlong 3 0 2592 2901-5 0 2592 2906 32 Thanon Phetkasem 0 3423 0513-6 0 3423 0517 68 Big-C Rangsit Khlong 6 0 2577 0051-3 0 2577 2888 Nakhon Chaisi 69 Future Park Rangsit 0 2958 0971-2 0 2958 0974 33 Thanon Phetkasem 0 3421 3387-9 0 3421 3390 70 Future Park Rangsit 2 0 2958 6160-4 0 2958 6165 Nakhon Pathom 71 Khlong 2 Thanyaburi 0 2996 0262-3 0 2996 0181 72 Khlong 6 Thanyaburi 0 2577 2360-3 0 2577 2366 Nonthaburi 73 Khlong Luang 0 2516 2130-1 0 2516 2998 34 Bang Bua Thong 0 2571 5214-8 0 2571 5219 74 Lat Lum Kaeo 0 2979 3434 0 2979 3131 35 Bang Kruai 0 2879 3060-6 0 2447 0696 75 Lotus Lam Luk Ka (Khlong 2) 0 2191 1581-5 0 2191 1586 36 Big-C Bang Yai 0 2926 3235-8 0 2926 3259 76 Lotus Lam Luk Ka (Khlong 6) 0 2569 1403-5 0 2569 1388 37 Big-C Chaeng Watthana 2 0 2582 1162-4 0 2582 1229 77 Lotus Rangsit 0 2567 4536-8 0 2567 4916 (Yaek Pak Kret) 78 Lotus Rangsit Khlong 7 0 2577 2401-4 0 2577 3888 38 Central Chaeng Watthana 0 2193 8065-9 0 2193 8070 79 Nava Nakorn 0 2909 1123-5 0 2529 2904 39 Central Rattanathibet 0 2969 8085-90 0 2969 8091 80 Nava Nakorn 2 0 2529 1077 0 2529 1859 40 Chaeng Watthana 0 2562 8001-7 0 2562 8015 81 Pathum Thani 0 2978 0112-8 0 2581 1773 Muang Thong Thani Main 82 Rangsit 0 2959 0001-10 0 2531 4124 41 Esplanade Rattanathibet 0 2589 5823-6 0 2589 9705 83 Talat AC Lam Luk Ka 0 2569 3513-7 0 2569 3518 42 Homeworks Ratchaphruek 0 2447 6740-3 0 2447 6744 (Khlong 4) 43 Lotus Nichada Thani 0 2582 8120-4 0 2582 8125 84 Talat Si Mum Muang- 0 2536 7176-9 0 2536 7171 44 Lotus Rattanathibet 0 2591 0199 0 2591 0525 Rangsit 45 Lotus Wat Ladpladuk 0 2194 5054-8 0 2194 5059 85 Talat Thai 0 2529 5697 0 2529 5550 46 Muang Thong Thani 0 2980 6055-9 0 2980 6060 86 Thanon Bang Khan- 0 2901 6951-3 0 2901 6973 47 Nonthaburi 0 2967 4023-30 0 2967 2006 Khlong Luang 48 Pak Kret 0 2960 8940-5 0 2583 8919 87 Zeer Rangsit 0 2992 6112-4 0 2992 6117 49 Pantip Ngam Wong Wan 0 2953 6047-9 0 2953 6073 50 Saphan Nonthaburi 0 2584 5034-5 0 2584 5383 Phetchaburi 51 Talat Amphoe Bang Kruai 0 2883 6218-9 0 2883 6222 88 Ban Laem 0 3245 0692-4 0 3248 1118 52 Talat Chao Phraya Bang Yai 0 2595 1261-3 0 2595 1264 89 Cha-Am 0 3243 3894-6 0 3247 1409 53 Thanam Nonthaburi 0 2526 9183-4 0 2526 9508 90 Phetchaburi 0 3242 6111-3 0 3242 6245 Annual Report 2011 KASIKORNBANKGROUP 327

No. Branch Tel. Fax No. Branch Tel. Fax 91 Phetphaibun Plaza 0 3240 2990-3 0 3240 2994 126 Home Pro Bang Na 0 2316 4849-52 0 2316 4856 Phetchaburi 127 Imperial World Samrong 0 2183 0732-6 0 2183 0737 92 Tha Yang 0 3246 1444 0 3246 1222 128 Khlong Dan 0 2330 1133-5 0 2330 1136 Phra Nakhon Si Ayutthaya 129 Lotus Sri Nakharin 0 2175 7812-5 0 2175 7818 130 Phra Pradaeng 0 2818 0990-3 0 2463 1976 93 Ayutthaya 0 3525 2260-2 0 3525 2256 131 Phra Samut Chedi 0 2819 7747-50 0 2819 7967 94 Big-C Ayutthaya 0 3574 7139-43 0 3574 7144 132 Pu Chao Saming Phrai 0 2754 3348-52 0 2754 5531 95 Hi-Tech Industrial Estate 0 3535 1685-9 0 3535 1690 133 Samrong (Pu Chao Center) 0 2757 8963-8 0 2384 3413 Ayutthaya 134 Samut Prakan 0 2395 3000-2 0 2701 7805 96 Lotus Ayutthaya 0 3534 5324 0 3534 5160 135 Sukhumvit 107 0 2398 5849-53 0 2398 5884 97 Phak Hai 0 3523 9324-5 0 3539 1298 136 Suvarnabhumi Airport 0 2134 1906-10 0 2134 1911 98 Pratu Nam Phra In 0 3521 9524-7 0 3536 1123 137 Talat Bang Bo 0 2708 4056-7 0 2338 1188 99 Rojana Industrial Park 0 3533 2281-5 0 3533 2286 138 Talat Bang Pu 0 2324 3046-50 0 2324 3051 100 Rojana Industrial Park 2 0 3574 6974-8 0 3574 6979 Industrial Estate 101 Sena 0 3521 7332-4 0 3520 1551 139 Talat Nam Daeng 0 2754 7160-1 0 2754 7844 102 Talat Bang Pa-in 0 3522 1954-5 0 3522 1849 140 Talat Samut Prakan 0 2387 0995 0 2387 1794 Industrial Estate 141 Thanon Bang Na-Trat 0 2740 6611-8 0 2740 6623 103 Thanon Rojana Ayutthaya 0 3521 3870-2 0 3521 3875 Km.18 104 Wang Noi 0 3521 5286-8 0 3521 5289 142 Thanon King Kaeo 0 2738 8025-6 0 2738 8216 Samut Prakan Prachuap Khiri Khan 143 Thanon Sri Nakharin Km.15 0 2385 7901-2 0 2385 7149 105 Bang Saphan 0 3254 8435-7 0 3269 1249 144 Thanon Sri Nakharin Km.17 0 2385 6968-71 0 2385 6977 106 Hua Hin 0 3251 1775-6 0 3251 2585 145 Thanon Thepharak 0 2758 2403-5 0 2394 6966 107 Hua Hin Market Village 0 3252 6290-4 0 3252 6295 146 Yes Bang Phli 0 2705 1728-9 0 2705 4130 108 Prachuap Khiri Khan 0 3255 0933-5 0 3261 1101 109 Pran Buri 0 3262 1992-3 0 3262 1942 Samut Sakhon 110 Sam Roi Yot 0 3268 8551-2 0 3268 8553 147 Ban Phaeo Lak Sam 0 3485 0597-9 0 3448 1463 111 Talat Chatchai Hua Hin 0 3252 1044-6 0 3252 1275 148 Big-C Mahachai 0 3444 2860-4 0 3444 2865 112 Thap Sakae 0 3254 6686-8 0 3267 1212 149 Krathum Baen 0 3447 2006-7 0 3447 9503 Ratchaburi Samut Sakhon 150 Om Noi 0 2420 1571 0 2420 2364 113 Ban Pong 0 3234 4679-80 0 3220 1193 151 Phanthai Norasing 0 3445 8503-7 0 3445 8508 114 Big-C Ratchaburi 0 3231 7313-5 0 3231 6760 Samut Sakhon 115 Damnoen Saduak 0 3224 5160-4 0 3224 5165 152 Phutta Monthon Sai 4 0 2813 1701-7 0 2420 9978 116 Ratchaburi 0 3231 4054-5 0 3232 5834 153 Samut Sakhon 0 3481 1087-91 0 3442 3013 117 Tesco Lotus Ban Pong 0 3220 1585-7 0 3220 1718 154 Talat Samut Sakhon 0 3481 1100-1 0 3442 7137 118 Thanon Sri Suriyawong 0 3231 0630-3 0 3231 0634 155 Tesco Lotus Krathum Baen 0 3447 2012-3 0 3447 3044 Ratchaburi 156 Tesco Lotus Mahachai 0 3482 7396-7 0 3482 7799 157 Thanon Ekkachai 0 3442 5605-7 0 3442 5667 Samut Prakan Samut Sakhon 119 Bang Bo 0 2338 1184-6 0 2338 1113 158 Thanon Ekkachai-Photchae 0 3449 4551-4 0 3449 5002 120 Bang Khru 0 2463 6314-6 0 2463 4549 159 Thanon Rama II 0 3442 8751-5 0 3442 8756 121 Bang Mek Khao 0 2703 8524-31 0 2387 2779 Samut Sakhon 122 Bang Phli 0 2751 0650-4 0 2316 7827 160 Thanon Setthakit 1 0 3481 6662-5 0 3481 6671 123 Big-C Samut Prakan 0 2395 5027-9 0 2395 2452 Samut Sakhon 124 Big-C Suksawat 0 2464 4281-5 0 2464 4284 125 Customs Free Zone 0 2134 1916-9 0 2134 1905 Samut Songkhram Suvarnabhumi 161 Samut Songkhram 0 3471 1522-3 0 3471 2433 Annual Report 2011 328 KASIKORNBANKGROUP

