Standard Chartered Bank (Thai) Pcl Annual Report 2014 Driving investment, trade and the creation of wealth across Asia, Africa and the Middle East sc.com/th About us What’s inside this report About Standard Chartered 2 We are a leading international banking group with more Overview than 90,000 employees representing 132 nationalities Performance highlights 4 operating in 71 markets. Chairman’s statement 6 Message from the President and CEO 8 We bank the people and companies driving investment, trade and the creation of wealth across Asia, Africa and the Middle East, where we earn around 90 per cent of our income and profits. Our heritage and values are expressed in our brand promise, Here for good. We provide a wide-range of products and services for personal and business clients across 70 markets. In 2014, we celebrated the Bank’s 120th anniversary in Thailand. Financial Summary of financial results 12 and operating Nature of business 14 review Sustainability 18 Awards & recognition Board of directors 22 Standard Chartered Bank (Thai) has been rated AAA Corporate (tha) for its national long-term rating by Fitch Ratings. governance Senior management 26 Organisation chart 30 SCBT was named the Best Foreign Commercial Bank in Thailand for the second consecutive year by Finance Structure of management 32 Asia. Internal controls 39 Corporate governance 40 Risk 44 Selection of directors and senior executives 48 Nomination and Compensation Committee report 49 Audit Committee report 50 Supplementary General Information 54 information Structure of shareholders 56 Connected transactions 57 Branch information 58 Standard Chartered Annual Report 2014 3 Performance Highlights Loans Corporate Trade Loans Deposits Down 2% to Up 54% to Down 4% to THB 102,308 m THB 16,033 m THB 99,559 m 2013 THB 104,080 m 2013 THB 10,401 m 2013 THB 103,189 m Total Income Working Profit Capital Adequacy Ratio (Solo Basis) Up 3% to Down 3% to Up 3% to THB 12,465 m THB 6,709 m 23.2% 2013 THB 12,075 m 2013 THB 6,950 m 2013 20.1% Five Year Review Total Income Net Profit After tax Unit: Million Baht Unit: Million Baht 3,254 2,981 2,951 11,954 12,075 12,465 11,312 9,127 2,200 1,849 2010 2011 2012 2013 2014 2010 2011 2012 2013 2014 Loans Earning Per Share Unit : Million Baht Unit: Baht 106,168 104,080 102,308 2.19 2.02 1.99 1.48 96,326 1.25 93,333 2010 2011 2012 2013 2014 2010 2011 2012 2013 2014 4 Standard Chartered Annual Report 2014 5 Chairman’s Statement Lim Cheng Teck Chairman 2014 was an eventful year for Standard Chartered realise their business ambitions in a responsible Bank (Thailand) Ltd (SCBT). In particular, we marked manner. We believe that we must and we will our 120th year in Thailand with a celebration with our continue to act with integrity and adhere to the clients, staff, partners and the community. While it highest standards of ethics and compliance in order was a challenging year for our business as external to safeguard the trust that our clients have placed in headwinds impacted momentum, it is heartening to us. With our continued commitment to the Thai note that our colleagues in SCBT rallied strongly community and to demonstrate that we are Here for together and proactively increased our engagement good, we will continue to drive programmes such as with clients and stakeholders to support them. Living with HIV, Financial Education and Seeing is Believing. 2015 marks the fruition of the ASEAN Economic Community, a significant milestone in economic In closing, I would like to thank our clients and integration of this dynamic region. With the move shareholders for their loyalty and continued support. towards a single production base and a bigger My appreciation also goes to the Board of Directors, integrated market, we can look forward to greater Management and Staff of SCBT for their unwavering flows of investment and trade into the region, commitment to the bank and hard work in the past propelling economic growth. Standard Chartered, year. with our international network, is well positioned to tap on these flows. SCBT in particular, is ready to Thank you. support Thai companies with their regionalisation aspirations. As we look forward, we remain bullish about outlook of the Thai economy, as the government pivots Lim Cheng Teck towards higher value-added industries and pledged Chairman to boost investment in transportation and manufacturing infrastructure to enhance the country’s competitiveness. We will continue to support the Thai Kingdom’s effort to develop a vibrant economy and help our clients 6 Standard Chartered Annual Report 2014 7 Message from the President and Chief Executive Officer arranger to price a THB 6.5 billion multi-tranche bond offers significant opportunities for growth. As one of for Lao’s EDL Generation Public Company. The