1

THE BANK’S SUMMARY OF FINANCIAL INFORMATIONBANKTHAI PUBLIC COMPANY LIMITED

(Million Baht)Consolidated The Bank only

At Year End 2005 2004 2003 2005 2004 2003

(Restated) (Restated) (Restated)

TOTAL ASSETS 269,838 231,868 256,870 269,175 231,510 255,919

Lendings (net) 119,657 112,155 102,484 119,219 111,535 101,393

Liabilities 261,273 224,211 250,513 260,690 223,853 249,535

Deposits 194,447 184,516 196,290 194,573 184,559 196,323

Shareholders’ equity 8,565 7,657 6,357 8,485 7,657 6,384

Total interest and dividend income 8,839 6,418 7,937 8,725 6,438 7,970

Total Income 10,420 8,105 9,532 9,925 7,642 8,942

Net earnings (losses) for the year 611 587 (3,936) 611 587 (3,936)

Basic earnings (losses) per share (Baht) 0.48 0.47 (3.22) 0.48 0.47 (3.22)

Book value (Baht) 6.96 6.37 5.99 6.96 6.37 6.01

RATIOS

Return on Assets (%) 0.24 0.24 (1.49) 0.24 0.24 (1.49)

Return on Equity (%) 7.53 8.38 (45.81) 7.57 8.36 (45.86)

Net Profit (%) 5.86 7.24 (41.29) 6.16 7.68 (44.01)

BIS Ratios (%) 8.56 10.99 14.19 8.56 10.99 14.19

Note : Restated financial Statements

22

MESSAGE FROM THE CHAIRMAN

After growing at a rate of 6.1 per cent in 2004, the economy of Thailand slowed to 4.5 per centin 2005. Notwithstanding the deceleration, the performance in 2005 was satisfactory consideringadverse developments that might have at first glance appeared to impinge negatively on the country.These range from the tsunami disaster that struck the coastal areas in the Andaman Sea in December2004 resulting in a sharp decline in the number of tourist arrivals, prolonged drought, second outbreakof avian influenza and persistent unrest in the three southernmost provinces. In addition, large increasein oil prices prompted the Government to abolish diesel subsidies, as consumer price index edged higher.Apart from this, positive contributions to economic growth came from the stable outlook for Thailand’smajor trading partners, a stimulus to exports, higher employment rates and a short-term economicstimulus package introduced by the Government.

A closer examination of economic growth in 2005 shows that an upward trajectory of retailoil prices particularly towards the end of the year sent inflation climbing from 2.7 per cent in 2004 to 4.5per cent in 2005. The trade balance deficit reached US$8,578 million as imports grew by 26.0 per cent,while exports slowed. As a result of these trends, the country’s current account deficit widened to US$3,714million. Notwithstanding this, Thailand’s total international reserves stood at a comfortable level ofUS$52,100 million.

In 2006, the political tension coupled with an upward trend in interest rates and oil prices will likelyhamper the growth prospects of Thailand, dampening private consumption as well as public and privateinvestment. Despite these factors, the stable outlook for Thailand’s major trading partners and the bilateralfree trade agreements between Thailand and various countries as well as the healthy revival of the tourismindustry will be the main growth drivers. Steadier oil prices will also contribute towards fostering economicstability while higher interest rates will help rein in inflation to the 3.5-5.0 per cent range.

I am pleased to say that BankThai succeeded in achieving its business goals in 2005. The annualoperating income totaled Baht 9,925.4 million, growing by Baht 2,283.4 million or 29.9 per centcompared to 2004, as a result of higher interest income and investment returns. Operating expensestotaled Baht 9,099.1 million, increasing by Baht 2,044.0 million or 29.0 per cent over 2004, due tohigher interest expenses on deposit accounts and borrowings as money market interest rates began to

3

move upwards. In addition to this, the Bank set aside provision for bad debt and doubtful accounts in theamount of Baht 215.0 million. As a result, the Bank registered a net profit of Baht 611.3 million, increasingfrom Baht 586.8 million in 2004.

A review of the Bank’s financial position shows that, as of 31 December 2005, the Bank’s totalassets amounted to Baht 269,175.4 million, increasing by 16.3 per cent compared with 2004. At thesame time, total net loans (less allowance for doubtful debts and interest receivables) stood at Baht114,842.8 million, growing by 8.2 per cent, while the total deposits (excluding interbank and moneymarket items) rose by 5.4 per cent to Baht 194,573.3 million.

During the year we continued to ensure that we operate with a growing commitment to goodcorporate governance which is a key ingredient for sustainable growth. Achievements of the Bank werereflected in recognition and awards such as Best Corporate Governance Report Awards from the SETAwards 2005. We constantly strive for improvements in all facets of our operation with a view to reinforcingour future competitiveness by expanding the range and reach of our products and services and deliveringlong-term value to our customers. To support and complement these efforts, the year saw the Bank’snetwork expanding to 112 branches across the country. Furthermore, the retail sales team and all thebranch offices are placing a new and tighter focus on strengthening the Bank’s retail activities. Continuedattention is given to upgrading the quality of our human resources which, in 2005, involved the commissionof a consultancy firm to conduct a special study directed at ensuring the overall effectiveness of theBank’s performance appraisal system. Other initiatives in train include organizing activities for customersand promoting public understanding of various issues of interest. This included, in 2005, the “Proud to beThai with BankThai Tour” and the “MBA World Forum”.

In 2006, the Bank intends to take a more aggressive approach to enhancing our ability to deliver auniversal banking platform to customers once the obligations related to the management of impaired assetsare fulfilled. We will remain committed to introducing changes to our organizational structure in such a waythat will enhance customer satisfaction, ensure the delivery of quality demand-driven products andservices, and address the changing needs of our growing customer base. Continued focus will be given tostrengthening our retail banking activities and expanding our outreach efforts by employing a variety ofchannels, including our business centres and branch offices.

On behalf of the Board of Directors, I wish to record our gratitude to our customers andshareholders, Financial Institutions Development Fund (FIDF), Ministry of Finance, Bank of Thailand,other entities and financial institutions, both at home and abroad, for their continued patronage and supportduring the year. My thanks and appreciation are also due to our staff whose cooperation and dedicationhave contributed meaningfully to the achievement of our goals.

Last but not least, let me assure you that BankThai remains firmly committed to a path ofcontinual improvement as we strive to respond more effectively and efficiently to the needs of ourcustomers. Looking forward, it is my earnest hope that we will continue to enjoy the support andcooperation of our customers, shareholders, the competent authorities and financial institutions, whilebuilding on the dedication of our staff.

Tawee ButsunthornChairman of the Board of Directors

44

BOARD OF DIRECTORS

Mr. Tawee ButsuntornChairman

Mr. Pramon SutivongAdvisor to the Board Of Directors

Dr. Sarasin VirapholIndependent Director

Mr. Dharin DivariIndependent Director

Mr. Techapit SangsingkeoDirector

Mrs. Saowanee SuwannacheepDirector

5

Mr. Phirasilp SubhapholsiriPresident

Dr. Piboon LimprapatIndependent Director

Mr. Pongpanu SvetarundraDirector

Mr. Preecha OonchittiDirector

Mr. Luen KrisnakriDirector

Mr. Thaphop KleesuwanSecretary to the Board of Directors

66

MANAGEMENT COMMITTEE

Mr. Phirasilp SubhapholsiriPresident

Mr. Ekajai TivutanondSenior Executive Vice President

Mr. Surin PremamornkitSenior Executive Vice President

Mr. Phongsuree BunnagExecutive Vice President

Mr. Prasert WangrattanapraneeExecutive Vice President

7

Mrs. Duangphorn SucharittanuwatSenior Executive Vice President

Mr. Manit JeeraditSenior Executive Vice President

Mr. Surachai ChitratseneeSenior Executive Vice President

Mr. Chamnarn WangtalSenior Executive Vice President

Mr. Thaphop KleesuwanSecretary to the Management Committee

88

LIST OF EXECUTIVE OFFICERS

Corporate Banking Group 1Corporate Banking Division 1/1Mr. Chit ChittivaranonEVP. Corporate Banking Division

1/1 Head

Miss Chatsaral AnantakoolFVP. Corporate Banking

Mrs. Siriluch IntuluckVP. Corporate Banking

Mrs. Sananuch PramsanehVP. Corporate Banking

Corporate Banking Division 2/1Mr. Somkiat SethasompopeSVP. Corporate Banking Division

2/1 Head

Miss Sirintip TantiyanoneVP. Corporate Banking

Miss Wanida BuranasajjaVP. Corporate Banking

Mr. Suvat HiminkoolVP. Credit Analysis Section Head

Corporate Banking Division 3/1Mr. Kraisorn PongpunEVP. Corporate Banking Division

3/1 Head

Mrs. Wanida SupanantaroekSVP. Corporate Banking

Mr. Amorn ChulaluksananukulFVP. Corporate Banking

Mr. Chairerk ThongphasookVP. Corporate Banking

Mr. Kanachai WiwatwithayaVP. Corporate Banking

Mr. Boonrat ChuenurajitVP. Credit Analysis Section Head

Corporate Banking Division 4/1Mr. Wiwat VetayanukulEVP. Corporate Banking Division

4/1 Head

Mr. Takashi KusumotoEVP. Japanese Business

Development

Miss Ong-Orn PruthikositFVP. Corporate Banking

(Japanese BusinessDevelopment)

Miss Suteewan SirisawatFVP. Corporate Banking

Mr. Somchai ToemtrisnaFVP. Corporate Banking

Miss Oraphan PhanpairojVP. Corporate Banking

Mr. Somboon KasemsomboonchaiVP. Corporate Banking

Mrs. Supaporn KhuntawichitVP. Credit Analysis Section Head

Corporate Banking Division 5/1Mrs. Wirongrong SukyingEVP. Corporate Banking Division

5/1 Head

Miss Noppamas TamkaongarmFVP. Corporate Banking

Mr. Narong OngartmaneerutFVP. Corporate Banking

Mr. Hasadin ProthienVP. Corporate Banking

Mr. Watson ChansajchaVP. Corporate Banking

Mrs. Pornpilai BurasaiVP. Corporate Banking

Corporate Banking Group 2Corporate Banking Division 1/2Mr. Witchayarat UsuparatSVP. Corporate Banking Division

1/2 Head

Mr. Chamnan NgampojanavongSVP. Corporate Banking

Mr. Pornchai ShardweeFVP. Corporate Banking

Mrs. Orarach IsarangkoonNa Ayudhaya

VP. Corporate Banking

Mr. Wichien JongpanichkulthornVP. Corporate Banking

Mrs. Hathaikorn WichairatanaVP. Credit Analysis Section Head

Corporate Banking Division 2/2Mr. Suwat SummashipvitsavakulEVP. Corporate Banking Division

2/2 Head

Mr. Munin ThampornpipatFVP. Corporate Banking

Dr. Neramit PanchangkakulFVP. Corporate Banking

Mr. Weera PrushyapornsriVP. Corporate Banking

Mr. Vivat ChaijirapornVP. Corporate Banking

Mr. Chamroen AocharoenyingVP. Corporate Banking

Mr. Prasert SuparattanapinantVP. Corporate Banking

Corporate Banking Division 3/2Mr. Samchai BenchapathomrongEVP. Corporate Banking Division

3/2 Head

Mrs. Suchada Na BangchangFVP. Corporate Banking

Mr. Kusol SripaorayaVP. Corporate Banking

Mr. Samran UmasangthongkulVP. Corporate Banking

Mr. Sumrit NuntawadeepisarnVP. Corporate Banking

Corporate Banking Division 4/2Mr. Vorakan DhepchalermEVP. Corporate Banking Division

4/2 Head

Mr. Tara RatanaphiphobSVP. Corporate Banking

Mr. Vongpat BhuncharoenFVP. Corporate Banking

Miss Manussa LertdumrongluckVP. Corporate Banking

Mr. Sorasri SrisumaVP. Corporate Banking

Corporate Banking Division 5/2Mr. Wongkasem KarnthanatSVP. Corporate Banking Division

5/2 Head

Mr. Chalor TaerungreungFVP. Corporate Banking

Mr. Narongchai IndrasuksriVP. Corporate Banking

Mr. Sombat SunantapongsakVP. Corporate Banking

Mr. Sakchai WongchaisuriyaVP. Corporate Banking

Institutional Banking GroupTreasury & Trading DivisionMr. Sutee LosoponkulEVP. Treasury & Trading

Division Head

Treasury Sales DivisionMr. Padej PiroonsitEVP. Treasury Sales

Division Head

Capital Market and TradeDivisionMr. Chamnan WangtalSEVP. (Acting) Capital Market

and Trade Division Head

Structured Credit DivisionMr. Chaiwat MetevelungsunSVP. Structured Credit

Division Head

Privileged Banking DivisionMrs. Duangchai ValaisathienEVP. Privileged Banking

Division Head

International Business andInvestor Services DepartmentMrs. Boonyapak WanichpanSVP. International Business and

Investor Services DepartmentHead

Mrs. Mukda TechakasemVP. International Trade and

Foreign Remittance ServicesSection Head

Miss Srivipa TiradnakornVP. Branch Services

Development Section Head

Mrs. Orauma ShayyaVP. Investor Services Operations

Section Head

Treasury TeamMrs. Kanyaparnch BoonbandarnVP. Treasury Team Head

Mr. Thanyakhet VisavakulVP. Treasury

Trading TeamMiss Veeravan TantiprasutFVP. Trading Team Head

Mr. Apichat SuratanasurangVP. Trading

Mr. Wintu PanpanichVP. Trading

Mr. Sakul JirapanathornVP. Trading

9

Institutional Banking TeamMr. Prawat RakpatapeesuwanFVP. Institutional Banking

Team Head

Mrs. Saisamorn DuangmaneeFVP. Institutional Banking

Team Head

Treasury Product Developmentand Investment Analysis TeamMr. Thawatchai PrommapornVP. Treasury Product

Development andInvestment Analysis

Foreign Exchange Sales TeamMrs. Chalairat SorasuchartFVP. Foreign Exchange Sales

Team Head

Mrs. Kanda HarnprasitthadaVP. Foreign Exchange Sales

Mrs. Chalida PhatcharoenVP. Foreign Exchange Sales

Institutional & DerivativeSales TeamMr. Adisorn ChanpongVP. Institutional & Derivative

Sales Team Head

Miss Sarinthorn SureeVP. Institutional & Derivative

Sales

International Trade Sales TeamMrs. Rujiporn PromchaiVP. International Trade Sales

Team Head

Privileged Banking ProductDevelopment TeamMrs. Janchai AngsamapornFVP. Privileged Banking

Product Development TeamHead

Capital Market TeamMiss Sumalee Boon-A-NanCapital Market Team Head

Privileged Banking Team 1Miss Ladda Somjit

VP. Privileged BankingTeam 1 Head

Privileged Banking Team 2Mrs. Orawan PatimaprakornVP. Privileged Banking

Team 2 Head

Retail Banking GroupRetail Banking DivisionMr. Tada CharukitpaisarnEVP. Retail Banking

Division Head

Miss Amornrat HovatanapibulFVP. Unsecured Loans

Management Section Head

Mr. Wanchai RujipipatvongVP. Unsecured Loans

Management

Mr. Charlee RittimanomaiVP. Business Data Analysis

Miss Areeya PatarabunluaphobVP. Secured Loans Management

Section Head

Branch Services andOperations DivisionMr. Patom AmorndechawatEVP. Branch Services and

Operations Division Head

Retail Credit Operations andE-Banking DivisionMr. Nuekruk BaingernEVP. Retail Credit Operations

and E-Banking Division Head

Domestic Banking OperationsDepartmentMr. Chanin VeerawanFVP. Domestic Banking

Operations Department Head

Mr. Prasartporn LukkanakulVP. Domestic Bill Collection &

Cheque Operations SectionHead

Mr. Wiboon SuphanurakVP. Cash Control & Domestic

Remittance Services SectionHead

Mr. Virat AuppathumpsirikulVP. Branch Operations & A.T.M.