No. Branch Tel. Fax No. Branch Tel. Fax Saraburi 13 Mae Chaem 0 5348 5124-5 0 5382 8192 162 Kaeng Khoi Saraburi 0 3624 5429-33 0 3624 5434 14 Mae Rim Chiang Mai 0 5329 8171-5 0 5329 8176 163 Nong Khae 0 3632 6281-5 0 3632 6290 15 Mi Chok Plaza 0 5323 0351-5 0 5323 0356 164 Phra Phutthabat 0 3626 6716-7 0 3626 6998 (Thanon Chiang Mai-Mae Jo) 165 Saraburi 0 3622 0414-8 0 3622 0422 16 Night Bazaar 0 5327 3487 0 5327 3552 166 Tesco Lotus Saraburi 0 3621 4361-5 0 3621 4433 17 Sam Yaek San Sai 0 5349 1822 0 5349 1821 18 San Pa Tong 0 5382 3503-4 0 5331 1113 167 Thanon Sutbanthad Saraburi 0 3622 1132-3 0 3622 1941 19 Saraphi 0 5342 3248-50 0 5332 1591 Sing Buri 20 Si Yaek Sanambin 0 5320 2529-37 0 5327 0825 168 In Buri 0 3653 3519-21 0 3658 1722 Chiang Mai 169 Sing Buri 0 3652 0035-7 0 3651 1308 21 Talat Pratu Chiang Mai 0 5381 4196 0 5381 4556 170 Talat Channasut 0 3659 1478 0 3659 1479 22 Talat Warorot 0 5325 2960 0 5325 2961 Bang Rachan 23 Thanon Chang Klan 0 5328 1850-3 0 5328 1859 171 Tha Chang 0 3653 6265-6 0 3659 5237 Chiang Mai Suphan Buri 24 Thanon Charoen Muang 0 5324 2855 0 5324 2901 172 Dan Chang 0 3559 5013 0 3559 5252 Chiang Mai 173 Doembang Nangbuat 0 3557 8011 0 3557 8099 25 Thanon Moon Muang 0 5321 8210-3 0 5321 8217 174 Sam Chuk Suphan Buri 0 3557 2184-8 0 3557 2189 Chiang Mai 175 Song Phi Nong 0 3553 1943-4 0 3553 1092 26 Thanon Nimmanhemin 0 5335 7650-4 0 5335 7655 176 Suphan Buri 0 3551 1522-3 0 3552 2155 Chiang Mai 177 Thanon Malaiman 0 3552 4044-6 0 3552 4047 27 Thanon Ratchawong 0 5325 1852-3 0 5323 3918 Suphan Buri Chiang Mai 178 U Thong 0 3540 4202-4 0 3555 1405 28 Thanon Si Don Chai 0 5328 2085-6 0 5327 9026 Chiang Mai 29 Thanon Suthep Chiang Mai 0 5380 8514-6 0 5380 8523 North 94 Branches 30 Thanon Tha Phae 0 5327 0151-8 0 5328 2679 Chiang Mai No. Branch Tel. Fax Chiang Rai Chiang Mai 31 Central Plaza Chiang Rai 0 5317 9801-5 0 5317 9806 1 Big-C Chiang Mai 0 5324 9733-5 0 5324 9857 32 Chiang Khong 0 5365 5393-4 0 5379 1112 (Don Chan) 33 Chiang Rai 0 5375 2226-9 0 5371 4003 2 Big-C Chiang Mai 2 0 5324 0482-3 0 5324 0484 34 Ha Yaek Po Khun Mengrai 0 5374 8311-3 0 5374 8314 (Yaek San Dek) 35 Huai Khrai Mae Chan 0 5376 3003-4 0 5376 3004 3 Big-C Hang Dong 0 5344 7822-6 0 5344 7827 36 Mae Chan 0 5377 1230-2 0 5377 1054 4 Bo Sang 0 5338 6850-1 0 5333 9036 37 Mae Sai 0 5364 0786-90 0 5373 3101 5 Central Plaza Chiang Mai 0 5390 3607-8 0 5390 3612 38 Mae Sai 2 0 5373 2435-6 0 5373 2223 Airport 39 Pa Daet 0 5365 4282-4 0 5376 1011 6 Central Plaza Chiang Mai 0 5390 4102-6 0 5390 4107 40 Phan Chiang Rai 0 5372 2818-9 0 5372 2789 Airport 2 41 Thanon Super Highway 0 5375 4144-5 0 5371 7489 7 Chang Phuak Chiang Mai 0 5321 1672 0 5321 2013 Chiang Rai 8 Chiang Mai University 0 5322 3371-3 0 5322 3506 9 Chom Thong 0 5334 1181-2 0 5334 1180 Kamphaeng Phet 10 Fang 0 5345 1111-3 0 5345 1114 42 Kamphaeng Phet 0 5571 1244 0 5571 3702 11 Hang Dong Chiang Mai 0 5344 2871-2 0 5344 2951 43 Khlong Khlung 0 5572 4383-6 0 5572 4390 12 Lotus Kham Thiang 0 5322 7356-60 0 5322 7369 44 Khlong Lan 0 5573 5250 0 5578 6233 Chiang Mai Kamphaeng Phet Annual Report 2011 KASIKORNBANKGROUP 329

No. Branch Tel. Fax No. Branch Tel. Fax Lampang Phichit 45 Big-C Lampang 0 5432 4554 0 5432 5244 75 Bang Mun Nak 0 5666 0758-60 0 5663 1278 46 Thanon Chatchai Lampang 0 5422 4830-1 0 5422 1994 76 Phichit 0 5661 1221 0 5661 2178 47 Thanon Rob Wiang 0 5432 3501-4 0 5422 7676 77 Taphan Hin 0 5662 1388 0 5662 1488 Lampang 78 Thap Khlo 0 5664 1237-8 0 5665 4430 Lamphun Phitsanulok 48 Big-C Lamphun 0 5357 5512-4 0 5357 5616 79 Central Plaza Phitsanulok 0 5533 8519-23 0 5533 8524 49 Lamphun 0 5356 1115-7 0 5356 1118 80 Ha Yaek Khok Matum 0 5521 1730-1 0 5524 1984 50 Lamphun Industrial Estate 0 5358 1376-7 0 5358 2304 81 Naresuan University 0 5522 7064-5 0 5522 7355 51 Li 0 5397 9777-8 0 5397 9779 82 Nong Tom 0 5536 6000-1 0 5536 6002 52 Pa Sang 0 5355 7264-8 0 5352 0227 83 Phitsanulok 0 5524 1497-9 0 5524 1744 84 Thanon Borom Trai 0 5524 8802-3 0 5524 8819 Mae Hong Son Lokkanat Phitsanulok 53 Mae Hong Son 0 5362 0337-9 0 5361 1557 Phrae 54 Pai 0 5369 9119 0 5369 9285 85 Phrae 0 5462 7230-2 0 5452 1483 Nakhon Sawan Sukhothai 55 Big-C Nakhon Sawan 0 5623 3241-5 0 5623 3141 86 Sawankhalok 0 5562 3651-3 0 5564 1392 (V-Square) 87 Sukhothai 0 5561 1101-2 0 5561 2887 56 Lat Yao 0 5631 7640-2 0 5627 1438 57 Nong Bua 0 5632 3396-7 0 5625 1053 Tak 58 Takhli 0 5626 1520-1 0 5626 1972 88 Mae Sot 0 5554 4824-8 0 5553 2738 59 Tha Tako 0 5636 0636-8 0 5624 9330 89 Tak 0 5554 0609-11 0 5551 1188 60 Thanon Kosi 0 5631 2885-8 0 5622 5202 Uthai Thani Nakhon Sawan 90 Lan Sak 0 5652 2313-5 0 5653 7003 61 Thanon Sai Asia 0 5622 9120-1 0 5622 9122 91 Nong Chang 0 5653 1037-8 0 5653 1190 Nakhon Sawan 92 Uthai Thani 0 5651 1414-5 0 5651 1962 62 Thanon Sawanwithi 0 5631 1500-5 0 5622 1581 Nakhon Sawan Uttaradit Nan 93 Lotus Uttaradit 0 5540 9695-6 0 5540 9713 94 Uttaradit 0 5544 1829-31 0 5541 2082 63 Nan 0 5471 0162 0 5471 0566 64 Pua 0 5479 1106-7 0 5479 1108 Northeast 85 Branches Phayao No. Branch Tel. Fax 65 Chiang Kham 0 5441 6340-3 0 5445 1432 Amnat Charoen 66 Chun 0 5442 0186-7 0 5445 9033 67 Phayao 0 5441 2209-16 0 5443 1774 1 Amnat Charoen 0 4527 0803-4 0 4551 1560 68 Si Yaek Mae Tam Phayao 0 5441 2526-9 0 5441 2530 Bung Kan Phetchabun 2 Bung Kan 0 4249 1667-9 0 4249 1666 69 Dong Khui 0 5676 9223-5 0 5676 9226 3 Pak Khat 0 4240 4260-4 0 4248 0016 70 Lom Sak 0 5674 6048-9 0 5670 1119 Buri Ram 71 Phetchabun 0 5672 2262-3 0 5671 1163 4 Buri Ram 0 4461 1056 0 4461 2590 72 Sap Samo Thot 0 5673 1168 0 5673 1169 5 Nang Rong 0 4462 4466-8 0 4463 1863 73 Talat Huai Phai 0 5675 0045-8 0 5675 0050 6 Prakhon Chai 0 4465 2008-10 0 4467 1483 74 Tesco Lotus Phetchabun 0 5672 6033-7 0 5672 6022 7 Satuk 0 4462 7407-9 0 4468 1325 Annual Report 2011 330 KASIKORNBANKGROUP

No. Branch Tel. Fax No. Branch Tel. Fax Chaiyaphum 38 Khon Buri 0 4444 8011-2 0 4444 8012 8 Chaiyaphum 0 4483 8015-7 0 4481 1267 39 Lotus Pak Chong 0 4432 8744-7 0 4432 8866 9 Kaeng Khro 0 4488 2754 0 4488 2758 40 Pak Chong 0 4428 0383-6 0 4431 1387 10 Phu Khieo 0 4484 4900-2 0 4486 1498 41 Pak Thong Chai 0 4428 3970-1 0 4444 1433 11 Thep Sathit 0 4485 7005 0 4485 7131 42 Phimai 0 4428 7403-6 0 4447 1394 43 Sam Yaek Pak Thong Chai 0 4421 3542-3 0 4421 3541 Kalasin Nakhon Ratchasima 12 Kalasin 0 4381 1024 0 4381 1497 44 Si Khiu Nakhon Ratchasima 0 4441 3202-6 0 4441 3207 Khon Kaen 45 Soeng Sang 0 4444 7150-4 0 4444 7079 46 Thanon Chomphon 0 4424 2526 0 4425 3225 13 Ban Phai 0 4327 2433-4 0 4327 2435 Nakhon Ratchasima 14 Big-C Khon Kean 0 4322 7187-91 0 4322 7192 47 Thanon Chomsurangyat 0 4425 1041-5 0 4425 1046 15 Central Plaza Khon Kaen 0 4328 8060-4 0 4328 8065 Nakhon Ratchasima 16 Chum Phae 0 4331 1027 0 4331 1007 48 Thanon Mittraphap 0 4426 8239-42 0 4425 1367 17 Khon Kaen University 0 4320 4434-8 0 4320 4439 Nakhon Ratchasima 18 Kranuan 0 4325 1276 0 4325 1683 49 The Mall 0 4428 8490-2 0 4428 8493 19 Lotus Khon Kaen 0 4347 2621-5 0 4347 2626 20 Muang Phon 0 4341 4132 0 4341 4138 Nakhon Ratchasima 21 Thanon Kasikon 0 4324 1901-5 0 4324 1908 50 Wang Nam Khieo 0 4422 8023-5 0 4422 8026 Thung Sang Khon Kaen Nong Bua Lamphu 22 Thanon Mittraphap 0 4332 5519-24 0 4332 5442 51 Nong Bua Lum Phu 0 4236 0843-7 0 4236 0852 Khon Kaen 52 Si Bun Ruang 0 4235 3910-1 0 4235 3912 23 Thanon Na Muang Khon Kaen 0 4322 5131-3 0 4322 5069 Nong Khai 24 Thanon Pracha Samoson 0 4333 3761-7 0 4323 7709 Khon Kaen 53 Big Jieng Nong Khai 0 4242 3250-1 0 4242 3306 54 Nong Khai 0 4241 1669-70 0 4241 1058 25 Thanon Sri Chan Khon Kaen 0 4332 6154-5 0 4332 6156 55 Si Chiang Mai Nong Khai 0 4240 6503-5 0 4245 1449 Loei 56 Tha Bo 0 4243 1329-31 0 4243 1332 26 Loei 0 4281 1080 0 4281 1443 Roi Et 27 Wang Saphung 0 4285 0920-2 0 4284 1043 57 Roi Et 0 4352 2790-1 0 4351 2426 Maha Sarakham 58 Thanon Thevaphiban Roi Et 0 4351 3021-2 0 4351 3023 28 Maha Sarakham 0 4374 0920-4 0 4371 1242 Sakon Nakhon 29 Wapi Pathum 0 4379 9375-8 0 4379 9380 59 Phang Khon 0 4273 4928-30 0 4277 1282 Mukdahan 60 Sakon Nakhon 0 4273 3581-2 0 4271 1712 30 Mukdahan 0 4263 1200-5 0 4263 1206 61 Sawang Daen Din 0 4272 1588-90 0 4272 1592 31 Talat Mukdahan 0 4261 1655 0 4261 1620 Si Sa Ket Nakhon Phanom 62 Big-C Si Sa Ket 0 4563 4363-5 0 4563 4497 32 Nakhon Phanom 0 4252 2896-7 0 4251 1411 63 Kantharalak 0 4566 1159 0 4566 1160 33 Si Songkhram 0 4259 9160-2 0 4259 9165 64 Lotus Uthumphon Phisai 0 4569 2310-1 0 4569 2720 34 Tha Uthen 0 4258 1117-8 0 4258 1116 65 Si Sa Ket 0 4562 0708 0 4561 2874 66 Uthumphon Phisai 0 4569 1202-4 0 4569 1440 Nakhon Ratchasima 35 Cho Ho Nakhon Ratchasima 0 4492 8955-9 0 4492 8960 Surin 36 Dan Khun Thot 0 4420 4875-8 0 4420 4874 67 Samrong Thap 0 4456 9098-9 0 4456 9103 37 Hua Tha Le 0 4425 1372-4 0 4425 6394 68 Sangkha 0 4457 1071-3 0 4457 1020 Nakhon Ratchasima 69 Surin 0 4451 1543 0 4451 4416 Annual Report 2011 KASIKORNBANKGROUP 331