latter the few international banks present in all the GMS two deals were also recognised as Country Deal of markets, SCBT is ideally positioned to facilitate the Year in their respective categories by Asia Money cross-border trade in one of the fastest growing in 2014. regions in the world. We will therefore continue to focus on combining our deep local insights with our international banking expertise to deliver innovative services to help companies grow and tap into the Leveraging our brand potential of the Greater Mekong and broader ASEAN region. One of the key brand highlights for us in 2014 was Lyn Kok the running of the 27th Standard Chartered Bangkok With this, I would like to thank the Board of Directors, President and Chief Executive Officer, Marathon. The event drew a record 40,000 runners Executive Committee, Management and staff for your Thailand and Greater Mekong from 58 countries. Our branding was prominent and support in making 2014 a memorable year for the we successfully utilised multiple channels to raise the Bank. We are proud to have served as a catalyst for visibility of the marathon prior to and after the race. Thailand’s growth for over 120 years and we look The Ministry of Sports and Tourism and Bangkok forward to continuing to do so for many more years Metropolitan Authority were so impressed that they to come. The year 2014 was a memorable but challenging one Standard Chartered Bank (Thai) also retained its AAA have decided to include the marathon in the 2015 for Standard Chartered Bank (Thai). It was the year (tha) credit rating from Fitch Ratings. The underlying Visit Thailand tourism year calendar. They also we marked the 120th anniversary of the fundamentals of the Bank remain sound. We stressed that they would work with us to make the establishment of our first branch in Thailand but it continue to have a diversified asset base, strong Bangkok marathon a major international attraction for was also a year of economic uncertainty and political liquidity position, strong management as well as a Thailand. 2015 marks the 10th year of our association change for the Kingdom. disciplined and proactive approach to risk with the Bangkok Marathon. This is another example Lyn Kok management. This has been recognized by both of what it means to be Here for good. President and Chief Executive Officer, We organised a series of activities in 2014 to celebrate Fitch and other international rating agencies. Thailand and Greater Mekong our contribution to Thailand and our enduring commitment to the Kingdom. It provided us with Looking forward numerous opportunities to engage with clients, recognise our staff and to give back to the community. 2014 business highlights We look ahead to 2015 with much optimism. With our organizational realignment completed, we believe In 2014, Retail Clients revenue was largely driven by that our sharpened strategy coupled with our client 2014 was also a year of transition for Standard the launch of innovative products and services that centric approach to business will drive growth in the Chartered. The Group undertook a comprehensive catered to our clients’ evolving financial needs. The Corporate and Retail segments. Additionally, the review of its long term business strategy, which resulted number of new-to-bank clients continued to rise launch of the Commercial Clients segment in in a number of new initiatives including the refreshing of thanks to the strong take-up of Wealth Management the global Retail Client strategy. Thailand in 2015 will also provide us with and Bancassurance products which saw a 187% yoy opportunities to enhance and expand our reach into increase. We also continued to leverage vendor the mid-sized corporate segment. With our global From a business perspective, lingering political partnerships through credit card promotions, which reach and local expertise, we are well positioned to uncertainty in the first half of 2014 had a dampening helped contribute to stable growth in the Retail become the commercial bank of choice for effect of the economy, which in turn affected local Clients segment. internationalising and fast growing corporates in business sentiment and cross-border trade. This Thailand. I am confident that by working as One resulted in the Bank reporting a consolidated net Corporate and Institutional Clients continued to Bank we will regain our forward momentum and be profit after tax of THB 2,200 million, a 25.5 per cent successfully support Thailand-based corporates in able to deliver solid returns to our shareholders. decline year-on-year. their efforts to grow offshore as demonstrated by 20 per cent increase year-on-year in SCBT’s global 2015 also heralds the launch of the ASEAN Economic Despites these challenges, we were named the Best network revenue.