Annual Report 2011 | CIMB Thai Bank PCL. CIMB Group With Over 39,000 employees in 14 countries With Asset Size – Ranked th 5 in the region With Over 1,000 branches in the region With Rapid Growth of 500 % in term of market capitalisation Content Financial Highlights and Performance Indicators 4 Chairman’s Message 6 CEO’s Message 8 Letter from Group Chief Executive, CIMB Group 10 Board of Directors 12 The Management 14 Organisation Chart 16 Corporate Responsibility 22 2011 Overview and 2012 Outlook 26 Business Review 27 Management Discussion and Analysis 35 Risk Factors and Risk Management 43 Good Corporate Governance 48 CIMB Thai Management structure 67 Report of Nomination and Remuneration Committee 98 Report of Audit Committee in 2011 99 Report of Responsibility of the Board of Directors for Financial Statement 100 Report of Independent Auditor 101 Financial Statements 103 Notes to the Financial Statements 112 Corporate Information 191 Broaden the horizon As you flip through this annual report, it’s already clear to Foundation CIMB Thai where we long to be in 2015: among the banking and success Growth Stability business elites of ASEAN. Strength To us, this aspiration is inevitable, for our mindset and our business ways aim not only at business bottom lines. Rather, on our horizon is the financial prosperity of retail and corporate customers, galvanized into the power of economic prosperity for ASEAN. In other words, ASEAN FOR YOU is not just some nice wording, Business leaders but our pledge of ASEAN power to all our customers. Secure… Strong… Highly potential… On-growing… With credit rating of AA- (tha) With support from its major With CIMB Group owning more In only 2 years of establishment or very low risk level according shareholder, i.e. CIMB Group, than 90% shares, hence firm has CIMB Thai Bank turned around to world renowned Fitch Ratings, whose credit rating in the global and sustainable commitment to from operating at loss under the hence comparable to those of arena is BBB+ (Investment Grade) investment and operation in name of BankThai Bank to steady leading medium sized banks which is on a par with those of Thailand, CIMB Thai Bank has profitability since 2009, with 2011 in Thailand. leading large banks in the region. been supported by the Group posting a record high profit of However, CIMB Group’s strength comprehensively covering capital, nearly THB 1.3 billion. lies in its network that covers personnel and synergizing of all main countries in ASEAN. such expertise as technology and innovation. Capability Fundamentally strong and Stable… Taking the lead… Healthy… committed to success… CIMB Thai Bank has stable CIMB Thai Bank has high product CIMB Thai Bank has NPL ratio CIMB Group has been developed financial status with BIS ratio of development potential.It has of at 3.4%, hence among the for the past 6 years from an as high as 13.0%, which is higher offered a vast array of financial top 5 banks that have lowest NPL Security investment bank to a universal than the mandatory criteria of 8.5%, products i.e. debt securities and ratios in the industry. bank ranking the 5th largest in thus being sufficient to serve investment banking transactions, ASEAN and having the broadest business expansion and cope with number of deals ranking branch network. It is among with any volatility. no. 3 of the industry in 2011. ASEAN top growth companies, with the 5th largest market capitalization and over THB 40 billion profit in 2011. Broaden the horizon As you flip through this annual report, it’s already clear to Foundation CIMB Thai where we long to be in 2015: among the banking and success Growth Stability business elites of ASEAN. Strength To us, this aspiration is inevitable, for our mindset and our business ways aim not only at business bottom lines. Rather, on our horizon is the financial prosperity of retail and corporate customers, galvanized into the power of economic prosperity for ASEAN. In other words, ASEAN FOR YOU is not just some nice wording, Business leaders but our pledge of ASEAN power to all our customers. Secure… Strong… Highly potential… On-growing… With credit rating of AA- (tha) With support from its major With CIMB Group owning more In only 2 years of establishment or very low risk level according shareholder, i.e. CIMB Group, than 90% shares, hence firm has CIMB Thai Bank turned around to world renowned Fitch Ratings, whose credit rating in the global and