No. Branch Tel. Fax No. Branch Tel. Fax Ubon Ratchathani 13 Tha Mai 0 3935 6810-2 0 3943 1547 70 Det Udom 0 4536 1488-9 0 4536 1199 14 Thanon Sri Rong 0 3932 5964-7 0 3932 1172 71 Phibun Mangsahan 0 4520 4817-9 0 4544 1871 Muang Chanthaburi 72 Sunee Tower 0 4547 5921-5 0 4547 5926 15 Thanon Triratana 0 3932 1822-3 0 3932 1824 Ubon Ratchathani Chanthaburi 73 Thanon Chayangkun 0 4526 1598-9 0 4524 2803 Chon Buri Ubon Ratchathani 16 Amata Nakorn Industrial 0 3821 3555-8 0 3821 3560 74 Thanon Phrom Thep 0 4524 3470-3 0 4525 5675 Estate Chon Buri Ubon Ratchathani 17 Amata Nakorn Industrial 0 3845 7596-7 0 3845 7598 75 Warin Chamrap 0 4526 9416-8 0 4526 9415 Estate Chon Buri 2 Udon Thani 18 Ban Bung 0 3844 3097-8 0 3844 3707 76 Ban Dung 0 4227 1097-8 0 4227 1100 19 Bang Phra Chon Buri 0 3835 8259-63 0 3835 8264 77 Central Plaza Udon Thani 0 4234 3906-8 0 4234 3920 20 Big-C Chon Buri 2 0 3838 7910-4 0 3838 7915 78 Kumphawapi 0 4233 1992 0 4233 1993 (Yaek Ang Sila) 79 Nam Som 0 4228 9174-8 0 4228 9179 21 Big-C Pattaya 3 0 3842 7630-2 0 3842 7745 80 Talat Ban Huai Udon Thani 0 4224 6419 0 4224 6274 (Pattaya Klang) B 81 Talat Muang Thong 0 4224 7050-1 0 4224 7044 22 Bo Thong 0 3821 1001-3 0 3821 1005 Charoensri Udon Thani 23 Bo Win Chon Buri 0 3834 6654-5 0 3834 6656 82 Tesco Lotus Nadi 0 4213 0575-9 0 4213 0580 24 Central Center Pattaya 0 3841 5273-6 0 3841 5277 Udon Thani 25 Central Festival 0 3804 3260-4 0 3804 3265 83 Thanon Prajak Udon Thani 0 4224 8570-4 0 4222 2416 Pattaya Beach 84 Udon Thani 0 4224 1121-2 0 4224 3320 26 Central Plaza Chon Buri 0 3805 3616-20 0 3805 3621 Yasothon 27 Don Hua Lo 0 3814 9611-5 0 3814 9616 (Amata Nakorn Chon Buri) 85 Yasothon 0 4571 2592-3 0 4571 2679 28 Harbor Mall Laem Chabang 0 3849 3488-92 0 3849 3582 29 Ko Sichang 0 3821 6131-2 0 3821 6133 East 89 Branches 30 Laem Chabang 0 3849 3624-7 0 3849 3628 31 Laem Thong Bang Saen 0 3815 3900-4 0 3815 3905 No. Branch Tel. Fax 32 Lotus Pattaya Tai 0 3841 2661-2 0 3841 3508 Chachoengsao 33 Noen Plap Wan Chon Buri 0 3840 6305-6 0 3840 6348 34 Nong Mon Chon Buri 0 3839 2601-3 0 3839 2604 1 Bang Khla 0 3854 1847 0 3854 1391 35 Nong Pru 0 3829 2444-8 0 3829 2450 2 Bang Pakong 0 3883 2449-51 0 3853 2815 36 Pattaya Klang 0 3842 5583-8 0 3842 5582 3 Bang Wua 0 3884 1040-2 0 3884 1043 37 Pattaya Tai 0 3842 8513-5 0 3842 7696 4 Big-C Chachoengsao 2 0 3851 2581-2 0 3851 2279 38 Phan Thong Chon Buri 0 3845 2791-5 0 3845 2796 (Thanon Si Sothon) 39 Phanat Nikhom 0 3847 3080-3 0 3847 3085 5 Bus Station Chachoengsao 0 3851 6102-3 0 3881 2087 40 Robinson Si Racha 0 3831 4391-3 0 3832 4368 6 Chachoengsao 0 3881 6296 0 3851 2195 41 Royal Garden Plaza Pattaya 0 3841 6972-4 0 3841 6997 7 Phanom Sarakham 0 3855 1464-5 0 3855 1025 8 Suwinthawong 0 3859 3470-3 0 3859 3475 42 Saha Industrial Park 0 3876 2787-90 0 3876 2791 Chachoengsao Si Racha 9 Talat Khlong Suan 0 3859 5061-2 0 3859 5063 43 Sattahip 0 3873 9351-3 0 3843 7666 44 Si Racha 0 3831 1194-5 0 3832 2476 Chanthaburi 45 Soi Bua Khao Pattaya 0 3841 6989-93 0 3841 6994 10 Khlung 0 3944 1659 0 3944 1367 46 Talat Ko Pho 0 3820 9101-3 0 3820 9104 11 Robinson Chanthaburi 0 3932 8804-8 0 3932 8809 47 Talat Na Klua 0 3836 7867-9 0 3822 5664 12 Soi Dao 0 3938 1384-6 0 3938 1387 48 Talat Rong Po Chon Buri 0 3823 4069-71 0 3823 4457 Annual Report 2011 332 KASIKORNBANKGROUP

No. Branch Tel. Fax No. Branch Tel. Fax 49 Tesco Lotus Amata Nakorn 0 3845 7415-9 0 3845 7420 Sa Kaeo Chon Buri 79 Aranyaprathet 0 3723 1272 0 3723 1072 50 Tesco Lotus Bo Win 0 3811 7048-52 0 3811 7053 80 Khlong Hat 0 3751 2251-4 0 3751 2249 51 Thanon Assumption 0 3833 8455-9 0 3833 8453 81 Sa Kaeo 0 3722 0522-3 0 3724 1022 Si Racha 82 Talat Rong Klua 0 3723 0217-9 0 3722 6079 52 Thanon Chai Hat Pattaya 0 3805 2274-8 0 3805 2279 Aranyaprathet 53 Thanon Chaloem Phrakiat 0 3841 3853-5 0 3841 3874 83 Tesco Lotus Aranyaprathet 0 3754 1618-21 0 3754 1622 Pattaya 84 Wang Nam Yen 0 3725 1002-3 0 3725 1001 54 Thanon Liab Chai 0 3823 6264-8 0 3823 6269 Hat Chomtien Trat 55 Thanon Pattaya-Na Klua 0 3842 0960-2 0 3842 0358 85 Khlong Yai 0 3958 1123-4 0 3958 1255 56 Thanon Phraya Satcha 0 3827 6010-2 0 3827 7854 86 Ko Chang 0 3955 1509-10 0 3955 1508 Chon Buri 87 Laem Ngop 0 3959 7045-6 0 3953 8297 57 Thanon Sai Om Muang 0 3827 1995 0 3879 8993 88 Talat Thetsaban Trat 0 3952 4851-5 0 3952 4856 Chon Buri 89 Trat 0 3952 0569-73 0 3953 2857 58 Thanon Sukhumvit 0 3827 3862-6 0 3827 3867 Chon Buri 1 59 Thanon Sukhumvit 0 3827 2055-7 0 3827 2058 Chon Buri 2 South 84 Branches 60 Thanon Sukhumvit 0 3879 4689-92 0 3879 4593 Chon Buri 3 No. Branch Tel. Fax (Si Yaek Chalerm Thai) Chumphon 61 Thanon Sukhumvit Na Klua 0 3872 7450-2 0 3872 7454 1 Chumphon 0 7750 1418 0 7750 1029 62 Thanon Sukhumvit Pattaya 0 3841 6859-63 0 3841 6864 2 Lang Suan Chumphon 0 7758 1490-2 0 7754 1071 63 Thanon Wachira Prakan 0 3827 3850-5 0 3827 3856 3 Pak Nam Chumphon 0 7752 1013 0 7752 1620 Chon Buri 4 Tha Sae 0 7759 9260-1 0 7759 9262 64 The Avenue Pattaya 0 3805 2240-4 0 3805 2245 Krabi Prachin Buri 5 Ao Nang Krabi 0 7569 5683-7 0 7569 5688 65 Industrial Park 304 0 3741 4537-41 0 3741 4542 6 Krabi 0 7561 1333 0 7563 1465 66 Kabin Buri 0 3728 1879 0 3728 1880 7 Lotus Krabi 0 7565 0902-6 0 7565 0907 67 Prachin Buri 0 3721 1440-1 0 3721 2305 8 Talat Kao Krabi 0 7566 3550-1 0 7566 3512 68 Si Mahosot 0 3727 6509-10 0 3727 6511 Nakhon Si Thammarat Rayong 9 Chandi 0 7548 6490-3 0 7548 6446 69 Amata City Rayong 0 3865 0334-8 0 3865 0339 10 Lotus Nakhon Si Thammarat 0 7532 4964-5 0 7532 4486 Industrial Estate 11 Nakhon Si Thammarat 0 7531 2085-9 0 7534 2891 70 Ban Chang 0 3888 2875-7 0 3860 2577 12 Robinson Nakhon 0 7534 6317-21 0 7534 6322 71 Big-C Rayong 0 3801 1771-5 0 3801 1776 Si Thammarat 72 Eastern Seaboard 0 3865 6494-8 0 3865 6499 13 Sahathai Plaza Thung Song 0 7542 0078-80 0 7541 2828 Industrial Estate Rayong 14 Talat Hua It 0 7534 5771-2 0 7534 5773 73 Klaeng 0 3888 4119-21 0 3867 1360 15 Tha Sala 0 7552 1337-8 0 7552 1336 74 Laem Thong Rayong 0 3861 7084-7 0 3861 7209 16 Thung Song 0 7533 2423-5 0 7541 1798 75 Mab Ta Phut 0 3860 7518-21 0 3860 7525 76 Rayong 0 3861 1007 0 3861 3969 Narathiwat 77 Talat Ban Phe Rayong 0 3889 6026-30 0 3889 6031 17 Narathiwat 0 7351 1360 0 7351 1231 78 Thanon Chantha Udom 0 3861 6002-5 0 3861 6006 18 Rue Soh 0 7357 1186-7 0 7357 1196 Rayong 19 Sungai Kolok 0 7361 1578-9 0 7361 2455 Annual Report 2011 KASIKORNBANKGROUP 333