Support Section Head

Electronic Banking ServiceDepartmentMr. Tawich VirangkurSVP. Electronic Banking

Service Department Head

Miss Pimjai KijkongkhajornVP. Cash Management Product

Development Section Head

Mr. Pnickpong ChuntakettaVP. BTiBank & Phone Banking

Channel ManagementSection Head

Mr. Sittichai PrinyanusornVP. ATM & SST Channel

Management Section Head

Retail Credit Operations &Collection DepartmentMr. Surin PakavaleetornSVP. Retail Credit Operations &

Collection Department Head

Mr. Wipach PredawutVP. Retail Loans Operations

Section Head

Mrs. Chadarat PainVP. Retail Collection Section

Business Planning & AnalysisTeamMr. Sutee TantanaFVP. Business Planning &

AnalysisTeam Head

Retail Products ManagementTeamMrs. Pimonporn PoolnapolSVP. Retail Products

Management Team Head

Retail Deposit ManagementTeamMr. Parames PrombureeFVP. Retail Deposit Management

Team Head

Direct Sales Management TeamMr. Khomkit MaromFVP. Direct Sales Management

Team Head

Bangkok Metropolitan BranchManagement TeamMr. Chanon ChotevijitFVP. Bangkok Metropolitan

Branch Management TeamManager

Provincial Branch ManagementTeamMrs. Hathaitip HengtakulFVP. Provincial Branch

Management Team Manager

Branch Service TeamMr. Udomsak LehleakbhaiFVP. Branch Service Team Head

Retail Credit ApplicationProcessing TeamMrs. Kanyika sukhavatFVP. Retail Credit Application

Processing Team Head

Mrs. Jinida LakanathampichitVP. Secured Credit Application

Processing Section Head

Mrs. Juruayporn SuwanasakornVP. Unsecured Credit

Application Processing SectionHead

Fraud Control and InvestigationTeamMr. Wiroj MongkolmahalarpVP. Fraud Control and

Investigation Team Head

Business Support GroupTechnology DivisionPol. Capt. Danai KhaophaisarnEVP. Technology Division Head

Miss Prapaporn TungsaroteFVP. Technology Division

Legal DivisionMr. Paraadorn PhakaphatEVP. Legal Division Head

Asset Management DivisionMr. Songwud BuakhemEVP. Asset Management

Division Head

Technology DevelopmentDepartmentMiss Suree MongkolnchaiarunyaSVP. Technology Development

Department Head

Miss Yupa PipatkornkulFVP. Data Warehouse Section

Head

Mrs. Wilaiporn KasempannaraiVP. Deposit System Section

Head

Mr. Paiboon SiriprasertkulVP. Loans System Section Head

Mrs. Nattaya NipatkusolkitVP. Information System Section

Head

Miss Suwanna NimitsurachartVP. Trade Finance & Treasury

System Section Head

Mr. Prathuang YammontaVP. Delivery Channels System

Section Head

Technology ProductionsDepartmentMr. Paiboon SirichuchninFVP. Technology Productions

Department Head

Mr. Weerarat RatanamungmekarVP. IT Support and Helpdesk

Section Head

Mr. Bundit SirisathienVP. Network Communications

and Security System SectionHead

10

Mr. Chanchai NouyenpolVP. Operating System and

Database DevelopmentSection Head

Mr. Tawee RatanawilaiwanVP. Data Center Operations

Section Head

Credit Operations DepartmentMr. Thiti SupamaneeSVP. Credit Operations

Department Head

Mr. Chookiat YongsomboonVP. Non-Revolving Credit &

Contingent Liability SectionHead

Miss Sutasinee ChuennaitumVP. Revolving Credit,

Restructured Loans & DebtCollections Section Head

Network and OfficeManagement DepartmentMr. Somkeart SrisuwanSVP. Network and Office

Management Department Head

Mr. Manoon TumsanVP. Office Administration

Section Head

Mr. Tanoo WongthanyakornVP. General Administration

Section Head

Mrs. Benjawan SidhibhlakornVP. Branch Network

Section Head

Credit AdministrationDepartmentMr. Suchart ChandsongsangSVP. Credit Administration

Department Head

Mrs. Bulan NitsayanFVP. Credit Facility Contract

Section Head

Mr. Somchai SanaephanVP. Mortgage Registration

Section

Mr. Sanya KichpechrVP. Collateral Appraisal Section

Project Management OfficeMr. Prachawan PraimaneeFVP. Project Management

Office Head

Mr. Padet ChumasaratulVP. Project Coordination and

Application ChangeManagement Section 1 Head

Miss Krittika ChansityanonVP. Project Management

Section 1 Head

Mr. Angkul PaleewongseVP. Project Management

Section 2 Head

Information Security TeamMr. Krisda SribunnakFVP. Information Security

Team Head

Metropolitan Case MonitoringTeamMiss Suvimon PhoponvattanakornVP. Metropolitan Case

Monitoring Team Head

Provincial Case Monitoring TeamMr. Sayan AngsusinghaVP. Provincial Case Monitoring

Team Head

Legal Execution TeamMr. Pongdej WongpoomFVP. Legal Execution Team

Head

Mr. Chalong ViseshomVP. Legal Execution Section 1

Head

Mrs. Vimolrat PattichartVP. Legal Execution Section 2

Head

Miss Rapeeporn VanasantVP. Legal Execution Section 3

Head

Legal Consultant TeamMr. Kitti NetprasatVP. Legal Consultant

Miss Panita ChaowpetVP. Legal Consultant

Non-Performing LoanManagement TeamMr. Boripat KulchartchaiSVP. Non-Performing Loan

Management Team Head

Mr. Sonthit ChukateFVP. Non-Performing Loan

Management Team Head

Mr. Chalermpol DecharitFVP. Non-Performing Loan

Management Team Head

Mr. Suchart TanakulrungsonFVP. Non-Performing Loan

Management Team Head

Mr. Sathien KasettratadFVP. Non-Performing Loan

Management Team Head

Mr. Suwat K.SrisuwanFVP. Non-Performing Loan

Management Team Head

Mr. Sarnanda LekhyanandaFVP. Non-Perfroming Loan

Management Team Head

Mrs. Krongkarn PichayakulVP. Debt Restructuring

Miss Siriluck WongthaiVP. Debt Restructuring

Mrs.Chanyakorn ApiratanapimolchaiVP. Debt Restructuring

Mr. Teerarat NgampatipatpongVP. Debt Restructuring

Non-Performing Assets SalesTeamMr. Thaphop KleesuwanSVP. (Acting) Non-Performing

Assets Sales Team Head

Mr. Arnon LimmongkolVP. Investment

Mrs. Saovanee SiriveshvaravudhVP. Administration

Risk Management and StaffCredit GroupMrs. Panute Na ChiangmaiEVP. Risk Management and

Staff Credit Deputy Group Head

Mr. Somsak ChaiyadejSVP. Risk Management Division

Head

Mr. Anuchat PrakartchaiVP. Credit Risk Portfolio

Management

Market Risk Management TeamMr. Ekachai LokcharoenlarbFVP. Market Risk Management

Team Head

Mrs. Suchada NukornnavaratVP. Market Risk Management

Mr. Narest SatityapongVP. Liquidity Risk Management

Operational Risk ManagementTeamMr. Tawat JitkraisornVP. Operational Risk

Management Team Head

Mrs. Tippawan SrikaewVP. Risk Information

Management

Staff Credit TeamMr. Somchai VongpiyasatitSVP. Staff Credit Team Head

Miss Siriporn SirisinghaFVP. Staff Credit

Mr. Voraphong PattanapibulVP. Staff Credit

Credit Policy TeamMrs. Kampoo VisuthipholFVP. Credit Policy Team Head

Miss Marayat SawetkitithamVP. Credit Policy

Miss Supalak SasalaksananonVP. Credit Policy

Credit Committee SecretaryTeamMr. Damrong BoonmalisonVP. Credit Committee SecretaryTeam Head

Research OfficeMr. Aongarj DivahutaVP. Industry Research &

Corporate Analysis SectionHead

Financial Control DivisionMr. Prasert WangrattanapraneeEVP. Financial Control Division

Head

Financial Accounting andBudgeting DepartmentMiss Pensri PhabhapoteFVP. Financial Accounting and

Budgeting Department Head

Mrs. Vilaiwan TiasiriVP. Assets, Liabilities

Accounting Control SectionHead

Miss Ratana VatanapukdeeVP. Budgeting and Finance

Management Section Head

Management Accounting andInformation DepartmentMr. Kamol RuangmanamongkolFVP. Management Accounting

and Information DepartmentHead

Miss Rattana BenjatachahVP. Management Accounting

Section Head

Mr. Wacharapong SujaridchaiVP. Management Information

Section Head

Mrs. Napaporn PrapapunsiriVP. Data Warehouse Section

Head

11

SOP Management and InternalControl TeamMr. Chaikajohn ThampratheepFVP. SOP Management and

Internal Control Team Head

Tax Management TeamMiss Kanlaya AnochaFVP. Tax Management Team

Head

Finance Core Banking TeamMrs. Teeraporn RatanopasVP. Finance Core Banking Team

Head

Corporate Affairs DivisionOffice of the PresidentMr. Thaphop KleesuwanSVP. Office of the President

Head

Public Relations OfficeMrs. Thapthim SinghaseniSVP. Public Relations Office

Head

Planning OfficeMiss Uthaiwan AnuchitanukulFVP. Planning Office Head

Human Resources ManagementDivisionMr. Phongsuree BunnagEVP. Human Resources

Management Division Head

BUHR Team - Business GroupMr. Pachurn SubhasatienpongFVP. BUHR Team Head -

Business Group

Mr. Suthichai VongrachitVP. BUHR - Business Group

BUHR Team - Operations &Support GroupMrs. Nuntawan SudsatayaFVP. BUHR Team Head -

Operations & Support Group

Mrs. Maliwan WongphoomVP. BUHR - Operations &

Support Group

Human Resources DevelopmentTeamMiss Metta AngtrakoonFVP. Human Resources

Development Team Head

Miss Phailin KomalamisraVP. Human Resources

Development Section Head -Operations & Support Group

Employee Relations TeamMr. Saroj KijjanontFVP. Employee Relations Team

Head

Mr. Sakda PhoomphanVP. Employee Relations

HR Tools Development TeamMrs. Phanit WongphaetFVP. HR Tools Development

Team Head

Internal Audit DepartmentMr. Suthanai PrasertsanSVP. Internal Audit Department

Head

Mrs. Malini ApiwatananontFVP. Internal Audit Section Head

Mrs. Yuphadee IntharakasetVP. Head Office Audit Unit Head

Mr. Somkiat JitvutthichodVP. Credit Audit Unit Head

Mr. Santiporn WongpanchalertVP. Subsidiaries Audit Unit Head

Mr. Boonkiat EkwanichVP. Information Technology and

Risk Management SystemAudit Section Head

Mrs. Nantiya MesookVP. Risk Management System

Audit Unit Head

Compliance and Credit ReviewTeam

Mr. Pattanasak ChermchansophonFVP. Compliance and Credit

Review Team Head

Miss Dussadee PhothongVP. Credit Review Section Head

Mr. Parkpoom BunchasakVP. Compliance Section Head

Business CenterCorporate Banking Group 1Business Center - SathonMr. Pakorn PrechapornManager

Business Center - ChonburiMr. Preecha KaroonvattanaManager

Business Center - LadpraoMrs. Laval SinghamanyManager

Business Center - JawaradMr. Parkpoom HemarakshaManager

Business Center - RajadamnernMr. Suriyon ManawapatManager

Business Center - YannawaMr. Sunk SapphansaenManager

Business Center - Bangna-TradMr. Passapol SirikulbodeeManager

Business Center - BangnaMr. Kraiwut DoltadaManager

Business Center - New PhetburiMr. Chaowalert PunjawasaruchManager

Business Center - HueykwangMr. Sakolpat WongchartluangManager

Business CenterCorporate Banking Group 2Business Center - BangbonMiss Kandate KanchanomaiManager

Business Center - NongkhaemMr. Chaiyan ArunrungsawatManager

Business Center - RangsitMr. Bunjhob SiriratanakumwongManager

Business Center - NgamwongwanMr. Suphavich DeewongphaibulManager

Business Center -CharansnitwongseMr. Wittaya NuntankkomManager

Business Center - SamutsakornMrs. Duangporn WiwattanawarangManager

Business Center - SuratthaniMr. Cheerapat PrawatManager

Business Center - HatyaiMr. Thongchai WassanarungruengsukManager

Business Center - PhuketMr. Songwuth ThephabutrManager

Business Center - PhetburiMr. Pradit LimsawatManager

Business Center - Chiang MaiMr. Sakchai WongchaisuriyaManager

Business Center - NakhonsawanMr. Somphop PhuangphongManager

Business Center - KhonkaenMr. Uthai HomwantaManager

Business Center - Nakhon RatchasimaMr. Thanadej KanokyurapanManager

Business Center - Ubon RatchathaniMr. Veerachai PuranasuthemmongkolManager

Business Center - Pra KakhonSi AyutthayaMr. Anugul PhinijnaiManager

1212

MANAGEMENT’S DISCUSSION AND ANALYSISOF THE YEAR’S RESULTS

1. RESULTS OF OPERATIONOVERVIEW OF RESULTSFor the year ended 31 December 2005, the Bank reported a net profit of Baht 611 million or Baht 0.48 per share, compared

with a net profit of Baht 587 million or Baht 0.47 per share in 2004. The Bank attributed this increase to the growth in lending,debt investments, leaseholds and finance leases, as well as higher yield maintenance income.

(a) A SUMMARY OF THE BANK’S INCOMEAs reflected in the consolidated financial statements as at 31 December 2005, the Bank’s income amounted to Baht

10,420 million, increasing by Baht 2,316 million or 28.57 per cent over the comparable figure of the previous year. Meanwhile,the Bank-only financial statements showed that as at 31 December 2005, the Bank’s income stood at Baht 9,925 million,growing by Baht 2,283 million or 29.88 per cent compared with 2004. The particulars are as follows:

The Bank’s income consists principally of interest and dividend income (including the yields generated under theGain/Loss Sharing and Yield Maintenance Agreement), as well as non-interest income. In accordance with the consolidatedfinancial statements as at 31 December 2005, interest and dividend income accounted for 84.83 per cent of the Bank’s totalincome. Specifically, for the years 2005 and 2004, the Bank’s interest and dividend income amounted to Baht 8,839 million andBaht 6,419 million respectively. As a result, the Bank’s interest and dividend income increased by Baht 2,421 million or 37.72per cent in 2005 compared with the previous year.