sustainable commitment to from operating at loss under the hence comparable to those of arena is BBB+ (Investment Grade) investment and operation in name of BankThai Bank to steady leading medium sized banks which is on a par with those of Thailand, CIMB Thai Bank has profitability since 2009, with 2011 in Thailand. leading large banks in the region. been supported by the Group posting a record high profit of However, CIMB Group’s strength comprehensively covering capital, nearly THB 1.3 billion. lies in its network that covers personnel and synergizing of all main countries in ASEAN. such expertise as technology and innovation. Capability Fundamentally strong and Stable… Taking the lead… Healthy… committed to success… CIMB Thai Bank has stable CIMB Thai Bank has high product CIMB Thai Bank has NPL ratio CIMB Group has been developed financial status with BIS ratio of development potential.It has of at 3.4%, hence among the for the past 6 years from an as high as 13.0%, which is higher offered a vast array of financial top 5 banks that have lowest NPL Security investment bank to a universal than the mandatory criteria of 8.5%, products i.e. debt securities and ratios in the industry. bank ranking the 5th largest in thus being sufficient to serve investment banking transactions, ASEAN and having the broadest business expansion and cope with number of deals ranking branch network. It is among with any volatility. no. 3 of the industry in 2011. ASEAN top growth companies, with the 5th largest market capitalization and over THB 40 billion profit in 2011. Financial Highlights and Performance Indicators Net Profit In Million Baht Consolidated Bank Only 1,346 (MB) 1,316 Net Profit 2011 2010 2009 2011 2010 2009 At Year End (Restated) (Restated) (Restated) (Restated) 1,002 829 1,316 Total liabilities 154,612 128,539 119,037 153,316 127,508 117,894 Shareholder’s equity 13,411 11,936 7,944 13,235 11,695 7,623 Million Baht Net interest income 4,653 4,326 3,743 3,984 3,850 3,515 Non - interest income 3,119 2,033 1,844 2,557 2,075 1,656 69 Total income 7,772 6,359 5,587 6,541 5,925 5,171 2 Basic earning per share (Baht) 0.08 0.06 0 0.08 0.07 0.01 2009 2010 2011 Book value per share (Baht) 0.82 0.73 0.60 0.81 0.72 0.57 Loans (Restated) (Restated) Asset 168,023 Gross Loan Deposit (BIS Ratio) (MB) 166,551 (MB) (MB) 27% 140,475 139,203 119,289 116,948 101,574 101,291 126,981 94,656 94,540 93,838 125,517 92,161 88,360 88,358 86,020 81,180 14.9 % 14.7 % 13.2 % 13.0 % 12.0 % 11.9 % Deposits 2009 2010 2011 2009 2010 2011 2009 2010 2011 2009 2010 2011 7 (Restated) (Restated) (Restated) (Restated) (Restated) (Restated) (Restated) (Restated) Billion Baht Share Price ROE ROA Gross NPL Ratio (THB) 3.2 12.8% 11.4% 11.2% 2.9 11.1% ROE 9.6% 0.9% 0.9% 9.1% 0.8% 0.7% 11.1% 2.6 3.4% 3.3% 1.1% 2.7% 2.7% 0.0% 0.0% 0.0% 2009 2010 2011 2009 2010 2011 2009 2010 2011 2009 2010 2011 (Restated) (Restated) (Restated) (Restated) (Restated) (Restated) Bank only Consolidated Bank only Consolidated 4 Financial Highlights and Performance Indicators Net Profit In Million Baht Consolidated Bank Only 1,346 (MB) 1,316 Net Profit 2011 2010 2009 2011 2010 2009 At Year End (Restated) (Restated) (Restated) (Restated) 1,002 829 1,316 Total liabilities 154,612 128,539 119,037 153,316 127,508 117,894 Shareholder’s equity 13,411 11,936 7,944 13,235 11,695 7,623 Million Baht Net interest income 4,653 4,326 3,743 3,984 3,850 3,515 Non - interest income 3,119 2,033 1,844 2,557 2,075 1,656 69 Total income 7,772 6,359 5,587 6,541 5,925 5,171 2 Basic earning per share (Baht) 0.08 0.06 0 0.08 0.07 0.01 2009 2010 2011 Book value per share (Baht) 0.82 0.73 0.60 0.81 0.72 0.57 Loans (Restated) (Restated) Asset 168,023 Gross Loan Deposit (BIS Ratio) (MB) 166,551 (MB) (MB) 27% 140,475 139,203 119,289 116,948 101,574 101,291 126,981 94,656 94,540 93,838 125,517 92,161 88,360 88,358 86,020 81,180 14.9 % 14.7 % 13.2 % 13.0 % 12.0 % 11.9 % Deposits 2009 2010 2011 2009 2010 2011 2009 2010 2011 2009 2010 2011 7 (Restated) (Restated) (Restated) (Restated) (Restated) (Restated) (Restated) (Restated) Billion Baht Share Price ROE ROA Gross NPL Ratio (THB) 3.2 12.8% 11.4% 11.2% 2.9 11.1% ROE 9.6% 0.9% 0.9% 9.1% 0.8% 0.7% 11.1% 2.6 3.4% 3.3% 1.1% 2.7% 2.7% 0.0% 0.0% 0.0% 2009 2010 2011 2009 2010 2011 2009 2010 2011 2009 2010 2011 (Restated) (Restated) (Restated) (Restated) (Restated) (Restated) Bank only Consolidated Bank only Consolidated CIMB Thai Bank PCL.