No. Branch Tel. Fax No. Branch Tel. Fax Pattani 53 Robinson Hat Yai 0 7422 3473-6 0 7422 3509 20 Pa Lat 0 7348 5181 0 7348 5186 54 Songkhla 0 7444 0420-3 0 7432 1071 21 Pattani 0 7331 1518-20 0 7333 1039 55 Thanon Kanchanawanit 0 7455 9159-61 0 7455 9408 Hat Yai Phang Nga 56 Thanon Lop Buri Ramet 0 7421 4450-4 0 7421 4455 22 Khao Lak Phang Nga 0 7648 5380-4 0 7648 5385 Hat Yai 23 Phang Nga 0 7643 0529-30 0 7641 1888 57 Thanon Nakhon Nai 0 7432 1063-4 0 7432 1065 24 Talat Yan Yao 0 7642 1555 0 7642 1389 Songkhla 25 Thai Muang 0 7657 1501 0 7657 1203 58 Thanon Phetkasem Hat Yai 0 7436 6151-2 0 7424 6923 Phatthalung 59 Thanon Ratthakan Hat Yai 0 7423 9119-22 0 7423 9129 60 Thanon Saiburi Songkhla 0 7448 7247-9 0 7431 3322 26 Phatthalung 0 7462 7808-9 0 7461 2214 61 Thanon Si Phuwanat 0 7435 4727-9 0 7423 5770 Phuket Hat Yai 27 Central Festival Phuket 0 7624 9981-3 0 7624 9985 62 Thanon Supphasan 0 7422 0884 0 7424 5233 28 Choeng Talay Phuket 0 7627 1490-3 0 7632 4522 Rangsan Hat Yai 29 Ha Yaek Chalong Phuket 0 7638 1388-9 0 7638 1634 Surat Thani 30 Hat Kamala Phuket 0 7638 6039-43 0 7638 6044 63 Ban Ta Khun 0 7739 7003-4 0 7739 7055 31 Hat Karon Phuket 0 7639 8041-5 0 7639 8055 64 Chai Buri 0 7736 7141-3 0 7736 7150 32 Hat Kata Phuket 0 7633 0573-6 0 7633 0699 65 Chaweng 2 Ko Samui 0 7742 2252 0 7742 2762 33 Hat Patong 0 7634 0447-9 0 7634 0198 34 Jung Ceylon Phuket 0 7636 6060-4 0 7636 6065 66 Chaweng 3 Ko Samui 0 7741 3243 0 7741 4223 35 Lotus Chaofah Phuket 0 7621 6836-7 0 7621 6848 (Living Plaza) 36 Lotus Phuket 0 7661 2794-8 0 7661 2799 67 Chaweng Ko Samui 0 7743 0267-8 0 7743 0494 37 Lotus Rawai Phuket 0 7638 3423-4 0 7638 3701 68 Coliseum Surat Thani 0 7791 0035-9 0 7791 0040 38 Phuket 0 7625 6400-1 0 7621 3561 69 Ko Pha-ngan 0 7737 7848-50 0 7737 7852 39 Samkong Phuket 0 7621 7011-2 0 7621 7450 70 Ko Samui 0 7742 1200-1 0 7742 0141 40 Thalang Phuket 0 7631 1588-90 0 7631 1584 71 Lamai Ko Samui 0 7742 4305-6 0 7742 4619 41 Thanon Na Nai Hat Patong 0 7634 4790-2 0 7634 4927 72 Lotus Surat Thani 0 7791 0056-60 0 7791 0061 42 Thanon Pracha Nukhro 0 7634 1152-3 0 7629 3253 73 Mae Nam Ko Samui 0 7724 8305-9 0 7724 8310 Hat Patong 74 Phunphin 0 7731 1033 0 7731 1000 43 Thanon Thep Krasattri 0 7637 3520-4 0 7637 3525 75 Si Yaek Sang Phet 0 7721 8392 0 7721 9594 Phuket Surat Thani 44 Tilok Center Phuket 0 7621 8068-70 0 7621 8074 76 Surat Thani 0 7727 2200 0 7728 3972 77 Tesco Lotus Lamai 0 7741 8633-5 0 7741 8909 Ranong Ko Samui 45 Ranong 0 7783 2188-9 0 7781 1345 78 Thanon Talat Mai 0 7728 4093-5 0 7728 4096 46 Thanon Saphan Pla Ranong 0 7783 5216-8 0 7783 5219 Surat Thani 79 Wiang Sa 0 7736 1661-3 0 7736 2007 Satun Trang 47 Satun 0 7473 0431-5 0 7472 1358 Songkhla 80 Kantang 0 7523 8100-4 0 7523 8111 81 Thanon Choem Panya 0 7521 9681-2 0 7521 9853 48 Big-C Hat Yai 2 0 7446 9185-9 0 7446 9190 Trang (Thanon Phetkasem) 82 Trang 0 7521 0137-8 0 7521 8200 49 Chong Khao-Mo O Hat Yai 0 7426 2631-4 0 7426 2637 50 Hat Yai Nai 0 7425 7840-2 0 7425 4843 Yala 51 Khlong Ngae 0 7445 2757-61 0 7445 2762 83 Betong 0 7324 5806-7 0 7323 1386 52 Padang Besa 0 7452 1977-8 0 7452 1980 84 Yala 0 7324 0816-8 0 7321 4190 Annual Report 2011 334 KASIKORNBANKGROUP

FOREIGN EXCHANGE BOOTH

26 Bangkok Branches 73 Upcountry Branches No. Foreign Exchange Booth Tel. Fax No. Foreign Exchange Booth Tel. Fax 1 Airport Link Phaya Thai 0 2642 4071 0 2642 4072 Chiang Mai Station 1 Night Bazaar 0 5381 9117-9 0 5327 3552 2 Central World Plaza 0 2251 1393 0 2251 1392 2 Thanon Tha Phae 0 5327 0151-8 0 5328 2679 3 Chatuchak Plaza 0 2265 9502-6 0 2265 9507 Chiang Mai ext. 143 4 City Complex Pratu Nam 0 2253 1196 0 2253 1197 5 Mahboonkrong Center 1 0 2216 4820-2 0 2216 4820-2 Chon Buri ext. 19 ext. 20 3 Big-C Pattaya 3 0 3842 1750 0 3842 1751 6 Mahboonkrong Center 2 0 2611 7104 0 2620 9973 (Pattaya Klang) 7 Money Park 0 2686 3936-7 0 2686 3943 4 Carlton Pattaya Hotel 0 3842 8781 0 3842 8782 Mahboonkrong Center 5 Central Festival 0 3804 3508 0 3804 3509 8 Na-Na Nua 0 2655 0735-40 0 2655 0741 Pattaya Beach ext. 120 6 Chomtien 1 Pattaya 0 3825 2862 0 3825 2863 9 Phat Phong 2 0 2237 1902-6 0 2237 1930 7 Chomtien 2 Pattaya 0 3823 2320 0 3823 2321 10 Platinum Fashion Mall 0 2121 9745 0 2121 9746 8 Diana Inn Pattaya Hotel 0 3841 3440 0 3841 3441 11 Silom Soi 22 0 2235 2540-4 0 2235 2545 9 Grand Jomtien Palace 0 3823 3628 0 3823 3769 12 Soi Rambutri 1 0 2629 5031 0 2629 5032 Hotel Pattaya 13 Soi Rambutri 2 0 2282 8628-9 0 2282 8661 10 Pattaya Klang 0 3842 5583 0 3842 5582 14 Soi Sukhumvit 4 0 2253 1280 0 2253 1281 11 Pattaya Tai 2 0 3842 8511 0 3842 7696 15 Suan Chatuchak 0 2272 4790-3 0 2272 4802 ext. 150 Weekend Market 12 PS Plaza Pattaya 0 3842 5316 0 3842 5929 16 Sukhumvit 1 (Bumrungrad) 0 2255 2324-7 0 2255 2328 13 Royal Garden Plaza 0 3841 6972-4 0 3841 6996 ext. 107 Pattaya ext. 109 17 Sukhumvit 11 0 2253 8623-4 0 2255 8600 14 Soi Bua Khao Pattaya 1 0 3841 6989-93 0 3841 6994 18 Sukhumvit 15 0 2253 7381-5 0 2253 7386 15 Soi Bua Khao Pattaya 2 0 3842 6170 0 3842 6171 19 Sukhumvit 33 (Bang Kapi) 0 2261 0150-7 0 2261 0164 16 Soi Bua Khao Pattaya 3 0 3841 6421 0 3841 6422 ext. 144 17 Summer Beach Hotel 0 3823 1845 0 3823 1846 20 Sukhumvit 6 0 2255 1861-5 0 2255 1866 Chomtien (Two Pacific Place Building) 18 Tesco Lotus Pattaya Tai 0 3841 3342 0 3841 2662 21 Thanon Khao San 1 0 2282 8959 0 2282 4122 ext. 109 22 Thanon Khao San 2 0 2282 7367 0 2282 7368 19 Thanon Chai Hat Pattaya 0 3805 2274-8 0 3805 2279 23 Thanon Khao San 3 0 2280 5904-8 0 2280 5909 20 Thanon Chai Hat Pattaya 1 0 3842 1403 0 3842 6361 24 Thanon Khao San 4 0 2280 2798 0 2280 2799 21 Thanon Chai Hat Pattaya 3 0 3841 3427 0 3841 3428 25 Thanon Phetchaburi 17 0 2255 5320-4 0 2255 5325 Pattaya Tai ext. 108 22 Thanon Chai Hat Pattaya 4 0 3841 6430 0 3841 6431 26 Wat Trai Mit 0 2221 9184 0 2221 9185 Pattaya Klang 23 Thanon Chai Hat Pattaya 0 3841 5849 0 3841 5850 Soi 13/4 24 Thanon Liab Chai 0 3823 6264-8 0 3823 6269 Hat Chomtien ext. 109 25 Thanon Pattaya Sai 2 0 3841 6423 0 3841 6424 26 Thanon Pattaya Sai 2 0 3842 6210 0 3842 6211 (Pattaya Klang) 27 Thanon Pattaya Sai 2 0 3842 1630 0 3842 1680 (Pattaya Nua) Annual Report 2011 KASIKORNBANKGROUP 335

No. Foreign Exchange Booth Tel. Fax No. Foreign Exchange Booth Tel. Fax 28 Thanon Pattaya-Na Klua 0 3842 0960-2 0 3842 0358 55 Pisona Hat Patong 0 7634 6390 0 7634 6391 29 Thanon Phra Tamnak 0 3841 6713 0 3841 6714 56 Thanon Bang La Patong 1 0 7634 3440 0 7634 3441 Pattaya 57 Thanon Bang La Patong 2 0 7634 0438 0 7634 0439 30 The Avenue Pattaya 0 3805 2240-4 0 3805 2245 58 Thanon Na Nai 0 7634 4790-2 0 7634 4927 31 Walking Street Pattaya 0 3842 1345 0 3842 9429 Hat Patong Phang Nga 59 Thanon Pracha Nukhro 0 7629 3198 0 7629 3253 32 Khao Lak Phang Nga 1 0 7648 5380-4 0 7648 5385 Hat Patong 1 33 Khao Lak Phang Nga 2 0 7648 5386 0 7648 5387 60 Thanon Pracha Nukhro 0 7634 1629 0 7634 1630 Hat Patong 2 Phuket 61 Thara Patong Hotel 0 7634 6288 0 7634 6289 34 Amata Resort Hat Patong 0 7634 0346 0 7634 0407 Phuket 35 Ha Yaek Chalong Phuket 0 7638 1710-1 0 7638 1634 62 Tony Resort Hat Patong 0 7634 3207 0 7634 3208 36 Hat Kamala Phuket 0 7638 6039-43 0 7638 6044 37 Hat Karon Phuket 1 0 7639 8041-5 0 7639 8055 Prachuap Khiri Khan ext. 109 63 Hat Hua Hin 0 3251 3858 0 3251 3859 38 Hat Karon Phuket 2 0 7633 3551 0 7633 3552 Samut Prakan 39 Hat Karon Phuket 3 0 7639 8388 0 7639 8389 64 Airport Link Suvarnabhumi 0 2134 6417 0 2134 6418 40 Hat Kata Phuket 1 0 7633 0573-6 0 7633 0699 41 Hat Kata Phuket 2 0 7633 3010 0 7633 3011 Station 42 Hat Kata Phuket 3 0 7633 0670 0 7633 0671 Surat Thani 43 Hat Kata Phuket 4 0 7633 1005 0 7633 1006 65 Chaweng 2 Ko Samui 0 7742 2252 0 7742 2762 44 Hat Kata Phuket 5 0 7633 0817 0 7633 0818 66 Chaweng 3 Ko Samui 0 7741 3243 0 7741 4223 45 Hat Kata Phuket 6 0 7633 0824 0 7633 0825 (Living Plaza) 46 Hat Kata Phuket 7 0 7633 0961 0 7633 0962 67 Chaweng Center 0 7741 3641 0 7741 3642 47 Hat Patong 1 0 7634 0447-9 0 7634 0198 Ko Samui ext. 114 68 Chaweng Ko Samui 0 7743 0267-8 0 7743 0494 48 Hat Patong 2 0 7634 0060 0 7634 0069 69 Hat Chaweng 1 0 7741 3871 0 7741 3872 49 Jung Ceylon Phuket 1 0 7636 6060-4 0 7636 6065 70 Hat Chaweng 2 0 7742 2690 0 7742 2692 50 Jung Ceylon Phuket 2 0 7636 6745 0 7636 6746 71 Hat Chaweng 3 0 7741 4439 0 7741 4440 51 Jung Ceylon Phuket 3 0 7636 6741 0 7636 6742 72 Lamai Ko Samui 0 7742 4616-8 0 7742 4619 52 Karon Sea Sands Resort 0 7639 6429 0 7639 6430 ext. 107 53 Mr. Good’s Seafood 0 7634 0167 0 7634 0168 Patong Trat 54 Ocean Plaza Hat Patong 0 7634 1545 0 7634 1546 73 Ko Chang 0 3955 1483-4 0 3955 1508