The Bank-only financial statements showed that for the year ended 31 December 2005, interest and dividend incomerepresented 87.90 per cent of the total income. Specifically, for the years 2005 and 2004, the Bank’s interest and dividendincome amounted to Baht 8,725 million and Baht 6,438 million respectively. As a result, in 2005, the Bank posted an increasein interest and dividend income at Baht 2,287 million or 35.52 per cent compared with a year earlier.

In the consolidated financial statements, the Bank’s non-interest income for the year ended 31 December 2005accounted for 15.17 per cent of the total income. Specifically, for the years 2005 and 2004, the Bank’s non-interest incomeamounted to Baht 1,581 million and Baht 1,686 million respectively. As a result, the Bank’s non-interest income decreased byBaht 105 million or 6.24 per cent from the corresponding period one year earlier, due to a decline in profit from currencyexchange transactions.

The Bank-only financial statements showed that for the year ended 31 December 2005, the Bank’s non-interest incomerepresented 12.10 per cent of the total income. Specifically, for the years 2005 and 2004, the Bank’s non-interest incomeamounted to Baht 1,201 million and Baht 1,204 million respectively. This reflected a drop in non-interest income of Baht3 million or 0.26 per cent in 2005 compared with 2004.

(b) SUMMARY OF CAPITAL FUNDS AND OPERATING EXPENSESIn the consolidated financial statements, the Bank’s capital funds and operating expenses (incorporating loss and doubtful

loans, corporate income tax and minority interests) as at 31 December 2005 amounted to Baht 9,809 million, increasing byBaht 2,291 million or 30.48 per cent over a year earlier. By the same token, the Bank-only financial statements showed that,in 2005, the Bank’s capital funds and operating expenses stood at Baht 9,314 million, growing by Baht 2,259 million or 32.02per cent compared with 2004. The particulars are as follows:

The Bank’s capital funds structure and operating expenses (incorporating loss and doubtful loans, corporate income taxand minorty interests) comprise both interest and non-interest expenses, with interest expenses representing the largest share.In the consolidated financial statements for the year ended 31 December 2005, the Bank’s interest expenses accounted for51.20 per cent of the total expenses. Specifically, for the years 2005 and 2004, the Bank’s interest expenses amounted to Baht5,022 million and Baht 3,744 million respectively. As a result, the Bank’s interest expenses grew by Baht 1,278 million or34.15 per cent in 2005, as a result of an increase in interest-bearing deposits and borrowings.

The Bank-only financial statements showed that for the year ended 31 December 2005, the Bank’s interest expensesaccounted for 53.91 per cent of the total expenses. Specifically, for the years 2005 and 2004, the Bank’s interest expensestotaled Baht 5,022 million and Baht 3,745 million respectively. As a result, the Bank reported an increase of Baht 1,277 millionor 34.09 per cent in interest expenses in 2005 compared with a year earlier.

In the consolidated financial statements, the Bank’s non-interest expenses (incorporating loss and doubtful loans,corporate income tax and minority interests) as at 31 December 2005 accounted for 48.80 per cent of the total expenses.Specifically, for the years 2005 and 2004, the Bank’s non-interest expenses amounted to Baht 4,787 million and Baht 3,774million respectively. As a result, the Bank posted an increase of Baht 1,013 million or 26.84 per cent in 2005 compared withthe corresponding period a year earlier due to an increase in lending and the expanded scope of related services, as well asloan-loss provisioning.

The Bank-only financial statements showed that for the year ended 31 December 2005, the Bank’s non-interestexpenses (incorporating loss and doubtful loans, corporate income tax and minority interests) represented 46.09 per cent of thetotal expenses. Specifically, for the years 2005 and 2004, the Bank’s non-interest expenses amounted to Baht 4,292 millionand Baht 3,310 million respectively. As a result, the Bank posted an increase of Baht 982 million or 29.67 per cent in 2005compared with the corresponding period a year earlier.

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(c) NET PROFIT (LOSS)

The Bank’s audited operating results showed that for the years ended 31 December 2005 and 2004, the Bank’s netoperating profit amounted to Baht 611 million and Baht 587 million respectively. The growth in net profit in 2005 mainly stemmedfrom an increase in lending, debt investments, hire purchase and financial lease contracts, while an increase in capital fundsresulted from deposits, borrowings, loan-loss provisioning and expenses incurred in extending the range of lending products andservices.

(d) RATE OF RETURNS TO SHAREHOLDERS

In 2005, the Bank did not make any dividend payments due to its previous accumulated loss. In accordance with thePublic Company Limited Act B.E. 2535 (AD 1992) and the Bank Charter, dividend distribution depends primarily on the Bank’soverall profitability without accumulating any losses. Furthermore, the Bank of Thailand requires the Bank to write off all worthlessor irrecoverable assets from the accounts before paying dividends. For the year ended 31 December 2005, the Bank registeredsome operating profit but posted accumulated loss of Baht 2,849 million.

2. THE BANK’S FINANCIAL POSITIONASSETSThe Bank’s business profitability depends primarily on its interest-earning assets, principally loans (loans and interest

receivables), interbank and money market items, investments and securities purchased under resale agreements.According to the Bank-only financial statements as at 31 December 2005, the Bank’s loans increased by Baht 7,400 million

or 5.69 per cent to Baht 137,449 million, while interbank and money market items declined by Baht 1,403 million or 9.93per cent to Baht 12,726 million. At the same time, the Bank’s securities purchased under resale agreements decreased byBaht 800 million or 26.67 per cent to Baht 2,200 million, while investments grew by Baht 27,499 million or 72.98 per cent toBaht 65,179 million. As a result, the Bank’s total assets amounted to Baht 269,175 million, increasing by Baht 37,666 millionor 16.27 per cent.

The consolidated financial statements showed that, as at 31 December 2005, the Bank’s loans increased by Baht7,185 million or 5.40 per cent to Baht 140,167 million. At the same time, interbank and money market items declined by Baht1,251 million or 8.88 per cent to Baht 12,829 million, while securities purchased under resale agreements dropped by Baht800 million or 26.67 per cent to Baht 2,200 million, and investments increased by Baht 27,006 million or 72.36 per cent toBaht 64,329 million. As a result, the Bank’s total assets amounted to Baht 269,838 million, increasing by Baht 37,969 millionor 16.38 per cent.

ASSET QUALITY

(a) LOANSCONCENTRATION OF LOANS

As at 31 December 2005, top beneficiaries of the Bank’s loans were from the sectors of manufacturing with a 30.19per cent share of the total portfolio, followed by commercial business, 18.98 per cent, and real estate, 18.27 per cent. In thisrespect, loans extended to the manufacturing sector amounted to Baht 41,788 million, increasing by Baht 3,547 million or 9.28per cent compared with the corresponding period a year earlier. Loans extended to commercial business totaled Baht26,271, declining by Baht 1,479 million or 5.33 per cent, followed by real estate at Baht 25,292 million, dropping by Baht 281million or 1.10 per cent compared with the corresponding period a year earlier.

In pursuance of its lending policy, the Bank continues its commitment to distribute loans among diverse sectors with a viewto avoiding over-concentration and emphasizing lending to priority economic sectors with good growth trends and potential,particularly large, medium, small and retail enterprises.

The majority of loans carried maturities of more than one year, accounting for Baht 100,068 million or 72.28 per cent ofthe total portfolio, of which loans exceeding Baht 10 million accounted for Baht 117,415 or 84.82 per cent.

(b) OUTSTANDING LOANS

As at 31 December 2005, the Bank’s outstanding loans (excluding accrued interest receivable, including loans tocommercial banks) amounted to Baht 138,436 million. Of this, loans to juristic persons accounted for Baht 113,279 million or81.83 per cent of the outstanding portfolio, while personal loans represented Baht 26,157 million or 18.17 per cent.

As at 31 December 2005, loans extended to the top ten borrowers represented Baht 11,248 million or 8.13 per centof the outstanding portfolio, with none of them accounting for more than 10 per cent. This has contributed towards limiting theBank’s exposure to credit risk as no one borrower could have a major effect on the Bank’s financial position in the event of default.

(c) CLASSIFICATION OF ASSETS

As at 31 December 2005, the Bank’s classified assets (including accrued interest receivable, excluding financialinstitutions) amounted to Baht 141,825 million, of which loan-loss provisions accounted for Baht 22,425 million. As a result,the Bank-only financial statements showed that, as at 31 December 2005, the ratio of the Bank’s loan-loss provisions (includingaccrued interest receivable, excluding financial institutions) accounted for 15.81 per cent compared with 17.48 per cent in 2004.By the same token, according to the consolidated financial statements as at 31 December 2005, the ratio of the Bank’s loan-lossprovisions (including accrued interest receivable, excluding financial institutions) accounted for 17.14 per cent compared with18.81 per cent in 2004.

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As at 31 December 2005, the Bank’s substandard loans collectively classified as Non-Covered Assets Pool (NON CAP)amounted to Baht 91,614 million, including accrued interest receivable, excluding financial institutions. In this respect, the Bankset aside Baht 4,701 million in loan-loss provisions as required by the Bank of Thailand. At the same time, substandard loanscollectively classified as Covered Assets Pool (CAP), including accrued interest receivable, excluding financial institutions,accounted for Baht 50,211 million while loan-loss provisions amounted to Baht 17,724 million. The particulars are presentedin the table below.

Loans and accrued Loan valuation after Provisioning rate Book valueinterest receivable deduction of security on the basis of BOT’s (millions(millions of baht) (millions of baht) requirement (per cent) of baht)

Non-Covered Assets Pool (NON CAP):Classified as passed 83,130 37,097 1 357Classified as special mention 1,063 350 2 7Classified as substandard 803 273 20 240Classified as doubtful 1,745 779 50 592Classified as loss 4,873 2,699 100 3,112

Total 91,614 41,198 4,308General allowance for potentially irrecoverable loans 393

Loan-loss provisions for NON CAP 4,701Loans classified as CAP (1) 50,211 37,282 17,724

Total 141,825 78,480 22,425(1) Such loans did not call for any classification or additional provisions for loss, as they fell within the scope of the Gain/Loss Sharing and Yield

Maintenance Agreement.

In order to effectively monitor and control debt service payments by customers, the Bank maintains a database of debtinformation which is updated at the end of every month. The database records payment schedules and can be used to retrieveinformation on debt-service obligations. In this connection, delinquent loans are grouped under four main categories, namely:(a) 1-3 months past due; (b) 3-6 months past due; (c) 6-12 months past due; and (d) more than 12 months past due. Thedatabase also provides a tool for classifying loans and predicting trends in NPLs.

(d) NON-PERFORMING LOANS (SUBSTANDARD LOANS)

As at 31 December 2005, the Bank’s non-performing loans collectively classified as NON-CAP accounted for Baht7,011 million or 5.06 per cent of outstanding portfolio (comprising the principal plus financial institutions). The classificationembodied in the Bank of Thailand’s notification of 16 January 2003 defines non-performing loans as substandard, doubtful andloss, and includes doubtful loans that have been written off then transferred back to the account.

(e) CRITERIA FOR RECOGNIZING REVENUEINTEREST AND DISCOUNT ON LOANSRevenue recognized as having been earned consists principally of accrual basis revenue based on the outstanding

principal amount. With respect to defaulted loan which payment of principal or interest is more than three months in arrears,interest is not recorded as income on an accrual basis but on a cash basis. In pursuance of the directive of the Bank of Thailand,interest accruing on such defaulted loan and reported as income is transferred out of the account.

Interest on restructured loans is also recognised on an accrual basis except when the loan has yet to comply with therestructuring requirements. In this respect, interest is recorded as income on a cash basis until compliance has been demonstratedfor at least three consecutive months or by three consecutive installments, whichever is longer.

LIABILITIES AND SHAREHOLDERS’ EQUITYIn the Bank-only financial statements, the Bank’s liabilities as at 31 December 2005 amounted to Baht 260,690 million,

increasing by Baht 36,837 million or 16.46 per cent over the corresponding period a year earlier. Meanwhile, the consolidatedfinancial statements showed that, as at 31 December 2005, the Bank’s liabilities stood at Baht 261,273 million, growing by Baht37,061 million or 16.53 per cent.

As reflected in the Bank-only financial statements, shareholders’ equity as at 31 December 2005 amounted to Baht8,485 million, growing by Baht 828 million or 10.82 per cent compared with 2004. This was attributable to an increase in netprofit of Baht 611 million as well as higher gain on revaluation of securities of Baht 217 million. At the same time, in theconsolidated financial statements, shareholders’ equity stood at Baht 8,565 million, increasing by Baht 908 million or 11.86per cent compared with 2004.

The consolidated financial statements and the Bank-only financial statements both showed that, as at 31 December2005, the Bank’s off-balance-sheet commitments totaled Baht 349,759 million, increasing by Baht 217,630 million or 164.71per cent over the corresponding period a year earlier, as a result of an increase in derivatives activities.

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3. LIQUIDITYAs presented in the consolidated as well as the Bank-only financial statements, the Bank’s cash flow for the year 2005 was

as follows:The Bank’s net cash flow received from (or expended for) its operations amounted to Baht 26,677 million and Baht 27,142

million, increasing by Baht 27,578 million and Baht 27,410 million respectively compared with 2004, as a result of an increasein deposits.

Similarly, the Bank’s net cash flow received from (or expended for) its investment activities totaled Baht (26,093) million andBaht (26,660) million respectively, growing by Baht 26,610 million and Baht 27,148 million compared with 2004, due to anincrease in investment securities.

At the same time, the Bank’s net cash flow received from (or expended for) its fund-raising activities amounted to Baht (100)million and Baht (0) million respectively, declining by Baht 815 million and Baht 110 million compared with 2004.

Against that background, the difference between the Bank’s net cash flow received from (or expended for) its operations andthe net cash flow received from (or expended for) its fund-raising activities and investment securities did not have any materialimpact on the Bank’s cash-in-hand and liquidity situation at the end of the accounting period. As a result, the Bank was able tomeet the minimum requirement prescribed by the Bank of Thailand.

RELATIONSHIP BETWEEN SOURCES AND USES OF FUNDSThe Bank derives its funds from two major sources, namely deposits and borrowings while credits make up the bulk of the

Bank’s expenditure. As at 31 December 2005, the Bank’s deposits totaled Baht 1,108 million, its borrowings, Baht 24,390million, and its credit, Baht 135,251 million. This may be divided into maturity periods as presented in the table below.

(millions of baht)Maturity Period Credit a/ % Deposits a/ % Borrowings a/ %

Payment demanded - - 51,501 24.85 7,748 18.64Up to one year 38,368 27.72 145,296 70.11 28,357 68.21Greater than one year 100,068 72.28 10,440 5.04 5,470 13.15Total 138,436 100.00 207,237 100.00 41,575 100.00a/ Including interbank and money market items.

A closer look at the above table reveals a mismatch between the Bank’s sources and uses of funds. This was primarily dueto the action taken by the Bank from end-2001 to end-2005 to transfer impaired assets in the amount of Baht 98,126 millionto the Thai Asset Management Corporation (TAMC). In this respect, the Thai Asset Management Corporation Decree B.E. 2544(AD 2001) requires all financial institutions to transfer impaired assets as well as any other rights over the property being held ascollateral for debt repayments with respect to such impaired assets to the TAMC within the prescribed conditions and time-limit.Notwithstanding this, the Bank was able to achieve higher growth in lending and debt investments which contributed towardsgenerating revenue and, at the same time, minimizing the mismatch between sources and uses of funds.