K-SAFE DEPOSIT BOX CENTER

Bangkok No. Branch Tel. Fax Business Hours 1 Lat Phrao 92 0 2530 4905 0 2530 4966 Monday - Friday 9.00 - 20.00 hrs., Saturday - Sunday 9.00 - 17.00 hrs. 2 Sukhumvit 6 0 2254 6848-9 0 2255 1866 Monday - Friday 9.00 - 20.00 hrs., Saturday - Sunday 9.00 - 17.00 hrs. (Two Pacific Place Building) Annual Report 2011 336 KASIKORNBANKGROUP

THE WISDOM EXCLUSIVE CENTER

Bangkok No. Branch Tel. Fax Business Hours 1 Phahon Yothin Main Branch 0 2273 1212-6 0 2273 1234 Monday - Friday 8.30 - 15.30 hrs. 2 Silom Main Branch 0 2232 5001 0 2234 5145 Monday - Friday 8.30 - 15.30 hrs. ext. 5220, 5248 3 Thanon Ratchada Phisek 0 2693 2463 0 2693 3240 Monday - Friday 8.30 - 15.30 hrs. Huai Khwang ext. 148 4 Thanon Sathon 0 2238 2881-6 0 2238 2887 Monday - Friday 8.30 - 15.30 hrs. 5 Thanon Sua Pa 0 2226 4560-9 0 2225 6902 Monday - Friday 8.30 - 15.30 hrs. Main Branch ext. 5600-1 6 Yaowarat 0 2623 3636 0 2226 4806 Monday - Friday 8.30 - 15.30 hrs. ext. 113, 115 7 Central Bangna 2 0 2398 5820-1 0 2398 5827 Daily 11.00 - 20.00 hrs. 0 2398 5824-6 8 Sofitel So Bangkok Hotel 0 2562 7781-88 0 2562 7780 Daily 9.00 - 21.00 hrs.

Upcountry No. Branch Tel. Fax Business Hours 9 Central Plaza Chiangmai 0 5390 3607 0 5390 3612 Daily 11.00 - 20.00 hrs. Airport 2

THE WISDOM CORNER

Bangkok No. Branch Tel. Fax Business Hours 1 Rat Burana Main Branch 0 2871 3650-5 0 2871 3645 Monday - Friday 8.30 - 15.30 hrs. 2 Siam Paragon 0 2610 9404-8 0 2610 9409 Daily 11.00 - 20.00 hrs. 3 Siam Square 0 2658 1755-9 0 2658 1754 Daily 10.00 - 18.00 hrs. 4 Wang Burapha 0 2623 7681-90 0 2225 0344 Monday - Friday 8.30 - 15.30 hrs. 5 Paradise Park 0 2325 9108-12 0 2325 9113 Daily 10.30 - 20.00 hrs. 6 Thanon Sukhumvit 55 0 2178 0904 0 2178 0909 Monday - Friday 8.30 - 15.30 hrs. (Soi Thong Lo 20) 7 Central Ladprao 1 0 2541 1543 0 2541 1548 Daily 11.00 - 20.00 hrs. 8 Central Plaza Grand 0 2160 3813-7 0 2276 8725 Daily 11.00 - 20.00 hrs. Rama 9 9 Central Rama III 0 2673 6338-9 0 2673 6240 Daily 11.00 - 20.00 hrs. 10 Sukhumvit 57 0 2392 2039 0 2390 0784 Monday - Friday 8.30 - 15.30 hrs. 0 2714 1089-94 Annual Report 2011 KASIKORNBANKGROUP 337

No. Branch Tel. Fax Business Hours 11 Sukhumvit 33 (Bang Kapi) 0 2261 0151-7 0 2261 0164 Monday - Friday 8.30 - 15.30 hrs. 12 Central World 0 2251 0231-5 0 2251 0236 Daily 11.00 - 20.00 hrs. 13 Maxvalu Phattanakan 0 2231 3374 0 2322 2589 Monday - Friday 9.00 - 18.00 hrs., Saturday - Sunday 10.00 - 18.00 hrs. 0 2722 1004-8 0 2722 2202 14 Thanon Thepharak Km. 16 0 2750 6193-5 0 2750 7328 Monday - Friday 8.30 - 15.30 hrs. 0 2750 7326-7 15 Chaeng Watthana 0 2562 8008 0 2562 8015 Monday - Friday 8.30 - 15.30 hrs. Muang Thong Thani 0 2562 8001-7 Main Branch 0 2562 8009-14 16 Central Pin Klao 0 2424 3595-6 0 2424 2834 Daily 11.00 - 20.00 hrs. 0 2424 3990-2 17 Phat Phong 0 2637 0041-8 0 2637 0477 Monday - Friday 8.30 - 15.30 hrs. 0 2637 0470-4

Upcountry No. Branch Tel. Fax Business Hours 18 Central Festival Phuket 0 7624 9981 0 7624 9985 Daily 11.00 - 20.00 hrs. 19 Thanon Sukhumvit Pattaya 0 3841 6859-63 0 3841 6864 Monday - Friday 8.30 - 16.30 hrs.

THE WISDOM K-SAFE DEPOSIT BOX CENTER

Bangkok No. Branch Tel. Fax Business Hours 1 Sukhumvit 6 0 2254 6848-9 0 2255 1866 Monday - Friday 9.00 - 20.00 hrs., Saturday - Sunday 9.00 - 17.00 hrs. (Two Pacific Place Building) 2 Lat Phrao 92 0 2530 4905 0 2530 4966 Monday - Friday 9.00 - 20.00 hrs., Saturday - Sunday 9.00 - 17.00 hrs. 0 2530 4865 3 Sofitel So Bangkok Hotel 0 2562 7781-88 0 2562 7780 Daily 9.00 - 21.00 hrs. Annual Report 2011 338 KASIKORNBANKGROUP

K-WePlan BRANCH

Service Hours: Tuesday - Thursday 17.00 - 19.00 hrs. Able to make an appointment via K-Contact Center 0 2888 8888 ext. 09 (24 hrs.) at least 1 day before the meeting Bangkok: 34 Branches Upcountry: 173 Branches Central: 38 Branches No. K-WePlan No. K-WePlan No. K-WePlan 1 All Seasons Place Ang Thong Ratchaburi 2 Bang Bon 1 Pa Mok 19 Ban Pong 3 Bang Khae Chai Nat 20 Thanon Sri Suriyawong Ratchaburi 4 Bang Khen Samut Prakan 5 Bang Khun Thian 2 Chai Nat 6 Bang Su Lop Buri 21 Bang Phli 22 Phra Pradaeng 7 Bang Yikhan 3 Ban Mi 8 Energy Complex (PTT) 23 Thanon Thepharak Nakhon Nayok 9 Hua Mak Samut Sakhon 4 Nakhon Nayok 10 Kluai Nam Thai 24 Ban Phaeo Lak Sam 11 Lat Krabang Nakhon Pathom 25 Damnoen Saduak 12 Lat Phrao 25 5 Om Yai 26 Krathum Baen Samut Sakhon 13 Phahon Yothin Main Branch 6 Thanon Phetkasem Nakhon Pathom 27 Phanthai Norasing Samut Sakhon 14 Phat Phong 28 Samut Sakhon Nonthaburi 15 Phetkasem 51 29 Talat Samut Sakhon 16 Phra Khanong 7 Chaeng Watthana Muang Thong Thani 30 Thanon Ekkachai Samut Sakhon 17 Rat Burana Main Branch Main Branch 31 Thanon Ekkachai-Photchae 18 Sanam Pao 8 Thanon Ngam Wong Wan 32 Thanon Setthakit 1 Samut Sakhon 19 Saphan Krung Thon Pathum Thani Saraburi 20 Saphan Luang 9 Khlong 6 Thanyaburi 21 Saphan Mai Don Muang 33 Phra Phutthabat 10 Nava Nakorn 34 Saraburi 22 Siam Square 11 Rangsit 35 Thanon Sutbanthad Saraburi 23 Silom Main Branch 12 Talat Si Mum Muang-Rangsit 24 Sukhumvit 1 (Bumrungrad) Sing Buri Phetchaburi 25 Sukhumvit 101 36 Sing Buri 26 Sukhumvit 33 (Bang Kapi) 13 Phetchaburi Suphan Buri 27 Thanon Nawamin 36 14 Tha Yang 37 Suphan Buri 28 Thanon Phetchaburi Tat Mai Phra Nakhon Si Ayutthaya 29 Thanon Ram Intra 38 Thanon Malaiman Suphan Buri 15 Ayutthaya 30 Thanon Ramkhamhaeng 151 16 Thanon Rojana Ayutthaya 31 Thanon Ratchada Phisek Huai Khwang 32 Thanon Sua Pa Main Branch Prachuap Khiri Khan 33 Thon Buri 17 Hua Hin 34 Wang Burapha 18 Pran Buri Data as of January 1, 2012 Annual Report 2011 KASIKORNBANKGROUP 339

North: 41 Branches No. K-WePlan No. K-WePlan No. K-WePlan Chiang Rai Nan Khon Kaen 1 Central Plaza Chiang Rai* 29 Nan 5 Ban Phai 2 Chiang Khong Phayao 6 Chum Phae 3 Chiang Rai 7 Khon Kaen University 30 Chiang Kham 8 Kranuan Chiang Mai 31 Chun 9 Thanon Kasikorn Thung Sang Khon Kaen 32 Si Yaek Mae Tam Phayao 4 Big-C Chiang Mai (Don Chan)* 10 Thanon Mittraphap Khon Kaen 5 Big-C Chiang Mai 2 (Yaek San Dek)* Phetchabun 11 Thanon Na Muang Khon Kaen 6 Central Plaza Chiang Mai Airport* 33 Phetchabun 12 Thanon Sri Chan Khon Kaen 7 Central Plaza Chiang Mai Airport 2* 34 Sap Samo Thot Loei 8 Chang Phuak Chiang Mai Phichit 9 Chiang Mai University 13 Loei 10 Mae Rim Chiang Mai 35 Phichit Maha Sarakham 11 Mi Chok Plaza Phitsanulok 14 Maha Sarakham (Thanon Chiang Mai-Mae Jo) 36 Ha Yaek Khok Matum Nakhon Phanom 12 Night Bazaar Phrae 15 Nakhon Phanom 13 Talat Pratu Chiang Mai 37 Phrae 14 Talat Warorot Nakhon Ratchasima 15 Thanon Chang Klan Chiang Mai Sukhothai 16 Dan Khun Thot 16 Thanon Charoen Muang Chiang Mai 38 Sukhothai 17 Si Khiu Nakhon Ratchasima 18 Thanon Chomphon Nakhon Ratchasima 17 Thanon Moon Muang Chiang Mai Tak 18 Thanon Nimmanhemin Chiang Mai 19 Thanon Chomsurangyat 39 Mae Sot 19 Thanon Suthep Chiang Mai Nakhon Ratchasima 40 Tak 20 Thanon Tha Phae Chiang Mai 20 Thanon Mittraphap Nakhon Ratchasima Uthai Thani 21 The Mall Nakhon Ratchasima* Kamphaeng Phet 41 Nong Chang 22 Wang Nam Khieo 21 Kamphaeng Phet Nong Khai 22 Khlong Khlung Northeast: 39 Branches 23 Nong Khai Lampang 24 Pak Khat No. K-WePlan 23 Thanon Chatchai Lampang Roi Et Amnat Charoen Lamphun 25 Roi Et 1 Amnat Charoen 24 Lamphun 26 Thanon Thevaphiban Roi Et Buriram Mae Hong Son Sakon Nakhon 2 Buri Ram 25 Mae Hong Son 27 Phang Khon 26 Pai Chaiyaphum 28 Sakon Nakhon Nakhon Sawan 3 Chaiyaphum 29 Sawang Daen Din 27 Thanon Kosi Nakhon Sawan Kalasin Si Sa Ket 28 Thanon Sawanwithi Nakhon Sawan 4 Kalasin 30 Si Sa Ket Annual Report 2011 340 KASIKORNBANKGROUP

No. K-WePlan No. K-WePlan No. K-WePlan Surin Prachin Buri Phuket 31 Surin 19 Industrial Park 304 10 Hat Kata Phuket Ubon Ratchathani 20 Prachin Buri 11 Jung Ceylon Phuket* 21 Si Mahosot 12 Phuket 32 Sunee Tower Ubon Ratchathani 13 Thalang Phuket 33 Thanon Chayangkun Ubon Ratchathani Rayong 14 Thanon Na Nai Hat Patong Udon Thani 22 Eastern Seaboard Industrial Estate Rayong 23 Mab Ta Phut Ranong 34 Ban Dung 24 Rayong 15 Ranong 35 Nam Som 25 Thanon Chantha Udom Rayong 36 Talat Muang Thong Charoensri Udon Thani Satun 37 Thanon Prajak Udon Thani Sa Kaeo 16 Satun 38 Udon Thani 26 Wang Nam Yen Songkhla Yasothon Trat 17 Chong Khao-Mo O Hat Yai 39 Yasothon 27 Talat Thetsaban Trat Branch 18 Robinson Hat Yai* 28 Trat 19 Thanon Phetkasem Hat Yai Surat Thani East: 28 Branches South: 27 Branches 20 Chai Buri No. K-WePlan No. K-WePlan 21 Chaweng Ko Samui Chachoengsao Chumphon 22 Phunphin 23 Si Yaek Sang Phet Surat Thani 1 Bang Khla 1 Chumphon 24 Thanon Talat Mai Surat Thani 2 Chachoengsao 2 Lang Suan Chumphon Trang Chanthaburi Nakhon Si Thammarat 25 Thanon Choem Panya Trang 3 Robinson Chanthaburi* 3 Chandi 26 Trang 4 Thanon Triratana Chanthaburi 4 Nakhon Si Thammarat Yala Chon Buri 5 Thung Song 27 Yala 5 Amata Nakorn Industrial Estate Chon Buri Narathiwat 6 Bo Win Chon Buri 6 Sungai Kolok Data as of January 1, 2012 7 Pattaya Klang Phang Nga 8 Phanat Nikhom * Note: Service Hours (Branch in Department Store): 7 Phang Nga Tuesday - Thursday 18.00 - 20.00 hrs. 9 Si Racha 8 Thai Muang 10 Soi Bua Khao Pattaya 11 Talat Ko Pho Phatthalung 12 Talat Na Klua 9 Phatthalung 13 Thanon Chai Hat Pattaya 14 Thanon Liab Chai Hat Chomtien 15 Thanon Sukhumvit Chon Buri 1 16 Thanon Sukhumvit Chon Buri 2 17 Thanon Sukhumvit Na Klua 18 Thanon Wachira Prakan Chon Buri Annual Report 2011 KASIKORNBANKGROUP 341

CORPORATE BUSINESS CENTER Business Hours: Monday - Friday 8.30 - 16.30 hrs. 1 Bangkok Branch No. Corporate Business Center Tel. Fax No. Corporate Business Center Tel. Fax 1 Corporate Business Center 0 2470 2951 - Nakhon Sawan Phahon Yothin 4 Corporate Business Center 0 5637 2231-7 0 5637 2239 Thanon Sai Asia 7 Upcountry Branches Nakhonsawan No. Corporate Business Center Tel. Fax Songkhla Chon Buri 5 Corporate Business Center 0 7422 1944-5 0 7422 1946 1 Corporate Business Center 0 3845 8972-5 0 3845 8976 Thanon Phetkasem Hat Yai Amata Nakorn Industrial Phuket Estate Chon Buri 2 6 Corporate Business Center 0 7621 9851 0 7621 9851 2 Corporate Business Center 0 3849 3830-2 0 3849 3833 Phuket Laem Chabang Surat Thani Nakhon Ratchasima 7 Corporate Business Center 0 7742 6163 0 7742 6164 3 Corporate Business Center 0 4425 8723 0 4425 8883 Ko Samui Hua Tha Le Nakhon Ratchasima

CORPORATE & SME SERVICE CENTER Business Hours: Monday - Friday 8.30 - 16.30 hrs. Bangkok No. Corporate & SME Service Center Tel. Fax No. Corporate & SME Service Center Tel. Fax 1 Corporate & SME Service 0 2282 1822-3 0 2282 1839 9 Corporate & SME Service 0 2367 3388-89 0 2367 3390 Center Bang Lamphu 0 2282 1838 Center Kluai Nam Thai 2 Corporate & SME Service 0 2585 7468 0 2585 9767 10 Corporate & SME Service 0 2739 0191-5 0 2326 8303 Center Bang Pho 0 2585 9747 Center Lat Krabang ext. 155-8 3 Corporate & SME Service 0 2586 7800 0 2586 7292 11 Corporate & SME Service 0 2513 1504 0 2513 1724 Center Bang Su 0 2586 7255-6 Center Lat Phrao 25 0 2513 1571 4 Corporate & SME Service 0 2424 2543 0 2424 2166 12 Corporate & SME Service 0 2273 1401 0 2273 1472 Center Bang Yikhan 0 2424 2160 Center Phahon Yothin 0 2273 1403-11 0 2273 1635 0 2424 2163 13 Corporate & SME Service 0 2454 0278-9 0 2454 2606 5 Corporate & SME Service 0 2877 5641-7 0 2476 0620 Center Phetkasem 51 0 2454 2605 Center Dao Khanong ext. 200-7, 301-4 0 2877 5697 14 Corporate & SME Service 0 2214 6450-2 0 2214 6453 6 Corporate & SME Service 0 2537 0366-7 0 2537 0368 Center Saphan Luang Center Energy Complex 15 Corporate & SME Service 0 2634 0580-9 0 2234 6178 (PTT) Center Silom ext. 5420-30 0 2234 9650 7 Corporate & SME Service 0 2377 3522-3 0 2377 3357 0 2234 5141 Center Hua Mak 0 2377 3351 16 Corporate & SME Service 0 2331 0875-7 0 2331 0878 8 Corporate & SME Service 0 2314 2313-16 0 2314 2317 Center Sukhumvit 101 Center Thanon 17 Corporate & SME Service 0 2261 0133-8 0 2261 0145 Phattanakan 20 Center Sukhumvit 33 ext. 201-4 (Bang Kapi) Annual Report 2011 342 KASIKORNBANKGROUP

No. Corporate & SME Service Center Tel. Fax No. Corporate & SME Service Center Tel. Fax 18 Corporate & SME Service 0 2639 1314-6 0 2639 1317 Pathum Thani Center Surawong 4 Corporate & SME Service 0 2533 0874-5 0 2533 0877 19 Corporate & SME Service 0 2254 5652-4 0 2254 5655 Center Khlong 2 Thanyaburi 0 2533 0883-4 Center Thanon 5 Corporate & SME Service 0 2529 1572-3 0 2529 1522 Phetchaburi 17 Center Nava Nakorn 0 2529 1231 0 2529 1963 20 Corporate & SME Service 0 2552 8329-30 0 2552 8624 Phra Nakhon Si Ayutthaya Center Thanon Ram Intra 0 2552 8623 21 Corporate & SME Service 0 2417 2361-3 0 2417 2364 6 Corporate & SME Service 0 3535 1691-3 0 3535 1694 Center Thanon Rama II Center Hi Tech Industrial 22 Corporate & SME Service 0 2284 3760-2 0 2284 3763 Estate Ayutthaya 7 Corporate & SME Service 0 3533 2293-4 0 3533 2295 Center Thanon Rama III Center Rojana Industrial Park 23 Corporate & SME Service 0 2264 0072-4 0 2264 0083 Center Thanon Ratchada 0 2264 0080-2 Ratchaburi Phisek (Sukhumvit-Rama IV) 8 Corporate & SME Service 0 3222 2674-6 0 3222 1233 24 Corporate & SME Service 0 2236 7642-3 0 2236 7646 Center Ban Pong Center Thanon Sathon 0 2236 7645 Samut Prakan 25 Corporate & SME Service 0 2399 4225-7 0 2398 0477 9 Corporate & SME Service 0 2316 6642-3 0 2316 6646 Center Thanon Sri Nakharin Center Bang Phli 0 2316 6645 Km.9 10 Corporate & SME Service 0 2134 1901-2 0 2134 1903 26 Corporate & SME Service 0 2221 3131-8 0 2225 6575 Center Customs Free Zone 0 2134 1904 Center Thanon Sua Pa ext. 6202-9 0 2226 1795 Suvarnabhumi 0 2226 4560-79 11 Corporate & SME Service 0 2464 3153-4 0 2464 3578 27 Corporate & SME Service 0 2518 2052 0 2518 2058 Center Phra Pradaeng 0 2464 3577 Center Thanon Serithai 46 0 2518 2054-5 12 Corporate & SME Service 0 2380 0601-3 0 2380 0604 (Suan Siam) Center Samrong 28 Corporate & SME Service 0 2223 7427-29 0 2223 7430 (Pu Chao Center) Center Wang Burapha 13 Corporate & SME Service 0 2395 3085 0 2387 1192 Center Samut Prakan 0 2395 3441 14 Corporate & SME Service 0 2324 3113-5 0 2324 3116 Upcountry Center Talat Bang Pu Central Industrial Estate 15 Corporate & SME Service 0 2386 5165-7 0 2386 5168 No. Corporate & SME Service Center Tel. Fax Center Talat Nam Daeng Nakhon Pathom 16 Corporate & SME Service 0 2178 2183-5 0 2178 2187 1 Corporate & SME Service 0 2811 6845-6 0 2431 2042 Center Thanon King Kaeo Center Om Yai 0 2431 2043 Samut Prakan Nonthaburi Samut Sakhon 2 Corporate & SME Service 0 2594 2940-2 0 2594 2943 17 Corporate & SME Service 0 3442 3445-7 0 3442 3448 Center Thanon Center Thanon Ekkachai Rattanathibet Bang Yai Samut Sakhon 3 Corporate & SME Service 0 2574 6576-7 0 2574 6569 18 Corporate & SME Service 0 3481 6666 0 3481 6708 Center Thanon 0 2574 6567 Center Thanon Setthakit 1 0 3481 6707 Chaeng Watthana Samut Sakhon 0 3442 2395-6 Annual Report 2011 KASIKORNBANKGROUP 343