The Bank derives its funds from customer deposits which may be categorized as follows:(millions of baht)

2005 2004 2003

Categories of Deposit Amount % Amount % Amount %Current and savings deposits 51,501 24.85 57,686 29.42 45,158 22.06Long-term deposits 155,737 75.15 138,422 70.58 159,506 77.94Total 207,238 100.00 196,108 100.00 204,664 100.00

Over the past three years, efforts have been exerted by the Bank to reduce deposit expense by lessening the share oflong-term deposits and increasing the share of current and savings deposits.

MAINTENANCE RATIOSCAPITAL TO RISK ASSETS RATIOAs at 31 December 2005, the Bank’s capital to risk assets ratio amounted to 8.56 per cent, declining by 10.99 per cent from

2004. Notwithstanding this, the Bank was able to satisfy the regulatory minimum set by the Bank of Thailand at 8.5 per cent.

LIQUID ASSETS RATIOThe Bank of Thailand requires all commercial banks to maintain the minimum liquid assets ratio at not less than 6 per cent of

total deposits and offshore borrowings with less than one-year maturity. At end-2005, the Bank’s total liquid assets amountedto Baht 25,034 million while its loan-to-deposit ratio stood at 66.80 per cent. At the same time, the ratio of liquid assets to totalassets amounted to 9.30 per cent while the ratio of liquid assets to total deposits stood at 11.37 per cent, thereby satisfying theregulatory minimum.

INVESTMENT COSTIn 2005, the Bank invested 18,010,000 million shares from BT WorldLease Co. Ltd. at a total cost of Baht 247,637,500.

The acquisition of 75 per cent of the issued and paid-up share capital of BT WorldLease converted the Company into one of theBank’s subsidiary companies. In addition, the Bank invested 2,499,993 ordinary shares at Baht 10 par each from Sathorn AssetManagement Co. Ltd., thereby acquiring 100 per cent of the Company’s issued and paid-up share capital. This policy measuremarked an important milestone in consolidating the Bank’s presence in the asset management market. Besides those alreadymentioned, the Bank has no further plans or policy measures aimed at increasing investment. Instead, the Bank will continue todirect its efforts towards converting debt into equity through the restructuring process.

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SOURCES OF CAPITALCapital structureThe Bank’s capital structure consists of 83.29 per cent deposits and 16.71 per cent borrowings as well as domestic and

foreign bonds.

THAILAND’S ECONOMIC CONDITIONS AND OUTLOOKOVERVIEW

After growing at a rate of 6.1 per cent in 2004, the economy of Thailand slowed to 4.5 per cent in 2005. At least four factorscontributed to the slowdown. The tsunami disaster that struck six southern provinces in December 2004 resulting in tourismslump, persistent unrest in the three southernmost provinces, recurrent outbreak of avian influenza, and prolonged drought.External factors contributing to the downturn included steeply rising oil prices which subsequently prompted the Government toabolish diesel subsidies. However, the stable outlook for Thailand’s major trading partners combined with a stimulus to exportsenabled export growth to gather some momentum. In addition to this, an economic stimulus package was introduced by theGovernment to mitigate the adverse impact on growth.

A closer examination of economic growth in 2005 shows that an upward trajectory of oil prices nudged inflation up from 2.8per cent in 2004 to 4.5 per cent in 2005. Imports grew at a relatively high rate while exports slowed. As a result of these trends,the country’s trade deficit widened and the current account turned negative following several years of positive balance.

PRIVATE CONSUMPTION GROWTHGrowth in private consumption tapered off slightly from 5.9 per cent in 2004 to 4.6 per cent in 2005, as the prices of certain

consumer goods and services edged higher due to an upward trend in oil prices and interest rates, particularly towards the end ofthe year, in combination with household debt burdens. Notwithstanding this, private consumption growth has been sustained bythree broad factors: higher employment, an increase in farm income and a short-term economic stimulus package introduced bythe Government.

INVESTMENTIn 2005, investment slowed in tandem with weakening business confidence and a drastic increase in investment costs.

Despite the slowdown, growth in public and private investment was held at 10.8 per cent compared with 13.8 per cent in 2004,primarily as a result of high capacity utilization particularly in certain industries, leading to production growth. Other contributoryfactors included continued expansion of the Thai economy and growth in public investment, resulting from the expedited release ofbudgetary allocations to stimulate the economy.

EXTERNAL SECTORIn 2005, Thailand’s trade deficit widened to US$8,578 million compared with a trade surplus of US$1,460 million in 2004.

As a result, trade balance turned negative for the first time in eight years, occasioned primarily by steep increases in oil priceswhich, in turn, led to a significant rise in the import growth rate of 26.0 per cent. Exports began to strengthen towards the latterpart of the year but still registered a slowdown in 2005. In the face of trade deficit and tourism slump induced by the tsunamidisaster, the country’s current account posted a deficit of US$3,714 million. Notwithstanding this, Thailand’s balance of paymentsrecorded a surplus of US$5,422 million, as a result of inflows of foreign direct investment and the country’s international reserveswhich held steady at US$52,100 million.

MONETARY SECTORCommercial bank interest rates readjusted upwards during the second half of 2005. The four major commercial banks raised

the fixed deposit rates for terms ranging between 3 and 24 months by another 1.75-2.25 per cent and the loan rate was up byanother 0.75-1.25 per cent, in accordance with the monetary policy of the Bank of Thailand (BOT) to raise the 14-dayrepurchase rate and issue BOT bonds, as a means of absorbing liquidity. Meanwhile, bank credits expanded by 8.1 per cent whiledeposits increased by 8.4 per cent.

OUTLOOK FOR 2006Despite the stable outlook for Thailand’s major trading partners and bilateral free trade agreements between Thailand and

various countries as well as the healthy revival of the tourism industry, adverse developments in the political arena will impingeupon the growth in private consumption and public & private investment. In addition, an upward trajectory of interest rates and oilprices is expected to continue into 2006.

Economic stability is likely to improve, primarily as a result of steadier oil prices, with tight monetary policy expected to rein ininflation to the 3.5-5.0 per cent range in 2006 compared with 4.5 per cent in 2005.

Interest rates are largely on an upward path with commercial banks expected to raise the rates further by another 1.0-1.5percentage points in response to both external and domestic pressures, including further interest-rate increases imposed by theUS Federal Reserve. In addition, the 14-day repurchase rate is forecast to adjust further upward while reduction in liquidity in thebanking system is expected.

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BANKTHAI’S MISSION, VALUE AND VISIONTHE BANK’S POLICY AND OVERVIEW OF DEVELOPMENTS IN 2005

In 2005, the Bank continued with the thrust on expanding the scope, reach and effectiveness of its business operations witha view to enhancing its ability to deliver a universal banking platform to customers. As an important step in that direction, the Bankintroduced changes to its organizational structure and business processes, with focus on strengthening retail banking activities andensuring the delivery of a full range of quality demand-driven products and services. Many of the initiatives to support theBank’s expansion and competitiveness are already in train and included, in 2005, the following highlights:

a) Life and non-life insurance. BT Insurance Co. Ltd., a subsidiary of the Bank, offers both life and non-life insuranceproducts. As part of the strategy to reinforce its market presence in the insurance arena, the Bank signed a Memorandum ofUnderstanding with Millea Life Insurance (Thailand) Public Co. Ltd., a subsidiary of Millea Asia Pte. Ltd., a leading player inthe Japanese insurance market. In this process, Millea Asia acquired 5 per cent of BankThai shares with BankThai, in turn,purchasing 30 per cent of Millea Life ordinary shares. This alliance marked an important milestone in the Bank’s efforts to betterserve its customers, while generating income and enlisting the support of a strategic shareholder.

b) A new and tighter focus is being given to extend retail banking activities, involving the introduction of new products such asPersonalCash - a multi-purpose term loan with no collateral or personal guarantee, repayable in installments, and carries intereston a reducing balance basis.

c) A fuller range of products and services has been put in place to increase business efficiency and capturing revenue. Thisincludes offering a wide spectrum of investor services that best meet customer needs by serving as bondholders’ representative,custodian, trustee, registrar and paying agent.

d) In this era of digital convergence, emphasis continues to be given to address customer needs by extending the rangeof cash management options and services that optimize the use of information and communication technology. This involvesupgrading the existing products and services, extending service delivery channels and introducing new electronic banking productsand services, including:

1) “Power Pay” enables a client to manage his/her accounts payable efficiently through, for example, the issuance ofBankThai cheques, instant online fund transfer, payroll services, delivery of shareholder returns, and loan repayment. Power Paycomes with the following array of features and benefits:

ë “Pay in Pack” can help fulfill nationwide banking needs of customers. It allows for safe and efficient electronic fundtransfers between banks including BankThai, within a secured environment.

ë “Smart Cheque” is ideal for clients preferring to pay by cheques. It allows for instant BankThai cheque issuance andonward delivery within a secure electronic environment, meaning savings in time and efforts.

ë The Bank and PCC Processing Group Co. Ltd as well as its member banks, namely, Bangkok Bank Public Co. Ltd.,Kasikornbank Public Co. Ltd. and Thai Military Bank Public Co. Ltd., have teamed up to offer real-time electronic payment servicethrough “ePAY”. With the support of “ePAY”, customers are provided with the platform to transfer funds online into the account ofbeneficiaries from anywhere in the world, within a secure PKI environment. In 2005, the Bank reached an agreement with anumber of government offices, namely Customs Department (to facilitate the payment of customs duty) and Industrial EstateAuthority of Thailand, in addition to the existing arrangement with the Revenue Department (to facilitate electronic/online taxpayment by business operators).

ë Wire@Wish allows for instant over-the-counter transfer of cash between any branch of BankThai and any branch ofBangkok Bank Public Co. Ltd., Kasikornbank Public Co. Ltd. and Thai Military Bank Public Co. Ltd. at lower costs. Wire@Wishprovides real-time results and is available to account holders as well as the general public.

ë BAHTNET is an ideal way of transferring large sums of money between banks and making payments to governmentauthorities; it provides real-time results.

2) “Power Collect” facilitates the collection of payment for goods and services, as well as cheque clearance. It has thefollowing two options:

ë “Cheque in Time” provides for fast and efficient cheque clearance, and also allows for the acceptance of post-datedcheques, or PDC. Cleared funds are deposited into the receiving account within three business days of the due date.

In 2005, the Bank extended the coverage of such service to allow juristic persons to deposit post-dated cheques into theirbank account on the date shown on the cheque to avoid clearing delays. Clearing results are transmitted electronically to customerto facilitate the monitoring of their cash flows.

ë “Direct Debit” offers a convenient payment method for both service providers or vendors and consumers. At theinstruction of the customer, the amount is debited from the account for the payment of, for example, utility bill, mobile phone bill,instalment, insurance premium, etc.

ë “Bill Payment” enables customers to pay their bills or their suppliers; it comes with the following options:“Counter Payment” - payment can be made over-the-counter at any branch of BankThai nationwide.“BT Phone Banking” - payment can be made round the clock by dialing 0-2626-7777.“ATM” - payment can be made round the clock through the ATM.“BTiBank” is a facility that allows customers to make payments via the Internet.

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3) The Bank offers the following electronic means of communication and information exchange within a secure environment:ë “BTiBank” provides customers with cost-effective Internet banking solutions via www.btibank.com or www.btibank.co.th.

To enjoy the options provided by “BTiBank” the customer will need an account with BankThai and an assigned User ID and PIN.“BTiBank” features account access, fund transfers between different accounts or between banks via, for example, “Pay in Pack”,Wire@Wish and “BAHTNET”. It also facilitates the payment for goods and services such as the payment of credit card debt,mobile phone bill, instalment and utility bill. Once the transaction is complete, the information is sent back to the customer viae-mail. Other banking transactions available on “BTiBank” include reordering cheque books, tracking cheque status and stoppingcheque payment, including statement request and balance inquiry. SSL protocol is used to provide security and privacy overthe Internet. “BTiBank” has been designed to handle complex financial transactions and, therefore, is an ideal tool for largecorporations. Specifically, it allows for the electronic integration of a range of services, from approval of financial transactions tomanaging subsidiaries. The Help Desk which is set up at BankThai Care Centre, ISO 9001:2000-certified, can be reached ontelephone No. 0-2626-7777 and enter - 0 -.

ë “BT Speed Link” offers customers the following options: “Pay in Pack”, “Smart Cheque” and “Direct Debit”. It facilitatesa high speed link directly between customers and the Bank within a secure electronic environment and represents an ideal tool forjuristic persons having to deal with complex approval processes.

e) Organizational Structure and Human Resources DevelopmentIn 2005, the Bank commissioned a consultancy firm to study the Bank’s performance appraisal system with a view to

identifying Key Performance Indicators (KPIs) that can function as benchmarks that the Bank can use to align staff performanceand organizational goals, while creating a culture of rewarding staff for excellence in performance. Another important undertakingduring the year was the revision of the remuneration structure for the Bank and its subsidiaries, as well as the development of astandard welfare package for the staff of new subsidiary companies that reflect prevailing labour market conditions.

During the fourth quarter of 2005, the Bank restructured its organization into two distinct functions - business functionsand support functions. Business functions are clustered according to customer types (corporation/institution/retailer) and type ofbusiness (product management/sales/service channel/operation). The goal is to strengthen the Bank’s capability to develop andput in place products and services that satisfy the diverse and changing needs of customers.

As at 31 December 2005, total personnel in the Bank numbered 2,479. Of that figure, 940 are stationed at variousbranch offices and 1,539 at head offices. In terms of recruitment, the selection process seeks to draw candidates from a varietyof backgrounds embodying various disciplines which are required for the Bank’s functions, taking into account the candidate’sknowledge, skills, experience and competence.

f) Research and Development ActivitiesThe Research Office remains fully committed to extend and underpin its research and analytical capabilities to address the

evolving needs of the Bank’s own offices, customers and subsidiary companies. Continued focus is on enhancing the publicationof technical and research materials related to the economy, business and other issues of interest, as well as on producingand disseminating economic indicators regularly via various channels. Furthermore, the Research Office continues to play acomplementary role in generating revenue for the Bank by producing research papers for sale to outside parties. This initiativecontinues to capture the interest of various organizations and the general public.

In 2005, the Research Office teamed up with subsidiary companies to publish a journal entitled @ Money Corner.The journal features articles related to the economy, finance and investment deemed to be of interest to the Bank’s own customersand those of its subsidiary companies as well as other interested parties. In addition, the Research Office released its annualpublication, highlighting ways of reviewing and readjusting strategy and turning challenge into opportunity in the face of steeplyrising oil prices and an upward trend in interest rates. The publication has been disseminated to the Bank’s own offices andcustomers as well as the customers of its subsidiary companies and other interested parties.

g) Corporate ImageThe Bank continues to seek out and take tangible steps to enhance its corporate image and maximize customer outreach.

In this process, a wide range of undertakings is tailored to address the needs of specific customer groups, with event marketinghaving been cost-effectively integrated into the Bank’s strategic marketing programmes. The events are built around the theme“Proud to be Thai”, a theme which directly reflects the stance and image of BankThai. As a Thai commercial bank, BankThaiconstantly looks for opportunities to build up our national identity and pride. In 2005, the following two events were organized:

1. The Fifth “Bankthai...Proud to be Thai” Charity Concert was held at Thailand Cultural Centre on 23 August 2005, aspart of the Bank’s tradition of preserving Thai culture, including music and art. The concert which was performed by BangkokSymphony Orchestra (BSO) offered an opportunity for the Thai people from different generations to appreciate Thai classical andcontemporary music that is blended with orchestral instruments. Overall, it was a display of musical grandeur with a touch ofmodernness, yet laced with the wonderful gentleness and subtleties of Thai music. An overwhelming success, the concertbrought together famous artists from different generations such as Charin Nantanakorn, Ruangtong Tonguntom, Setha Sirachaya,Soontaree Vechanont, Nantida Kaewbuasai, Yuenyong Opakul, Rudklao Amratisha, Saovanit Navapan, Thitima Suttasoontorn,Haruthai Maungboonsri and Anuwat Sa-nguansakpakdee (Boy Peacemaker). The total net proceeds of Baht 1,535,610went to the Narcotics Control Foundation.

19

2. The Second “Proud to be Thai with Bankthai” Tour took the participants to Lopburi Province. This exclusive range ofcultural tours is dedicated not only to enhancing the knowledge and appreciation of Thai culture and traditions, but also topromoting pride in Thailand’s rich cultural heritage. This customer appreciation event also presents an avenue to promote businessopportunities, while affording the participants the chance to capitalize on the knowledge of Ajarn Pao-thong Thongchua, arenowned cultural expert and guide. So far, 8 tours have been organized with the participation of 700 people, and have receivedoverwhelmingly positive feedback.

In addition to the above, a wide range of activities is designed to target different customer groups. This includes, forexample, academic-related activities which are handled specifically by the Educational Counseling Office. In 2005, theOffice teamed up with the Office of Public Relations to organize the Third “MBA World Forum”, which was attended by over1,500 participants and provided a forum for young people and prospective MBA students to obtain guidance and informationfrom business schools both at home and abroad. In 2005, two events were organized: one in Bangkok and another in Chiang Mai,with the latter designed to reach out to young people living in provincial towns.

In addition, “Improve Your English” programme is designed to create opportunities for young people and others to improvetheir English language proficiency. The programme continues to receive support from a number of leading English languageschools both at home and abroad, and focuses on specific topics. In 2005, it saw the participation of about 500 people.

The Bank continues to focus its efforts on organizing seminars on various business-related issues of concern and interestto the customers, entailing collaboration with other entities. For example, in 2005, the Bank teamed up with Thailand TextileInstitute to organize a seminar entitled “Still Hope for the Thai Textile and Thai Garment Industry” for its loan customers.In addition, the Bank organized a number of other events, including a special talk for a group of Japanese customers on thesubject of “Post-Election Political and Economic Trends in Thailand”. The guest speakers were Dr. Virabongsa Ramangkura,Mr. Viset choopiban and Mr. Sondhi Limthongkul. Other seminars related to privileged banking etc. were also organized.

On health-promotion issues, the Bank continues to extend support to a large number of related academic institutions,organizations, associations and foundations. This includes Anti-Tuberculosis Drugs Research Fund within Siriraj Foundation underthe Royal Patronage of Her Royal Highness Princess Galayani Vadhana Princess Narathivas, National Council of Women ofThailand under Royal Patronage, Saijai-Thai Foundation, Thailand Association of the Blind, Office of the National CultureCommission, and Foundation for the Mentally Retarded of Thailand. In addition, the Bank teamed up with Caraboa TawandangCo. Ltd. to produce a CD, “Sub Narmta Andaman”, the proceeds from which went towards alleviating the plight of students atBaan Kalim School and Rajaprachanukroh School 36 (Baan Kamala School) in the tsunami-struck Phuket Province. Donationsalso went to the Rajaprachanukroh Foundation under Royal Patronage to help the victims of the tsunami.

BUSINESS DIRECTION IN 2006In 2006, the Bank intends to take a more aggressive approach to enhancing its ability to deliver a universal banking platform

to customers once its obligations related to the management of impaired assets for the FIDF (from 2001 to 2005) under theGain/Loss Sharing and Yield Maintenance Agreement are fulfilled. Appropriate changes will continue to be introduced to itsorganizational structure with a view to strengthening focus on each customer group and customer service, while keeping pace withan ever-growing customer base. Focus of attention will continue to be given to enrich the support of SMEs and personal bankingcustomers.

The organizational structure that is in place provides two well-defined functions, namely business functions and supportfunctions. This includes finance, human resources, legal affairs etc. The business functions are clustered according to thecorresponding customer and business types. The goal is to continue the Bank’s efforts to improve and develop products andservices that satisfy the diverse and changing needs of customers. The operation of the Bank is currently divided into the followinggroups:

1. Corporate Banking Group 1 and Group 22. Institutional Banking Group3. Retail Banking Group4. Business Support Group5. Risk Management and Staff Credit Group

The work is supported by the following divisions:1. Financial Control Division2. Corporate Affairs Division3. Human Resources Management Division4. Core Banking (Core Banking Project Office)

The Bank together with its group of companies remain firmly committed to positioning itself as a full service banking group thatoffers customers as wide a range of products and services as possible. Priority attention continues to be given to strengthening theBank’s competitive position by improving profit margins in every facet of its business, including corporate banking, institutionalbanking, retail banking, and through its subsidiary companies. Focus is also on increasing revenue raised through fees andcharges as a means of improving operational results and stability.

20

In addition to providing the right products and services, the Bank continues to give priority attention to understanding thecomplete relationship with a customer, including service channel preferences. As an important step in that direction, strategicmoves are being taken to boost the capacity of business centers and electronic channels, including self-service kiosks such asATMs (Automated Teller Machines), CDMs (Cash Deposit Machines) and PUMs (Passbook Update Machines). Currently, thereare 619 of such machines in operation. In this respect, appropriate action will be taken between 2006 and 2007 to increase thenumber and efficiency of such machines with a view to providing existing customers with an easier access to the Bank’s productsand services while attracting new customers.

The Bank will continue its thrust on employing the highest standards of risk management with a view to complying with thedirective of the Bank of Thailand and becoming BASEL II accord. Constant attention will be given to evaluating the suitability ofbusiness and developing processes initiated in 2005, especially those in operation units and support units. A balanced mix ofpolicy initiatives will enable the Bank to implement a more aggressive business strategy while managing its human resourceseffectively. In this respect, policy attention will be given to ascertain that staff sizes are commensurate with the volume of business,as well as to evaluate performance reliably and fairly and to ensure that the levels of pay and benefits reflect adequately therelevant labour market supply and demand factors. Further initiatives will also be taken to develop staff skills and knowledge witha view to enhancing the quality of the Bank’s stock of human capital.

HUMAN RESOURCES MANAGEMENT, TRAINING AND DEVELOPMENTThe Bank remains fully committed to enhancing the quality of its stock of human capital which it recognizes as one of the most

important ingredients for success. An important milestone in 2005 was the commissioning of a consultancy firm to help the Bankmove away from the current MBO (Management-by-Objectives) system and move to the BSC (Balanced Score Card) systemthat uses a clear set of Key Performance Indicators (KPI). The rationale behind this policy move is to more effectively measureperformance of staff against the Bank’s set goals and objectives, and to provide a legitimate basis for recommending the paymentof bonuses as a means of rewarding special services or personal performance.

In addition, the Bank plans to review its list of core professional competencies and determine functional competencies requiredfor all positions, to be used in the recruitment process as well as in upgrading the quality of its stock of human capital whilefostering the corporate culture in the long run.

Furthermore, the human resources development programme will focus on the implementation of a management traineeprogramme as well as talent assessment and career planning, to be used as a tool for executive succession planning andrecruitment of professionally qualified and/or experienced specialists to fill specific vacancies.

TRAINING COURSESThe Bank is committed to providing staff with the highest possible quality of training. This involves organizing courses on

specific topics and exhibiting a direct link between learning and the Bank’s overall business strategy and policy. For that purpose,the core training programme has been developed taking account of training needs of each position and/or function identifiedthrough a survey. In 2005, the Bank organized 184 training courses, of which 43 were organized by the Bank and 141 byoutside parties. This represented 6.18 days of training per staff member, costing to the tune of Baht 6.16 million.

POLICY GOVERNING THE BANK’S SUBSIDIARY AND ASSOCIATE COMPANIESA company is deemed to be a subsidiary of the Bank if the Bank has the power to determine that company’s financial and

business policies in such a way as to be in their best interest. It is a company in which the Bank owns, directly or indirectly, morethan 50 per cent of that company’s issued and paid-up share capital.

A company is deemed to be an associate of the Bank if the Bank has the right to participate in the formulation of its financialand business policies. It is a company in which the Bank owns, directly or indirectly, more than 20 per cent of its issued andpaid-up share capital.

The Bank’s policy governing its subsidiary and associate companies involves appointing the Bank’s executives to theirrespective boards of directors. The executives concerned are required to report on the developments and progress achieved by thecompanies to the meeting of BankThai Board of Directors once a week. In addition, the Bank’s Audit Committee is assigned toprovide audit services to the companies concerned.

Essentially in all cases, the subsidiary and associate companies are engaged in activities that are contributing, directly orindirectly, to promoting the Bank’s business. The Bank’s policy is to continue working simultaneously and on parallel paths withthe companies concerned with a view to promoting its own business and those of its subsidiary and associate companies.Significantly, effective cross selling between the Bank and the companies concerned has the potential to contribute towardsoptimizing customer satisfaction through one-stop service offerings. From this perspective, customers can take advantage ofthe service offered by the Bank concurrently with its subsidiaries, say, BT Consultancy Co. Ltd., BT Insurance Co. Ltd. andBT Securities Co. Ltd. to facilitate their business dealings and identify new avenues for doing business or raising funds. Forinstance, BT Consultancy Co. Ltd. can give technical advice to customers and help them identify suitable sources of fund. If thestock exchange should open up the avenue for such fund-raising, then BT Securities Co. Ltd. can step in to help with the relatedformalities and arrangements.

21

RESPONSIBILITY OF THE BOARD OF DIRECTORS FORFINANCIAL STATEMENTS

The Board of Directors is responsible for the financial statements of BankThai Public Company Limitedand its subsidiaries, and the financial disclosures presented in the annual report. The financial statements havebeen prepared in accordance with accounting principles generally accepted in Thailand and suitable accountingpolicies, consistently applied and supported by prudent judgment. Essential data and information have beendisclosed in the notes to the financial statements, with consideration given to the directives prescribed by theBank of Thailand as well as the regulations of the Securities Exchange Commission and the Stock Exchange ofThailand.

The Board continues to give priority attention to enhancing the effectiveness of the Bank’s system ofinternal control to provide reasonable assurance that the system is contributing towards achieving reliability offinancial reporting, thereby protecting the Bank’s assets while preventing malfeasance or irregularity.

Towards that end, an Audit Committee has been established by the Board to consist exclusively of theBank’s Independent Directors. The Committee is responsible for ensuring the integrity of the Bank’s financialstatements and the effectiveness of the Bank’s system of internal control. The views and observations of theAudit Committee have been consolidated into the annual report.

The Board holds the view that the Bank’s system of internal control is effective and can providereasonable assurance as to the reliability of the financial statements of the Bank and its subsidiaries as at31 December 2005.

(Mr. Tawee Butsuntorn) (Mr. Phirasilp Subhapholsiri)

Chairman President

2222

REPORT OF INDEPENDENT AUDITOR

TO THE BOARD OF DIRECTORS AND SHAREHOLDERS OF BANKTHAI PUBLIC COMPANY LIMITED

I have audited the accompanying consolidated balance sheets of BankThai Public Company Limited and its subsidiaries asat 31 December 2005 and 2004, the related consolidated statements of earnings, changes in shareholders’ equity, and cashflows for the years then ended, and the separate financial statements of BankThai Public Company Limited for the same periods.These financial statements are the responsibility of the Bank’s management as to their correctness and the completeness of thepresentation. My responsibility is to report on these financial statements based on my audits.

Except as discussed in the following paragraphs (i) and (ii), I conducted my audits in accordance with generally acceptedauditing standards. Those standards require that I plan and perform the audit to obtain reasonable assurance about whether thefinancial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting theamounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used andsignificant estimates made by management, as well as evaluating the overall financial statement presentation. I believe that myaudits provide a reasonable basis for my opinion.

(i) As discussed in Note 5.4 to the financial statements, as at 31 December 2005, the Bank has outstanding yieldmaintenance income receivable from the Financial Institutions Development Fund (“FIDF”) in accordance with the Gain/LossSharing and Yield Maintenance Agreement. This yield maintenance receivable includes the amount of Baht 8,415 million whichwas calculated on non-performing loans covered under the Gain/Loss Sharing and Yield Maintenance Agreement which weretransferred to the Thai Asset Management Corporation (“TAMC”). Such transfer has not been mentioned in the Gain/LossSharing and Yield Maintenance Agreement, but the Bank’s management believes that FIDF will have to continue to compensatethe Bank for the non-performing loans transferred to TAMC in accordance with the spirit and principle of the agreement. The Bankhas therefore recorded such yield maintenance income in accordance with the principles of yield maintenance stipulated in theagreement. The issue of this yield maintenance receivable is currently being considered by the authorities. The Gain/Loss Sharingand Yield Maintenance Agreement expired on 31 December 2005, but as of the date of this report the Bank has not yet receivedany approval for such compensation from the authorities.

(ii) As mentioned in Note 10.5 and Note 5.3 to the financial statements, as at 31 December 2005, the Bank hasallowance for doubtful debts for loans covered under Gain/Loss Sharing and Yield Maintenance Agreement (CAP loans) andloans not covered under such agreement (Non CAP loans). The Bank did not set aside additional provision for possible loanlosses for Non CAP loans, since the Bank believes that the Baht 774 million in allowance currently recorded for the CAP loansshould be reclassified as allowance for Non CAP loans, in accordance with the letter which the Bank sent to FIDF on 29 November2005. The Bank has received a letter from FIDF acknowledging the Bank’s request for consideration. If the Bank receivesapproval from FIDF, the additional provision for possible loan losses for Non CAP loans mentioned above will not be required. Asat the report date, no conclusion has been reached as to whether approval will be granted.

In my opinion, except for the effects to the financial statements of the matters discussed in paragraphs (i) and (ii), thefinancial statements referred to above present fairly, in all material respects, the financial position of BankThai Public CompanyLimited and its subsidiaries and of BankThai Public Company Limited as at 31 December 2005 and 2004, and the results of theiroperations and cash flows for the years then ended in accordance with generally accepted accounting principles.

Without additionally qualifying my opinion on the financial statements referred to above, I draw attention to the matters (a)as discussed under Note 5 to the financial statements, regarding the possible impact of the conditions stipulated in the Gain/LossSharing and Yield Maintenance Agreement (including the sharing of the gains/losses which will occur, gains on sales of propertiesforeclosed, and the actual amount that will be received from receivables due from the Financial Institutions Development Fund)whereby the actual amount to be received depends upon the results of examination by the FIDF; (b) as discussed under Note 6to the financial statements, regarding the gain/loss sharing which may arise in the future as a result of the transfer ofnon-performing loans to TAMC; and (c) as discussed under Note 25.1 to the financial statements, regarding the treasury stockbought back in the years 2002 and 2003, in respect of which the Bank has not yet taken action in accordance with the letter ofthe Office of the Securities and Exchange Commission dated 14 February 2005. This treasury stock must be sold to a third partyby 26 May 2006, the maturity date of the treasury stock programme, or else a reduction of the Bank’s capital to offset theoutstanding treasury stock is required.