North East No. Corporate & SME Service Center Tel. Fax No. Corporate & SME Service Center Tel. Fax Chiang Mai Chon Buri 19 Corporate & SME Service 0 5328 2681 0 5328 2680 23 Corporate & SME Service 0 3844 6329-30 0 3844 6335 Center Thanon Tha Phae 0 5327 1677 Center Ban Bung 0 3844 6334 Chiang Mai 24 Corporate & SME Service 0 3874 3853-5 0 3874 3856 Center Amata Nakorn Lamphun Industrial Estate Chon Buri 20 Corporate & SME Service 0 5358 2693-4 0 5358 2695 25 Corporate & SME Service 0 3833 0054 0 3833 0055 Center Lamphun Industrial Center Laem Chabang 0 3849 3620-1 0 3849 3622 Estate 26 Corporate & SME Service 0 3841 6215-6 0 3841 6245 Center Pattaya Klang 0 3841 6220-1 27 Corporate & SME Service 0 3845 7678 0 3834 6656 Northeast Center Amata Nakorn 0 3834 6654-5 No. Corporate & SME Service Center Tel. Fax Industrial Estate Chon Buri II Nakhon Ratchasima Prachin Buri 21 Corporate & SME Service 0 4425 1752 0 4425 1727 28 Corporate & SME Service 0 3727 4060-2 0 3727 4063 Center Thanon Chomphon 0 4425 1773 Center Industrial Park 304 Nakhon Ratchasima 0 4425 1776 Rayong Udon Thani 29 Corporate & SME Service 0 3865 0168-70 0 3865 0171 22 Corporate & SME Service 0 4222 4184-5 0 4224 7044 Center Amata City Rayong Center Talat Muang Thong 0 4222 4248-9 Industrial Estate Charoensri Udon Thani 30 Corporate & SME Service 0 3865 6342-3 0 3865 6344 Center Eastern Seaboard Industrial Estate Rayong 31 Corporate & SME Service 0 3860 9490 0 3860 9489 Center Mab Ta Phut 0 3860 7522

South No. Corporate & SME Service Center Tel. Fax Phuket 32 Corporate & SME Service 0 7621 9819-20 0 7621 9825 Center Phuket Songkhla 33 Corporate & SME Service 0 7422 0501-2 0 7423 5772 Center Thanon Phetkasem 0 7424 6716 Hat Yai Surat Thani 34 Corporate & SME Service 0 7791 0070-2 0 7791 0073 Center Surat Thani Annual Report 2011 344 KASIKORNBANKGROUP

SME BUSINESS CENTER Business Hours: Monday - Friday 8.30 - 16.30 hrs. 82 Upcountry Branches 32 Bangkok Branches 20 Central Branches No. SME Business Center Tel. Fax No. SME Business Center Tel. Fax 1 Bang Khun Non 0 2424 6573 0 2424 7716 1 Bang Phli 0 2317 1282 0 2317 1287 0 2424 0897 0 2316 7563 0 2316 7568 2 Bang Khun Thian 0 2476 5721 0 2476 8608 2 Big C Lop Buri 0 3642 4581 0 3642 4585 3 Bangkae 0 2413 1316 0 2413 1319 3 Hua Hin 0 3252 1270 0 3252 1330 4 Bangkhen 0 2513 7142 0 2513 7576 4 Nakhonpathom 0 3425 4261 0 3425 4722 5 Bangmod 0 2428 6829 0 2428 2028 0 3425 4722 0 3425 4723 6 Dao Khanong 0 2476 3691-5 0 2476 8820 5 Nava Nakorn 0 2529 6302 0 2529 6310 0 2877 5677 0 2877 5683 0 2316 7563 0 2316 7568 7 Hua Mak 0 2378 4561 0 2377 7544 6 Om Yai 0 2811 6570 0 2811 6475 0 2378 4567 7 Phra Pradaeng 0 2464 0691 0 2464 0812 8 Lat Phrao 25 0 2511 5890 0 2511 5899 8 Rangsit 0 2567 2366 0 2567 4828 9 Maxvalue Phattanakarn 0 2320 0059 0 2321 1972 0 2567 5108 0 2321 7033 0 2321 7030 9 Ratchaburi 0 3231 5052 0 3232 8166 10 Minburi 0 2518 1472 0 2518 1466 10 Thanon Rojjana Ayutthaya 0 3533 7040 0 3533 7060 11 Phetkasem 51 0 2801 3630 0 2801 3635 0 3533 5330 0 3533 5240 12 Pinklao 0 2434 1520 0 2434 1575 11 Sampan 0 3432 6450 0 3432 6432 13 Pravet 0 2328 8677 0 2328 8679 12 Samut Prakarn 0 2388 0138 0 2388 0196 0 2328 7562 0 2328 7217 13 Samut Songkhram 0 3471 2014 0 3471 2018 14 Si Yaek Wang Hin 0 2570 1861 0 2570 1865 14 Talat Bang Pa-in 0 3570 0356 0 3570 0360 0 2570 0510 0 2570 1783 Industrial Estate 15 Silom Main Branch 0 2634 4021 0 2234 7448 15 Talat Chatchai Huahin 0 3251 5856 0 3251 2358 0 2237 2961 0 2237 2967 0 3260 1238 0 3260 2335 16 Sukhumvit 107 0 2399 4502 0 2399 4535 16 Thanon Malaiman 0 3552 5558 0 3552 6058 0 2399 4501 Supanburi 0 3552 6077 0 3552 6058 17 Sukhumvit 33 (Bang Kapi) 0 2261 4455-8 0 2261 4269 17 Thanon Setthakit 1 0 3442 4918 0 3442 4922 0 2260 2566 0 2260 2569 Samut Sakhon 0 3481 6956 0 3481 6959 18 Thanon Suksawat 0 2476 5910 0 2476 5914 0 3481 6674 0 3481 5966 19 Thanon Bang Na-Trad 0 2397 3723 0 2397 3727 18 Thanon Sudbantat 0 3621 1305 0 3621 1284 (Km.4) 0 2397 3729 0 2397 3731 Saraburi 20 Thanon Chaeng Watthana 0 2982 9927 0 2982 9767 19 Thanon Surasongkhram 0 3641 4080 0 3641 1615 0 2982 9929 0 2982 9768 Lop Buri 0 3661 8534 0 3641 1419 21 Thanon Chan 0 2212 6974 0 2212 6942 20 Thepharak 0 2380 5724 0 2380 5732 22 Thanon Phetchaburi 17 0 2255 0142 0 2255 0146 23 Thanon Rangnam 0 2273 1221 0 2273 5313 24 Thanon Ratchadaphisek 0 2476 1667 0 2476 5611 (Taksin-Thaphra) 25 Thanon Ratchadaphisek 0 2562 7301 0 2562 7318 14 North Branches Huay Kwang (China) 26 Thanon Ratchadaphisek 0 2562 7319 0 2562 7336 No. SME Business Center Tel. Fax Huay Kwang (Japan) 1 Chiang Rai 0 5360 1746 0 5360 1750 27 Thanon Ratchadaphisek 0 2273 3679 0 2276 5208 0 5371 9780 0 5371 7490 Huay Kwang 1 0 5371 1515 0 5371 6720 28 Thanon Ratchadaphisek 0 2273 3671 0 2276 5208 2 Ha Yaek Khok Matum 0 5530 1130 0 5530 4976 Huay Kwang 2 Phitsanulok 29 Thanon Rattanathibate 0 2594 2807 0 2594 2810 3 Kamphaengphet 0 5571 7208 0 5571 4703 Bangyai 0 2594 2715 0 2594 2717 4 Payao 0 5448 4343 0 5448 4344 30 Thanon Sathon 0 2237 6474 0 2236 7152 5 Petchabun 0 5374 3686 0 5674 3690 31 Thanon Sua Pa 0 2634 4021 0 2234 7448 6 Phrae 0 5453 2856 0 5453 2853 Main Branch 0 2223 1327 0 2222 5769 0 5541 3753 0 5541 3935 0 2225 0639 0 2222 5800 0 5452 4707 0 5452 4749 32 Thanon Tivanont (Kaerai) 0 2589 1891 0 2589 1994 7 Pichit 0 5661 3701 0 5661 5082 Annual Report 2011 KASIKORNBANKGROUP 345

16 East Branches No. SME Business Center Tel. Fax No. SME Business Center Tel. Fax 8 Si Yaek Sanambin 0 5320 2533 0 5320 2537 1 Bang Pakong 0 3853 2628 0 3853 2627 Chiang Mai 2 Chachoengsao 0 3881 6300 0 3881 6297 9 Sukhothai 0 5561 6364 0 5561 6314 0 3728 2426 0 3851 2262 0 5551 1074 0 5551 1188 3 Kabin Buri 0 3728 2426 0 3728 1188 10 Thanon Borom 0 5525 9310 0 5525 9417 4 Laem Chabang 0 3849 5150 0 3849 3833 Trailokkanat Phitsanulok 0 5525 9311 0 5525 9418 5 Nongmon Chon Buri 0 3839 4054 0 3839 4005 11 Thanon Chang Klan 0 5328 4991 0 5328 4950 6 Pattaya Tai 0 3842 1532 0 3842 1540 Chiang Mai 7 Rayong 0 3832 8347 0 3832 8352 12 Thanon Chatchai Lampang 0 5422 5145 0 5425 5147 0 3860 5589 0 3860 5605 0 5448 4343 0 5448 4344 0 3861 5603 0 3861 1178 13 Thanon Sawanwithi 0 5637 2155 0 5637 2158 8 Sriracha 0 3832 8347 0 3832 8352 9 Thanon Chantha Udom 0 3861 5801 0 3861 5804 Nakhon Sawan 0 5631 1850 0 5622 1580 Rayong 0 5637 2089 10 Thanon Phrayasatja 0 3882 4803 0 3828 3960 14 Thanon Tha Phae 0 5328 0803 0 5328 0785 11 Thanon Srirongmuang 0 3932 5368 0 3932 5396 Chiang Mai Chanthaburi 12 Thanon Sukhumvit 0 3879 0148 0 3879 0147 Chon Buri 1 13 Thanon Sukhumvit Naklua 0 3842 0202 0 3872 7454 14 Thanon Triratana 0 3932 1945 0 3932 1947 20 Northeast Branches Chanthaburi 0 3932 1742 0 3932 1744 15 Sakaew 0 3728 1395 0 3728 1389 No. SME Business Center Tel. Fax 16 Bowin Chonburi 0 3833 7340 0 3833 7343 1 Buriram 0 4461 8741 0 4461 8736 2 Chaiyapoom 0 4481 3356 0 4481 3600 0 4481 6990 0 4481 6990 3 Hua Tha Le 0 4425 6984 0 4425 6985 Nakhon Ratchasima 4 Kalasin 0 4381 6944 0 4351 6362 12 South Branches 5 Loei 0 4286 1135 0 4286 1135 No. SME Business Center Tel. Fax 6 Nakhon Phanom 0 4251 4048 0 4251 4715 7 Nong Khai 0 4242 0023 0 4242 3063 1 Chumphon 0 7750 6651 0 7750 6654 8 Nongkhae Saraburi 0 3637 0802 0 3637 0812 0 7751 2189 0 7751 2191 9 Pangkone Sakon Nakhon 0 4277 2389 0 4277 2390 2 Thanon Phetkasem Hat Yai 0 7422 3938 0 7422 5154 10 Roi Et 0 4351 4021 0 4351 2613 0 7423 5902 0 7423 6448 11 Sakon Nakhon 0 4271 5371 0 4271 5370 0 7333 1041 0 7333 1040 12 Surin 0 4451 5867 0 4451 5864 3 SongKhla 0 7431 6601 0 7431 6604 13 Thanon Chomphon 0 4424 2884 0 4425 8200 4 Talat Hua It 0 7534 4311 0 7534 4361 Nakhon Ratchasima 0 4425 8200 0 4426 8211 Nakhon Si Thammarat 14 Thanon Na Muang 0 4322 5774 0 4322 8370 5 Nakhon Si Thammarat 0 7534 4367 0 7534 5858 0 7534 4365 Khon Kaen 0 4322 7877 0 4322 1506 6 Trung 0 7559 0506 0 7559 0511 0 4322 8077 0 7559 0268 0 7521 7434 15 Thanon Phrom Thep 0 4524 3578 0 4524 0607 0 7559 0327 0 7559 0420 Ubon Ratchathani 0 4525 6424 0 4525 6451 7 Krabi 0 7562 2120 0 7562 1480 0 4524 0010 0 4524 0819 8 Phuket 0 7621 4100 0 7621 4740 16 Thanon Prajak Udon Thani 0 4221 2052 0 4222 1350 0 7625 6890 0 7625 6894 0 4224 9023 0 7621 4340 17 Thanon Thevaphiban 0 4351 6085 0 4351 6362 9 Surat Thani 0 7727 5971 0 7727 5975 Roi Et 0 4351 8169 0 4351 8108 10 Si Yaek Sangpetch 0 7727 5981 0 7727 5984 18 Udon Thani 0 4224 0174 0 4224 9514 Surat Thani 0 7727 5985 0 7791 0124 19 Wangsapung 0 4284 2127 0 4284 2129 11 Chaweng 2 Ko Samui 0 7741 3863 0 7741 3600 20 Yasothon 0 4571 1243 0 4571 1395 12 Pak Nam Chumphon 0 7752 1807 0 7752 1899 Annual Report 2011 346 KASIKORNBANKGROUP