Ruth ChaowanagawiCertified Public Accountant (Thailand) No. 3247

Ernst & Young Office LimitedBangkok : 24 February 2006

23

ASSETS

CASH 1,907,204,430 1,423,824,397 1,905,503,726 1,423,694,200

INTERBANK AND MONEY MARKET ITEMS 7

Domestic items

Interest bearing 873,113,833 4,898,918,899 803,466,567 4,968,789,416

Non-interest bearing 5,345,638,961 5,458,131,472 5,312,138,061 5,437,206,397

Foreign items

Interest bearing 6,545,752,338 3,662,774,441 6,545,752,338 3,662,774,441

Non-interest bearing 65,005,357 60,497,773 65,005,357 60,497,773

Interbank and money market items - net 12,829,510,489 14,080,322,585 12,726,362,323 14,129,268,027

SECURITIES PURCHASED UNDER RESALE AGREEMENTS 8 2,200,000,000 3,000,000,000 2,200,000,000 3,000,000,000

INVESTMENTS 9

Short-term investments - net 9.1 8,107,211,509 1,475,263,367 7,904,163,834 1,120,214,927

Long-term investments - net 9.1 56,019,022,911 35,491,766,378 55,976,356,089 35,417,420,038

Investments in subsidiaries and associated companies - net 9.6 202,656,630 355,414,970 1,298,412,399 1,142,054,459

Investments - net 64,328,891,050 37,322,444,715 65,178,932,322 37,679,689,424

TRADING TRANSACTIONS WITH SECURITIES COMPANIES 212,268,882 41,621,497 - -

LOANS AND ACCRUED INTEREST RECEIVABLES 10

Loans 140,166,725,790 132,982,029,963 137,449,007,005 130,049,093,462

Accrued interest receivables 4,474,761,751 5,486,683,689 4,376,169,134 5,413,879,190

Total loans and accrued interest receivables 144,641,487,541 138,468,713,652 141,825,176,139 135,462,972,652

Less : Allowance for doubtful debts 11 (24,788,935,783) (26,049,067,126) (22,425,051,248) (23,677,430,258)

Revaluation allowance for debt restructuring 12 (195,525,992) (264,540,899) (181,097,986) (250,112,893)

Loans and accrued interest receivables - net 119,657,025,766 112,155,105,627 119,219,026,905 111,535,429,501

PROPERTIES FORECLOSED - Net 13 6,063,476,096 9,219,179,381 5,778,841,164 9,243,373,221

CUSTOMERS’ LIABILITY UNDER ACCEPTANCE 402,854,136 431,826,402 402,854,136 431,826,402

PREMISES AND EQUIPMENT - Net 14 3,055,312,757 2,733,909,640 2,959,210,323 2,654,454,150

RECEIVABLES FROM THE FINANCIAL INSTITUTIONS AND

DEVELOPMENT FUND UNDER GAIN/LOSS SHARING AND

YIELD MAINTENANCE AGREEMENT 15,22 47,860,795,706 43,223,376,884 47,824,738,325 43,225,063,783

YIELD MAINTENANCE INCOME RECEIVABLES - Net 5.4 8,385,499,919 6,519,646,895 8,386,891,193 6,519,207,304

INTANGIBLE ASSETS 16 822,080,913 675,877,417 802,421,670 662,764,739

OTHER ASSETS 17 2,112,853,007 1,041,151,772 1,790,654,358 1,005,125,427

TOTAL ASSETS 269,837,773,151 231,868,287,212 269,175,436,445 231,509,896,178

BALANCE SHEETSBankThai Public Company Limited and its SubsidiariesAs at 31 December 2005 and 2004

(Unit : Baht)Consolidated The Bank only

Note 2005 2004 2005 2004(Restated) (Restated)

The accompanying notes are an integral part of the financial statements.

24

LIABILITIES AND SHAREHOLDERS’ EQUITY

DEPOSITS 18

Deposits in Baht 182,852,608,304 184,301,481,249 182,979,031,715 184,344,356,239

Deposits in foreign currencies 11,594,290,221 214,309,947 11,594,290,221 214,309,947

Total deposits 194,446,898,525 184,515,791,196 194,573,321,936 184,558,666,186

INTERBANK AND MONEY MARKET ITEMS 19

Domestic items

Interest bearing 39,683,057,357 30,934,342,142 39,725,395,036 31,010,990,585

Non-interest bearing 60,914,061 24,572,318 80,696,962 48,746,619

Foreign items

Interest bearing 11,006,861,871 1,112,532,695 11,006,861,871 1,112,532,695

Non-interest bearing 11,870,188 353,152,934 11,870,188 353,152,934

Total interbank and money market items 50,762,703,477 32,424,600,089 50,824,824,057 32,525,422,833

LIABILITY PAYABLE ON DEMAND 514,603,833 182,252,767 514,603,833 182,252,767

SECURITIES SOLD UNDER REPURCHASED AGREEMENT 20 7,000,000,000 - 7,000,000,000 -

BORROWINGS 21

Short-term borrowings 544,502,520 544,502,520 544,502,520 544,502,520

Long-term borrowings 2,869,660,000 2,869,660,000 2,869,660,000 2,869,660,000

Total borrowings 3,414,162,520 3,414,162,520 3,414,162,520 3,414,162,520

BANK’S LIABILITY UNDER ACCEPTANCE 402,854,136 431,826,402 402,854,136 431,826,402

ACCRUED INTEREST EXPENSES 730,826,557 427,282,513 731,602,082 427,287,326

OTHER LIABILITIES 23 4,000,706,393 2,815,389,458 3,228,810,127 2,313,438,777

TOTAL LIABILITIES 261,272,755,441 224,211,304,945 260,690,178,691 223,853,056,811

BALANCE SHEETS (CONTINUED)

BankThai Public Company Limited and its SubsidiariesAs at 31 December 2005 and 2004

The accompanying notes are an integral part of the financial statements.

(Unit : Baht)Consolidated The Bank only

Note 2005 2004 2005 2004(Restated) (Restated)

25

LIABILITIES AND SHAREHOLDERS’ EQUITY (Continued)

SHAREHOLDERS’ EQUITY

Share capital

Registered

3,706,800,000 preference shares of Baht 10 each 24 37,068,000,000 37,068,000,000 37,068,000,000 37,068,000,000

1,493,450,000 ordinary shares of Baht 10 each 14,934,500,000 14,934,500,000 14,934,500,000 14,934,500,000

Issued and paid-up share capital

1,493,450,000 ordinary shares of Baht 10 each 14,934,500,000 14,934,500,000 14,934,500,000 14,934,500,000

Share discount (1,123,608,592) (1,123,608,592) (1,123,608,592) (1,123,608,592)

Revaluation deficit on investments 27 (431,832,477) (649,000,729) (431,832,477) (649,000,729)

Retained earnings

Appropriated - legal reserve 28 6,053,484 6,053,484 6,053,484 6,053,484

Deficit (2,848,719,218) (3,459,969,353) (2,848,719,218) (3,459,969,353)

Treasury stocks 25

- 93,355,900 shares held by the Bank 25.1 (791,693,246) (791,693,246) (791,693,246) (791,693,246)

- 124,296,737 shares held by the subsidiaries 25.2 (1,259,442,197) (1,259,442,197) (1,259,442,197) (1,259,442,197)

EQUITY ATTRIBUTABLE TO THE BANK’S SHAREHOLDERS 8,485,257,754 7,656,839,367 8,485,257,754 7,656,839,367

MINORITY INTERESTS 79,759,956 142,900 - -

TOTAL SHAREHOLDERS’ EQUITY 8,565,017,710 7,656,982,267 8,485,257,754 7,656,839,367

TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY 269,837,773,151 231,868,287,212 269,175,436,445 231,509,896,178

OFF-BALANCE SHEET ITEMS - COMMITMENTS 36

Aval to bills and guarantees of loans 1,279,444,750 615,972,487 1,279,444,750 615,972,487

Liability under unmatured import bills 512,687,124 571,424,203 512,687,124 571,424,203

Letter of credits 2,176,113,010 3,181,120,383 2,176,113,010 3,181,120,383

Other commitments 345,790,719,094 127,760,393,517 345,790,719,094 127,760,393,517

The accompanying notes are an integral part of the financial statements.

Mr. Phirasilp Subhapholsiri Mr. Preecha Oonchitti

President Director

BALANCE SHEETS (CONTINUED)

BankThai Public Company Limited and its SubsidiariesAs at 31 December 2005 and 2004

(Unit : Baht)Consolidated The Bank only

Note 2005 2004 2005 2004(Restated) (Restated)

26

The accompanying notes are an integral part of the financial statements.

(Unit : Baht)Consolidated The Bank only

Note 2005 2004 2005 2004(Restated) (Restated)

INTEREST AND DIVIDEND INCOME

Loans 4,697,437,485 3,932,059,019 4,703,978,694 3,933,662,662

Interbank and money market items 272,573,778 175,416,013 286,016,674 208,016,782

Hire purchase and finance lease income 124,065,915 821,488 - -

Investments 2,219,299,898 1,101,948,884 2,206,040,893 1,088,302,053

Yield maintenance income 5.4,22 1,525,959,559 1,208,261,723 1,528,555,900 1,208,000,000

Total interest and dividend income 8,839,336,635 6,418,507,127 8,724,592,161 6,437,981,497

INTEREST EXPENSES

Deposits 3,950,213,945 3,357,798,068 3,957,418,125 3,360,267,757

Interbank and money market items 1,068,159,236 383,740,700 1,060,570,827 382,693,470

Long-term borrowings 3,740,000 2,049,315 3,740,000 2,049,315

Total interest expenses 5,022,113,181 3,743,588,083 5,021,728,952 3,745,010,542

Net interest and dividend income 3,817,223,454 2,674,919,044 3,702,863,209 2,692,970,955

BAD DEBT AND DOUBTFUL ACCOUNTS (238,008,412) - (215,000,000) -

Net interest and dividend income after bad debt and doubtful accounts 3,579,215,042 2,674,919,044 3,487,863,209 2,692,970,955

NON-INTEREST INCOME

Gains on investments 30 268,583,728 277,972,253 253,432,735 290,212,505

Fees and charges

Acceptances, aval and guarantees 120,779,837 93,719,366 120,779,837 93,719,366

Others 700,983,991 660,410,132 461,123,940 337,376,104

Gains (losses) on exchange rates (28,356,184) 198,083,292 (28,356,184) 198,083,292

Gains on disposals of properties foreclosed 273,670,551 164,136,204 289,042,204 164,136,204

Gains on Derivatives 15,520,827 22,062,654 15,520,827 22,062,654

Other income 229,892,257 269,916,841 89,220,224 98,357,112

Total non-interest income 1,581,075,007 1,686,300,742 1,200,763,583 1,203,947,237

STATEMENTS OF EARNINGSBankThai Public Company Limited and its SubsidiariesFor the Years Ended 31 December 2005 and 2004

27

NON-INTEREST EXPENSES

Personnel expenses 1,694,892,136 1,432,420,969 1,381,063,713 1,216,169,903

Contribution fee to the Financial Institutions and Development Fund 786,899,113 799,052,129 786,899,113 799,052,129

Premises and equipment expenses 894,296,420 781,624,538 812,712,690 721,644,128

Taxes and duties 305,568,088 238,812,996 304,099,182 237,024,666

Share of losses from investments in subsidiaries

and associated companies 45,528,663 31,447,281 171,418,181 33,819,404

Fees and charges 314,485,670 119,011,017 298,836,752 109,191,607

Directors’ remuneration 31 17,794,700 20,599,964 13,036,000 13,216,000

Other expenses 468,849,116 351,421,523 309,311,026 179,971,629

Total non-interest expenses 4,528,313,906 3,774,390,417 4,077,376,657 3,310,089,466

EARNINGS BEFORE CORPORATE INCOME TAX 631,976,143 586,829,369 611,250,135 586,828,726

CORPORATE INCOME TAX 32 (24,206,570) - - -

EARNINGS BEFORE MINORITY INTERESTS 607,769,573 586,829,369 611,250,135 586,828,726

MINORITY INTERESTS 3,480,562 (643) - -

NET EARNINGS FOR THE YEARS 611,250,135 586,828,726 611,250,135 586,828,726

EARNINGS PER SHARE 4.19

Basic earnings per share 0.48 0.47 0.48 0.47

Weighted average number of ordinary shares held by

external parties (shares) 1,275,797,363 1,238,803,066 1,275,797,363 1,238,803,066

The accompanying notes are an integral part of the financial statements.

(Unit : Baht)Consolidated The Bank only

Note 2005 2004 2005 2004(Restated) (Restated)

STATEMENTS OF EARNINGS (CONTINUED)

BankThai Public Company Limited and its SubsidiariesFor the Years Ended 31 December 2005 and 2004

Mr. Phirasilp Subhapholsiri Mr. Preecha Oonchitti

President Director

28

The accompanying notes are an integral part of the financial statements.

Balance as at

31 December 2003,

as previously reported 14,934,500,000 (1,123,608,592) 327,968,657 (679,864,786) (51,523,087) 6,053,484 (3,913,177,823) (791,693,246) (2,023,870,264) 156,337 6,684,940,680

Effect of change in accounting

policy relating to land

and buildings 3 - - (327,968,657) - - - - - - - (327,968,657)

Cumulative effects of change

in accounting policy

for derivatives 3 - - - - 51,523,087 - (23,846,511) - - - 27,676,576

Balance as at

31 December 2003,

restated 14,934,500,000 (1,123,608,592) - (679,864,786) - 6,053,484 (3,937,024,334) (791,693,246) (2,023,870,264) 156,337 6,384,648,599

Increase in fair value

of investments - - - 30,864,057 - - - - - - 30,864,057

Net earnings for the year

(Restated) - - - - - - 586,828,726 - - - 586,828,726

Increase in treasury stocks - - - - - - - - (3,408,706) - (3,408,706)

Decrease in treasury stocks

held by the subsidiaries - - - - - - (109,773,745) - 767,836,773 - 658,063,028

Decrease in minority interest - - - - - - - - - (13,437) (13,437)

Balance as at

31 December 2004,

restated 14,934,500,000 (1,123,608,592) - (649,000,729) - 6,053,484 (3,459,969,353) (791,693,246) (1,259,442,197) 142,900 7,656,982,267

Increase in fair value

of investments - - - 217,168,252 - - - - - - 217,168,252

Net earnings for the year - - - - - - 611,250,135 - - - 611,250,135

Decrease in minority interest - - - - - - - - - 79,617,056 79,617,056

Balance as at

31 December 2005 14,934,500,000 (1,123,608,592) - (431,832,477) - 6,053,484 (2,848,719,218) (791,693,246) (1,259,442,197) 79,759,956 8,565,017,710

(Unit : Baht)Consolidated

Issued and Revaluation Revaluation Unrealised Treasury stockspaid-up Share surplus on deficit on losses on Retained earnings Treasury stocks held by the Minority

Note share capital discounts assets investments derivatives Legal reserve (deficit) held by the bank subsidiaries interests Total

STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITYBankThai Public Company Limited and its SubsidiariesFor the Years Ended 31 December 2005 and 2004

29

The accompanying notes are an integral part of the financial statements.

Balance as at

31 December 2003,

as previously reported 14,934,500,000 (1,123,608,592) 327,968,657 (679,864,786) (51,523,087) 6,053,484 (3,913,177,823) (791,693,246) (2,023,870,264) - 6,684,784,343

Effect of change in accounting

policy relating to land

and buildings 3 - - (327,968,657) - - - - - - - (327,968,657)

Cumulative effects of change in

accounting policy

for derivatives 3 - - - - 51,523,087 - (23,846,511) - - - 27,676,576

Balance as at restated

restated

restated 14,934,500,000 (1,123,608,592) - (679,864,786) - 6,053,484 (3,937,024,334) (791,693,246) (2,023,870,264) - 6,384,492,262

Increase in fair value

of investments - - - 30,864,057 - - - - - - 30,864,057

Net earnings for the year

(Restated) - - - - - - 586,828,726 - - - 586,828,726

Increase in treasury stocks - - - - - - - - (3,408,706) - (3,408,706)

Decrease in treasury stocks

held by the subsidiaries - - - - - - (109,773,745) - 767,836,773 - 658,063,028

Balance as at

31 December 2004,

restated 14,934,500,000 (1,123,608,592) - (649,000,729) - 6,053,484 (3,459,969,353) (791,693,246) (1,259,442,197) - 7,656,839,367

Increase in fair value

of investments - - - 217,168,252 - - - - - - 217,168,252

Net earnings for the year - - - - - - 611,250,135 - - - 611,250,135

Balance as at

31 December 2005 14,934,500,000 (1,123,608,592) - (431,832,477) - 6,053,484 (2,848,719,218) (791,693,246) (1,259,442,197) - 8,485,257,754

(Unit : Baht)The Bank only

Issued and Revaluation Revaluation Unrealised Treasury stockspaid-up Share surplus on deficit on losses on Retained earnings Treasury stocks held by the Minority

Note share capital discounts assets investments derivatives Legal reserve (deficit) held by the bank subsidiaries interests Total

STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY (CONTINUED)

BankThai Public Company Limited and its SubsidiariesFor the Years Ended 31 December 2005 and 2004

30

CASH FLOWS FROM OPERATING ACTIVITIES

Net earnings for the years 611,250,135 586,828,726 611,250,135 586,828,726

Adjustments to reconcile net earnings for the years to net cash provided

by (used in) operating activities :-

Earnings attributable to minority interests (3,480,562) 643 - -

Negative goodwill amortisation - (5,293,481) - -

Share of losses from investments in subsidiaries and

associated companies 45,528,663 31,447,281 171,418,181 33,819,404

Depreciation and amortisation 333,184,943 295,233,637 300,460,627 267,263,973

Bad debt and doubtful account 238,008,412 - 215,000,000 -

Commitments reserve 2,000,000 - 2,000,000 -

Reversal of losses on impairment of investments (73,951,214) (22,323,111) (73,951,214) (22,323,111)

Losses on impairment of other assets (reversal) 9,000,000 (63,710,329) 9,000,000 -

Unrealised losses on exchange 45,025,086 1,860,396 45,025,086 1,860,396

Unrealised gains on derivatives (35,688,984) (30,621,137) (35,688,984) (30,621,137)

Gain on disposal of property foreclosed (273,670,551) (164,136,204) (289,042,204) (164,136,204)

Unrealised (gains) losses on revaluation of investments (537,717) 1,184,704 (877,106) (5,676)

Gains on sale of investments (244,717,208) (255,514,670) (227,250,683) (270,169,672)

Unrealised (gains) losses on reclassification of investment types 48,439,899 (1,319,176) 48,439,899 2,285,954

Gains on acquired from debt repayment (14,604,705) - (14,604,705) -

Gains on disposal of premises and equipment (1,012,936) (21,903,241) (546,716) (22,173,107)

Losses on disposal of assets under operating lease contracts - 38,737,973 - -

Decrease in accrued interest receivables 1,012,015,953 713,886,096 1,031,765,574 711,426,387

Increase in yield maintenance income receivables (1,890,152,706) (1,299,611,346) (1,891,983,572) (1,301,302,355)

Provision for unrecoverable portion of yield maintenance income 24,299,683 - 24,299,683 -

Loss on closure of finance lease accounts - 24,276,819 - -

Increase in unearned premium reserves 25,122,934 10,457,986 - -

Increase (decrease) in accrued interest payable 303,544,044 (767,560,821) 304,314,756 (768,484,221)

Increase (decrease) in accrued expenses 84,275,248 (58,878,049) 78,774,680 (19,587,452)

Net earnings (losses) from operations before changes

in operating assets and liabilities 243,878,417 (986,957,304) 307,803,437 (995,318,095)

(Increase) decrease in operating assets

Interbank and money market items 1,299,837,840 777,432,479 1,417,729,705 1,465,616,024

Securities purchased under resale agreements 800,000,000 10,100,000,000 800,000,000 10,100,000,000

Investments held for trading (91,097,094) 44,342,580 (99,805,634) 64,445,989

Trading transaction with securities companies (170,647,385) 64,976,187 - -

Loans (13,101,217,328) (13,036,441,418) (13,456,897,410) (13,513,977,021)

Properties foreclosed 3,105,630,829 1,156,028,930 3,410,216,879 1,156,028,930

Receivables from the Financial Institutions and Development Fund

under Gain/Loss Sharing and Yield Maintenance Agreement (17,363,780) 6,259,294 18,693,600 6,259,294

Other assets (517,931,148) 678,357,316 (248,845,108) 615,097,298

The accompanying notes are an integral part of the financial statements.

(Unit : Baht)Consolidated The Bank only

2005 2004 2005 2004(Restated) (Restated)

STATEMENTS OF CASH FLOWSBankThai Public Company Limited and its SubsidiariesFor the Years Ended 31 December 2005 and 2004

31

The accompanying notes are an integral part of the financial statements.

(Unit : Baht)Consolidated The Bank only

2005 2004 2005 2004(Restated) (Restated)

STATEMENTS OF CASH FLOWS (CONTINUED)

BankThai Public Company Limited and its SubsidiariesFor the Years Ended 31 December 2005 and 2004

Increase (decrease) in operating liabilities

Deposits 9,931,107,329 (11,774,056,885) 10,014,655,750 (11,764,582,223)

Interbank and money market items 18,491,683,634 12,955,688,189 18,457,906,491 12,994,630,912

Liability payable on demand 332,351,065 (1,088,487,754) 332,351,065 (1,088,487,754)

Securitics sold under repurchased agreement 7,000,000,000 - 7,000,000,000 -

Other liabilities (629,728,032) 201,268,144 (812,274,598) 691,441,563

Net cash provided by (used in) operating activities 26,676,504,347 (901,590,242) 27,141,534,177 (268,845,083)

CASH FLOWS FROM INVESTING ACTIVITIES

Decrease (increase) in securities held for investments (25,657,703,219) 1,087,120,337 (25,825,635,345) 1,155,355,822

Increase in investment in subsidiaries and associated - (173,740,430) (450,270,923) (293,740,430)

Cash received on liquidation of subsidiary 106,722,977 - 106,722,977 -

Cash paid for purchases of premises and equipment (380,847,550) (266,480,529) (340,020,973) (246,921,737)

Proceeds from disposals of premises and equipment 4,773,477 27,116,743 4,112,767 24,436,468

Cash paid for purchases of intangible assets (166,399,506) (157,828,558) (154,633,154) (150,925,775)

Net cash provided by (used in) investing activities (26,093,453,821) 516,187,563 (26,659,724,651) 488,204,348

CASH FLOWS FROM FINANCING ACTIVITIES

Decrease in short - term borrowings (100,037,070) (50,000,000) - -

Increase in long - term borrowings - 110,000,000 - 110,000,000

Proceeds from disposal of treasury stocks - 658,052,399 - -

Payments for treasury stocks - (3,408,706) - -

Net cash provided by (used in) financing activities (100,037,070) 714,643,693 - 110,000,000

Net increase in cash and cash equivalents 483,013,456 329,241,014 481,809,526 329,359,265

Cash and cash equivalents at the end of the year

of subsidiary company which is not included

in consolidated financial statements 366,577 - - -

Cash and cash equivalents at beginning of the years’ 1,423,824,397 1,094,583,383 1,423,694,200 1,094,334,935

Cash and cash equivalents at the end of the years 1,907,204,430 1,423,824,397 1,905,503,726 1,423,694,200

SUPPLEMENTAL DISCLOSURE OF CASH FLOWS INFORMATION

Cash paid during the years for :

Interest expenses 4,718,569,137 4,530,764,366 4,717,409,382 4,536,010,769

Non-cash transactions

Properties foreclosed received in settlement of debts 401,033,543 366,158,740 307,095,846 364,411,940

Investments received in settlement of debts 173,719,264 1,112,701,916 173,719,264 1,112,701,916

3232

NOTES TO FINANCIAL STATEMENTSBankThai Public Company Limited and its Subsidiaries

1. GENERAL INFORMATIONBankThai Public Company Limited (hereinafter referred to as “the Bank”) was incorporated as a public limited company under

Thai law. The Bank operates in Thailand and has been licensed by the Ministry of Finance to operate banking businesses since8 March 1949. The Bank’s head office is located at 44 North Sathorn Road, Bangrak, Bangkok, and it has branches all overThailand. As at 31 December 2005 and 2004, the Bank had totals of 2,507 and 2,413 employees, respectively, includingtemporary staff. As at 31 December 2005 and 2004, the Bank and its subsidiaries had totals of 3,088 and 2,767 employees,respectively, including temporary staff.

All subsidiaries were incorporated as a limited company or a public limited company under Thai law. All those operate inThailand by engaging mainly in securities business, fund management, insurance business, hire purchase and leasing.

2. BASIS FOR PREPARATION OF FINANCIAL STATEMENTS2.1 BASIS FOR PRESENTATION OF FINANCIAL STATEMENTS

The consolidated financial statements of the Bank and its subsidiaries and the separate financial statements of the Bankhave been presented in compliance with the requirement of the Notification of the Bank of Thailand (“the BOT”) dated 10 May2001 relating to the format of the balance sheet and statement of earnings of commercial banks. They have also been presentedin accordance with the regulations of the Stock Exchange of Thailand and the Notifications of the Office of the Securities andExchange Commission with regard to the preparation and submission of financial statements and reports on financial position andoperating results of listed companies.

2.2 BASIS OF CONSOLIDATIONThe consolidated financial statements as at 31 December 2005 and 2004 include the financial statements of BankThai

Public Company Limited and the following subsidiaries :-Revenue includedas a percentage

Assets included as Percentage of to the consolidateda percentage to the Bank and shares held by the totals for the years endedconsolidated totals subsidiary 31 December

Nature of business 2005 2004 2005 2004 2005 2004

Subsidiaries directly held by the BankBT Insurance Co., Ltd. Non-life insurance 100 100 0.18 0.15 1.38 1.38BT Leasing Co., Ltd. Leasing and hire 100 100 0.26 0.02 0.21 0.03

purchaseBT Consultant Co., Ltd. Consultancy services 100 100 - - 0.06 0.18BT Securities Co., Ltd. Securities 100 100 0.63 0.41 2.38 4.83BT Asset Management Co., Ltd. Fund manager 100 100 0.02 0.04 0.15 -Sathorn Asset Management Co., Ltd. Asset management 100 - 0.10 - - -BT Worldlease Co., Ltd. Hire-purchase - motorcycle 75 - 0.38 - 1.12 -Subsidiaries held by subsidiary (BT Worldlease Co., Ltd.)Siam Wall N.E. Leasing Co., Ltd. Hire-purchase - motorcycle100 - 0.01 - 0.03 -Asset Liability Management Co., Ltd. Motorcycle trading 100 - 0.01 - 0.02 -

Significant intercompany balances and transactions among the Bank and its subsidiaries have already been eliminatedfrom the consolidated financial statements.

In May 2005, the Bank acquired 18,010,000 ordinary shares of BT Worldlease Co., Ltd. for a total of Baht 247,637,500,representing a 75 percent shareholding in that company, making it a subsidiary of the Bank. The consolidated balance sheet asat 31 December 2005 therefore incorporates the balance sheet of this company as at 31 December 2005 and the consolidatedearnings statements for the year then ended includes the operating results of that company as from 1 May 2005 to 31 December2005.

In May 2005, the Bank invested in 2,499,993 ordinary shares of Sathorn Asset Management Co., Ltd. with par valueof 10 Baht to per share, representing 100 percent of the registered capital of such company, which is newly incorporated.

The consolidated financial statements as at 31 December 2005 do not include the financial statements of 1 subsidiary(2004 : 2 subsidiaries) in which the Bank has a percentage shareholding greater than 50 percent because those subsidiaries areawaiting disposal. Cost of those investments as at 31 December 2005 amounted to approximately Baht 93 million (2004 : Baht94 million). However, the Bank has made full allowance for impairment in the value of its investment in this subsidiary.

Furthermore, as at 31 December 2005 and 2004, the consolidated financial statements excluded the financialstatements of another subsidiary, Krung Thai Thanakit Finance Public Company Limited, in which the bank holds 99 percent ofshares, since such subsidiary registered its dissolution with the Ministry of Commerce on 6 June 2003, has already returned itsfinancial business license, and is currently in the process of liquidation. The condensed balance sheets of such subsidiary as at 31December 2005 and 2004 (unaudited) are presented below :-

33

(Unit : Million Baht)2005 2004

AssetsCash and deposits at financial institutions 67 188Investments in government and state enterprise securities 9 9Investments in the Bank’s ordinary shares - cost 515 515Less : Allowance for diminution in value of investments (177) (241)Investments in the Bank’s ordinary shares - net 338 274Loans and interest receivables 610 685Less : Allowance for doubtful debts (582) (627)Loans and interest receivables - net 28 58Others 52 49Total assets 494 578

Liabilities and shareholders’ equityLiabilities - other creditors and liabilities 20 71Shareholders’ equity

Ordinary share capital 388 495 Retained earnings 86 12Total shareholders’ equity 474 507Total liabilities and shareholders’ equity 494 578

As at 31 December 2005 and 2004, the remaining balances of non-performing assets of Krung Thai Thanakit FinancePubic Company Limited under the Covered Asset Pool and the relevant provision transferred under the Gain/Loss Sharing andYield Maintenance Agreement made between the FIDF and the Bank were as follows :-

(Unit : Million Baht)2005 2004

Outstanding Allowance for Net book Outstanding Allowance for Net bookbalances doubtful debts value balances doubtful debts value

Loans and interest receivables 282 293 (11) 329 (338) (9)Total 282 293 (11) 329 (338) (9)

3. CHANGE IN ACCOUNTING POLICY AND ADJUSTMENTSAs at 31 December 2005, the Bank has changed its accounting policy for derivatives held for hedging purposes, from

measuring derivative hedging instruments at fair value (Benchmark Treatment of the draft Accounting Guideline for Derivatives) tomeasuring them on an accrual basis (Allowed Alternative Treatment of the draft Accounting Guideline for Derivatives) since itwould be more appropriate to the items being hedged. In changing this accounting policy, the Bank had to restate the previousyear’s financial statements, presented herein for comparative purposes, as though the accrual basis were originally adopted. Theadjustment has the effect of increasing the net earnings for the years 2005 and 2004 by Baht 56 million and Baht 41 million,respectively, and increasing shareholders’ equity for the years 2005 and 2004 by Baht 173 million and Baht 35 million,respectively. The cumulative effects of the accounting change have been presented under the heading of “Effect of change inaccounting policy for derivatives” in the statements of changes in shareholders’ equity.