OVERSEAS OFFICE

Los Angeles International Branch* Hong Kong Branch 601 South Fihueroa Street, Suite 3875, Suite 3316, 33/F, China Merchants Tower, Los Angeles, CA. 90017, U.S.A. Shun Tak Centre, No. 168-200, Connaught Road Central, Hong Kong Tel. : (1) (213) 680 9331-7 Tel. : (852) 2526 6811-5 Fax : (1) (213) 620 9362 Fax : (852) 2868 4342 SWIFT : KASI US 6L SWIFT : KASI HK HH General Manager : Mr. Prasertchao Thuvanuti General Manager : Mr. Chaivudh Chaiphan E-mail : [email protected] E-mail : [email protected]

Cayman Islands Branch Shenzhen Branch P.O. Box 1034 GT, Harbour Place, 4th Floor, 7th Floor, An Lian Building, B03-05, 103 South Church Street, Grand Cayman KY1-1102, 4018 Jin Tian Road, Fu Tian District, Shenzhen 518026, China Cayman Islands Tel. : (86) (755) 8229 1298 C/O Close Bank (Cayman) Limited Fax : (86) (755) 8222 7150 Tel. : (1) (345) 814 1574 SWIFT : KASI CN BS Fax : (1) (345) 949 8499 General Manager : Ms. Chen Jiao General Manager : Ms. Chananya Kongpreecha E-mail : [email protected] E-mail : [email protected]

Beijing Representative Office Shanghai Representative Office Suite 22-C, CITIC Building, Suite 2708, China Insurance Building, 19 Jianguomenwai Dajie, Beijing 100004, China 166 Lujiazui Road (East), Pudong, Shanghai 200120, China Tel. : (86) (10) 6500 8333 Tel. : (86) (21) 6841 9528-9 Fax : (86) (10) 6500 7899 Fax : (86) (21) 6841 9530 Chief Representative : Mr. Chavalit Nithagon Chief Representative : Ms. Nanthakorn Chatchaiskul E-mail : [email protected] E-mail : [email protected]

Kunming Representative Office Tokyo Representative Office Suite 2708, Expo Building, 8F, Pacific Century Place, 1-11-1 Marunouchi, 45 Tuodong Road, Kunming, Yunnan 650011, China Chiyoda-ku, Tokyo 100-6208, Japan Tel. : (86) (871) 310 1092, 318 2727 Tel. : (81) (0) 3 68608258 Fax : (86) (871) 310 5568 Fax : (81) (0) 3 68608201 Chief Representative : Mr. Teerapong Hongboonyarak Chief Representative : Mr. Chakrit Suwannachote E-mail : [email protected] E-mail : [email protected]

* The new address of Los Angeles International Branch, effective from April 2, 2012 (Former address: 350 South Grand Avenue, Suite 3050, Los Angeles, CA. 90071, U.S.A.) Annual Report 2011 KASIKORNBANKGROUP 347

K Companies*

KASIKORN ASSET MANAGEMENT CO., LTD. Head Office Company Address : 400/22 KASIKORNBANK Building, 6th Floor, Phahon Yothin Road, Samsen Nai, Phayathai, Bangkok 10400 Tel. : 0 2673 3999 Fax : 0 2673 3988 KAsset Contact Center : 0 2673 3888 Website : www.kasikornbankgroup.com KASIKORN RESEARCH CENTER CO., LTD. Head Office Company Address : 400/22 KASIKORNBANK Building, 2nd Floor, Phahon Yothin Road, Samsen Nai, Phayathai, Bangkok 10400 Tel. : 0 2273 1144 Fax : 0 2270 1235 KResearch Contact Center : 0 2273 1144 Website : www.kasikornbankgroup.com KASIKORN SECURITIES PCL Head Office Company Address : 400/22 KASIKORNBANK Building, 19th Floor, Phahon Yothin Road, Samsen Nai, Phayathai, Bangkok 10400 Tel. : 0 2696 0000 Fax : 0 2696 0099 KSecurities Contact Center : 0 2696 0011 Website : www.kasikornbankgroup.com

Business Service Center Business Hours: Monday - Friday 8.30 - 17.00 hrs. Bangkok Upcountry No. Business Service Center Tel. Fax No. Business Service Center Tel. Fax 1 Phahon Yothin Branch 0 2696 0000 0 2696 0199 1 Central Airport Plaza 0 5390 4600 0 5390 4611 2 Thanon Sua Pa Branch 0 2622 9153 0 2622 9154 Chiang Mai Branch 2 Thanon Sukhumvit 0 3805 2050 0 3805 2066-67 Pattaya Branch 3 Thanon Thep Krasattri 0 7637 3500 0 7637 3517 Phuket Branch K Investment Corner Business Hours: Monday - Friday 8.30 - 17.00 hrs. Bangkok No. K Investment Corner Tel. Fax No. K Investment Corner Tel. Fax 1 All Seasons Place Branch 0 2696 0623 0 2655 8027 7 Dao Khanong Branch 0 2696 0604 0 2877 7861 2 Bang Su Branch 0 2696 0609 0 2910 4646 8 Fashion Island Ram Indra 0 2696 0617 0 2947 6250 3 Central Lat Phrao Branch 0 2696 0624 0 2937 0746 Branch 4 Central Pin Klao Branch 0 2696 0620 0 2884 8215 9 Lat Phrao 99 Branch 0 2696 0614 0 2932 3651 5 Central Plaza Rama IX 0 2696 0625 0 2160 2998 10 Phat Phong Branch 0 2696 0603 0 2637 1358 Branch 11 Phetkasem 51 Branch 0 2696 0618 0 2801 4613 6 Central World Branch 0 2696 0607 0 2646 1527 12 Rangsit Branch 0 2696 0615 0 2959 2068 * K Companies mean KASIKORNBANK Subsidiaries. Annual Report 2011 348 KASIKORNBANKGROUP

No. K Investment Corner Tel. Fax No. K Investment Corner Tel. Fax 13 Sukhumvit 101 Branch 0 2696 0611 0 2741 8914 19 Thewet Branch 0 2696 0610 0 2628 6461 14 Sukhumvit 33 (Bang Kapi) 0 2696 0608 0 2662 1764 20 Thon Buri Branch 0 2696 0605 0 2861 4939 Branch 21 Wang Burapha Branch 0 2696 0612 0 2623 8380 15 Thanon Chaeng Watthana 0 2696 0616 0 2982 9067 Branch Upcountry 16 Thanon Ngam Wong Wan 0 2696 0619 0 2951 1308 Branch No. K Investment Corner Tel. Fax 17 Thanon Rama III Branch 0 2696 0621 0 2683 2940 1 Central Festival Phuket 0 2696 0622 0 7624 8306 18 Thanon Ratchada Phisek 0 2696 0613 0 2693 0617 Branch Huai Khwang Branch 2 Samut Prakan Branch 0 2696 0606 0 2701 8125

KASIKORN LEASING CO., LTD. Head Office Company Address : 400/22 KASIKORNBANK Building, 17th Floor, Phahon Yothin Road, Samsen Nai, Phayathai, Bangkok 10400 Tel. : 0 2696 9999 Fax : 0 2696 9966 KLeasing Contact Center : 0 2696 9999 Website : www.kasikornbankgroup.com Business Service Center Business Hours: Monday - Friday 8.30 - 17.00 hrs. Upcountry No. Business Service Center Tel. Fax No. Business Service Center Tel. Fax 1 Chiang Mai 0 5341 8681 0 5341 8322 6 Nakhon Sawan (Sawanwithi 0 5633 4941 0 5633 4942 (Thanon Moon Muang Nakhon Sawan Branch) Chiang Mai Branch) 7 Phitsanulok 0 5524 5161 0 5524 5162 2 Chon Buri 0 3879 2131 0 3879 2132 (Phitsanulok Branch) (Thanon Wachira Prakan 8 Phuket 0 7623 8811 0 7623 9311 Chon Buri Branch) (Thanon Thepkasattri 3 Chunthaburi 0 3934 6351 0 3934 6352 Phuket Branch) (Thanon Sri Rong Muang 9 Ratchaburi 0 3232 2171 0 3232 2172 Chanthaburi Branch) (Thanon Sri Suriyawong 4 Khon Kaen (Thanon Sri 0 4332 8561 0 4332 8562 Ratchaburi Branch) Chan Khon Kaen Branch) 10 Saraburi (Saraburi Branch) 0 3631 5921 0 3631 5691 5 Nakhon Ratchasima 0 4425 1488 0 4425 2638 11 Songkhla (Chong Khao-Mo 0 7424 7721 0 7424 7722 (Thanon Chomsurangyat O Hat Yai Branch) Nakhon Ratchasima Branch) 12 Udon Thani 0 4234 2144 0 4234 1122

KASIKORN FACTORY & EQUIPMENT CO., LTD. Head Office Company Address : 400/22 KASIKORNBANK Building, 3rd Floor, Phahon Yothin Road, Samsen Nai, Phayathai, Bangkok 10400 Tel. : 0 2290 2900 Fax : 0 2290 3000 KF & E Contact Center : 0 2290 2900 Website : www.kasikornbankgroup.com Annual Report 2011 KASIKORNBANKGROUP 349

SUMMARY OF SPECIFIED ITEMS PER FORM 56-2

Items Page 1. Company Information 311 1.1 Company 1.2 Other companies in which the proportion of shares held is 10% or greater 1.3 Other references 2. Financial Summary 2 - 3 2.1 Data from financial statements 2.2 Financial ratios 3. Nature of Business 9 - 54 3.1 Business undertakings of the Bank and affiliated companies division of work policies 3.2 Income structure 3.3 Revision in business undertakings 4. Risk Factors 55 - 69 5. Shareholders and Management 5.1 Shareholders 312 5.2 Management 5.2.1 Management Structure 230 - 241 / 284 - 285 5.2.2 Selection of Board members and management 234 - 235 / 240 5.2.3 Remuneration to directors and executives 251 - 253 5.2.4 Corporate governance 221 - 253 5.2.5 Rules of proper use of insider information 225 5.2.6 Internal control and auditing systems 248 - 250 5.3 Dividend Policy 254 6. Related Party Transactions 175 - 187 / 247 - 248 7. Management Discussion and Analysis 9 - 69 8. Financial Statements 8.1 Consolidated and the Bank’s financial statements 76 - 83 8.2 Auditors’ fees 250 Certain statements shown in this session are forward-looking statements in respect of financial position or performance of KASIKORNBANK PCL (“KBank”) in which KBank has prepared such statements based on several assumptions as well as the financial and other information made available from public sources as of the date these statements are made. Statements with words such as “expect”, “believe”, “estimate”, etc., are type of forward looking statements involving uncertainties and subject to change all the time due to future events, including but not limited to, changes in global/national economic, political and regulatory. KBank is not under any obligation to make an update to these forward-looking statements to be correspond to the current situation. Thus, the recipient shall carefully review the statements and make independent decision prior to investing or entering into any transaction.

KASIKORNBANK PCL 1 Soi Rat Burana 27/1, Rat Burana Road, Rat Burana Sub-District, Rat Burana District, Bangkok 10140, Thailand Tel.: 0 2222 0000 Fax: 0 2470 1144-5 K-Contact Center: 0 2888 8888 SWIFT: KASITHBK Website: www.kasikornbankgroup.com

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