As at 31 December 2005, the Bank has changed its accounting policy relating to land and buildings, from stating them atappraised value (Allowed Alternative Treatment) to stating them at cost less accumulated depreciation (Benchmark Treatment).In changing this accounting policy, the Bank had to restate the financial statements as though the land and buildings were originallyrecorded on a historical cost basis. The adjustment has the effect of decreasing the balance of land and buildings as at 31December 2004 by Baht 308 million. The effect of the accounting change has been presented under the heading of “Effect ofchange in accounting policy relating to land and buildings” in the statements of changes in shareholders’ equity. The effects toother accounts are immaterial.

4. SIGNIFICANT ACCOUNTING POLICIESThe financial statements have been prepared in accordance with accounting standards enunciated under the Accounting Act

B.E. 2547, and with reference to the principles stipulated by the Bank of Thailand.Significant accounting policies adopted by the Bank and its subsidiaries are summarised below:-

4.1 Revenue recognition(a) Interest and discount on loans

The Bank recognises interest and discounts on loans as income on an accrual basis, based on the amount ofprincipal outstanding. For loans on which principal or interest payments have been defaulted for more than threemonths from the due date, the Bank ceases accrual of interest income, recognises interest income on a cash basisand reverses the interest previously accrued as income for such defaulted loans from their accounts, in accordancewith the Notification of the Bank of Thailand.

Interest income on restructured loans is recognised on the same accrual basis as used for loans discussed above,with the exception of loans that are subject to monitoring for compliance with restructuring conditions, on which the

34

Bank recognises interest income on a cash basis until the borrower has been able to comply with the restructuringconditions for a period of not less than three consecutive months or three consecutive installments, whichever islonger.

(b) Interest on margin loansInterest is recognised over the term of the loans based on the amount of principal outstanding. For delinquent

margin loans on which interest is overdue for more than three months, it is the subsidiary’s policy to stop recognisingincome on an accrual basis and adopt a cash basis in recognising income for such delinquent margin loans.

(c) Yield maintenance incomeYield maintenance income is recognised on an accrual basis based on the conditions stipulated in the contract

and other subsequent amendments. Yield maintenance income on the portion of non-performing loans transferred toTAMC is also recognised on the accrual basis as mentioned above. However, such yield maintenance income is inthe process of being considered and approved by the Ministry of Finance. Yield maintenance income is presented aspart of interest income.

(d) Interest and dividends on investmentInterest on investments is recognised as income on an accrual basis. Dividends from securities are recognised as

income when the dividends are received.(e) Gains (losses) on sale of investment

Gains (losses) on sale of investments are recognised as income/expenses on the transaction date.(f) Fees and service income

Fees and service income are recognised as income on an accrual basis.(g) Brokerage fees

Brokerage fees on securities trading are recognised as income on the transaction date.(h) Insurance premium

For insurance policies with the coverage periods of less than 1 year, premium income is recognised on the datethe insurance policy comes into effect, after deducting premium ceded and cancelled. For long-term insurancepolicies with coverage periods of longer than 1 year, related revenues and expenses are recorded as unearned andprepaid items and gradually recognised as income and expenses on an annual basis over the coverage periods.

(i) Reinsurance premiumReinsurance premium income is recognised when the reinsurer places the reinsurance application or statement of

accounts with the subsidiary.(j) Income under lease contracts

Income under financial lease contracts is recorded under the financing method of accounting, whereby the excessof the aggregate amount of rental plus estimated residual value over the cost of the leased assets representsunearned lease income, which is gradually taken up as income over the term of the lease on an annuity method.

Income under operating lease contracts is recorded under the operating method of accounting, whereby rentalsare recorded as income based on the lease terms, excluding value added tax.

(k) Hire purchase incomeThe hire-charges under hire purchase contracts are recognised over the installment period, using the effective

interest rate, with income recognised as the installments fall due.However, recognition of income on hire purchase receivables ceases when payment is more than four installments

overdue and a letter denouncing the agreement has been prepared. Income will be reinstated on an accrual basiswhen the overdue installments are received.

4.2 EXPENSE RECOGNITION(a) Interest expenses

Interest expenses are charged to earnings on an accrual basis. Interest on notes payable included in the facevalue is recorded as deferred interest and amortised to expenses evenly throughout the term of the notes.

(b) Unearned premium reserveUnearned premium reserve is set aside as follows, in compliance with the Notification of the Ministry of Commerce

regarding the appropriation of unearned premium reserve :-Fire, motor and miscellaneous - Monthly average basis (the one-twenty fourth basis)Marine and transportation (Cargo) - Net premium written for the last ninety daysTravelling accident - Net premium written for the last thirty days

(c) Loss reserve and outstanding claimsOutstanding claims have been provided upon receipt of claim advices from the insured. Loss reserve has been

provided based on estimates made by the subsidiary’s management. In addition, the subsidiary additionally sets upa provision for losses incurred but not reported (IBNR) at 2.5 percent of net premium written for the last twelvemonths in compliance with the Notification of the Ministry of Commerce governing the appropriation of unearnedpremium reserves.

(d) Commission fee under hire purchase agreementsThe commission fee under hire purchase agreements is recognised over the installment period, using a

straight-line basis.

4.3 ASSETS UNDER THE GAIN/LOSS SHARING AND YIELD MAINTENANCE AGREEMENTThe Bank and its subsidiaries recorded non-performing assets under the Gain/Loss sharing and Yield Maintenance

Agreement at the transfer price. Additional allowances for doubtful debts and impairment are not provided for the Bank and itssubsidiaries’ assets under the Gain/Loss Sharing and Yield Maintenance Agreement, which comprise of loans and receivables,

35

securities business receivables, investments in securities and properties foreclosed as the management believes the incurred losswill be fully compensated for.

Gain/Loss from management of non-performing assets, including from disposals of assets and debt restructuring is notrealised in the statements of earnings but will be deferred as awaiting compensation from the Financial Institutions DevelopmentFund and recorded under the caption of “Receivables from the Financial Institutions Development Fund under the Gain/LossSharing and Yield Maintenance Agreement” in the balance sheets.

4.4 INVESTMENTSThe Bank and its subsidiaries record investments which are not to be compensated for under the Gain/Loss Sharing and

Yield Maintenance Agreement, as follows.Investments in securities held for trading are determined at fair value. Gains or losses arising from changes in the value

of such securities are included in determining earnings.Investments in available-for-sales securities, both held for short-term and long-term investment, are determined at fair

value. Changes in the value of such securities are shown as a seperate item in shareholders’ equity until the securities are sold,when the changes are then included in determining earnings.

Investments in debt securities expected to be held to maturity are determined at amortised cost. Premiums/discounts ondebt securities are amortised based on a straight-line basis over the remaining period to maturity for other debt securities. Theamortised amount is presented as an adjustment to the interest income.

The fair value of marketable securities is based on the latest bid price on the last working day of the period as quoted onthe Stock Exchange of Thailand. The fair value of government and state enterprise securities, and private sector debt securities isdetermined using the formula determined by the BOT and the yield rates quoted by the Thai Bond Dealing Center or other financialinstitutions, adjusted by an appropriate risk factor. The fair value of unit trusts is determined based on their net asset value.

Investments in non-marketable equity securities which are classified as general investments are valued at cost.Losses on impairment (if any) of investments are included in determining earnings.The weighted average method is used for computation of the cost of investments.In cases where there is reclassification of investment type, the investments are valued at their fair value prevailing on the

reclassification date. Differences between the carrying amount of the investments and their fair value on that date are included indetermining earnings or recorded as revaluation surplus (deficit) of investments and presented as a separate item in shareholders’equity to be amortised over the remaining period to maturity of the debt securities, as the case may be.

4.5 PROMISSORY NOTES RECEIVED IN CONNECTION WITH TRANSFER OF NON-PERFORMING LOANS TO TAMCPromissory notes received in connection with the transfer of non-performing loans to Thai Asset Management

Corporation (“TAMC”), which are avaled by the Financial Institutions Development Fund (“the FIDF”), are regarded asinvestments in debt securities expected to be held to maturity and therefore stated at cost. Interest income on the promissory notesis recognised on an accrual basis using the weighted average interest rate announced by 5 commercial banks for the previousquarter. The Bank will recognise income or expenses with respect to gain or loss sharing from the management of non-performingloans at the end of the fifth and tenth years, when the Bank receives allocation from the TAMC, or when the gain or loss can beaccurately estimated.

4.6 INVESTMENT IN SUBSIDIARY AND ASSOCIATED COMPANIESInvestments in subsidiary and associated companies, except for investments that the Bank intends to hold temporarily,

are accounted for under the equity method. Under this method, investments are initially recorded at the acquisition cost and areadjusted to reflect the attributable share of the profits or losses from the operations of each subsidiary and associated company,in proportion to the investment. The difference between the cost of the investment and the net book value at the acquisition dateis amortised over 10 years.

If the Bank receives shares as a result of debt restructuring of a borrower and as a result of such acquisition holds morethan 50 percent or 20 percent of the shares of such company, the Bank will not treat the Company as a subsidiary company ora associated company, respectively, as it intends to hold such investments temporarily.

If the Bank has no commitments or guarantee obligations to its subsidiary and associated companies, losses arerecognised only to the extent that they do not exceed the outstanding balance of investments.

4.7 LOANS/SECURITIES BUSINESS RECEIVABLES/HIRE PURCHASE RECEIVABLES/FINANCE LEASE RECEIVABLESThe Bank and its subsidiary present loans at the principal balances excluding accrued interest receivable, with the

exception of bank overdrafts, which are presented inclusive of accrued interest receivable. Unrealised deferred income anddiscounts on loans are deducted from the loan balances.

Securities business receivables comprise the net receivable balance of cash accounts and credit balance accountssecured by the purchased securities, as well as other receivables, which consist of overdue debtors and securities businessreceivables currently subject to legal proceedings, which are undergoing restructuring or settling in installments.

Hire purchase and finance lease receivables are stated at net realisable value, deducting unearned hire purchase andfinance lease income.

4.8 ALLOWANCE FOR DOUBTFUL ACCOUNTS(a) For loans of banking business

The Bank provides allowance for doubtful accounts for debtors, which are not to be compensated for under theGain/Loss Sharing and Yield Maintenance Agreement, in accordance with the notifications of the Bank of Thailand.

The criteria for loan loss provisioning as determined by the Bank of Thailand include loan classification criteria,loan loss provisioning rates, valuation of collateral to be used in determining allowance for doubtful debts, and criteriafor reclassification of restructured loans to normal classification.

Additional allowance for doubtful accounts is included in expenses for the period.

36

Amounts written off as bad debts are deducted from the allowance for doubtful accounts and in case of recoverybeing made from bad debts, the recovered amount is added to the allowance for doubtful accounts.

(b) For securities business receivablesA subsidiary provides allowance for doubtful debts which are not to be compensated for under the Gain/Loss

Sharing and Yield Maintenance Agreement based on a review of debtor’s ability to make repayment, taking intoconsideration recovery risk and the value of the collateral. Allowance is set aside for doubtful debts not fully coveredby collateral and/or those expected not to be fully recoverable. Debt classifications and provisions are made inaccordance with the guidelines laid down in the Notification No. Kor. Thor. 33/2543, dated 25 August 2000, asamended by the Notification No. Kor. Thor. 5/2544, dated 15 February 2001, of the Office of the Securities andExchange Commission, and consideration of other relevant factors.

(c) For hire purchase receivables and finance lease receivablesAllowance for doubtful accounts is made for hire purchase receivables based on percentages of the outstanding

installment contract receivable balance, net of unearned income. The provisioning rates are vary according to thenumber of overdue installments.

4.9 TROUBLED DEBT RESTRUCTURING AND LOSSES FROM TROUBLED DEBT RESTRUCTURINGThe Bank and its subsidiary record troubled debt restructuring transactions and relevant losses which are not to be

compensated for under the Gain/Loss Sharing and Yield Maintenance Agreement with reference to the notifications ofthe Bank of Thailand.(a) For loans of banking business

In cases where the troubled debt restructuring involves modifications of the terms or relaxation of the repaymentconditions, the fair value of loans after restructuring is determined based on the net present value of expected futurecash flows, discounted by the Minimum Loan Rate (MLR) being quoted to the debtors at the restructuring date. Thedifference between the fair value of loans and receivables at the restructuring date and the previous book value isaccounted for as revaluation allowance for debt restructuring and included as expenses in the statements of earningsfor the period. The Bank adjusts the revaluation allowance for debt restructuring at the end of every period byre-calculating the net present value of expected cash flows, discounted by the Minimum Loan Rate (MLR) beingquoted to the debtor at the end of the period.

Losses arising from debt restructuring through waiver of part of the principal or recorded accrued interestreceivable after deduction the provided allowance (if any) will be charged against the statements of earnings whendebtors have completely complied with all conditions as stipulated in the agreements.

The Bank records revaluation allowance for debt restructuring and losses from debt restructuring through waiverof part of the principal or accrued interest receivable for debts which are not compensated for under the Gain/LossSharing and Yield Maintenance Agreement.

(b) For margin loans of securities businessUnder the subsidiary’s accounting policy for troubled debt restructuring, if payment of debt is received through the

transfer of property, or financial instruments, or if share capital of the debtor is received as a result of a debt to equityswap, the subsidiary records the assets received at their fair value. Losses arising from differences between the bookvalue of the debt and the fair value of the assets, debt collection expenses and allowances for doubtful debts whichare to be compensated for under the Gain/Loss Sharing and Yield Maintenance Agreement are recorded as assets/liabilities in the balance sheet to be used in determining gain/loss sharing with the Financial Institutions DevelopmentFund (“the FIDF”) on 31 December 2005.

If debt restructuring includes the provision of a waiver of debt repayment conditions to the debtor, the subsidiaryrecords the losses arising from the revaluation of the book value of the debtor, determined on the basis of the presentvalue of the future cash flows to be received under the new conditions, and using the Minimum Loan Rate (MLR) indiscounting, or the fair value of the collateral. Any amount by which the newly determined book value is lower thanthe previous book value, including interest receivables, is recorded as revaluation allowance for debt restructuring bytransferring from allowance for doubtful accounts except that the allowance for doubtful accounts is inadequate, thenshortage will be recognised as expenses for such period.

4.10 PROPERTIES FORECLOSEDProperties foreclosed which are not to be compensated for under the Gain/Loss Sharing and Yield Maintenance

Agreement are stated at the lower of cost or net realisable value with reference to the latest available appraisal value lessestimated selling expenses.

The Bank and its subsidiary record gains or losses on disposal of properties foreclosed which are to be compensatedfor under the Gain/Loss Sharing and Yield Maintenance Agreement as assets/liabilities in the balance sheet to be used indetermining gain/loss sharing with the FIDF at the end of the compensation period.

4.11 PREMISES AND EQUIPMENT AND DEPRECIATIONEquipment is stated at cost less accumulated depreciation and allowance for impairment (if any).Land and buildings are stated at cost less accumulated depreciation and allowance for impairment (if any).Premises and equipment acquired as a result of merger are stated at their book value on the transfer date, which is

regarded as the new acquisition cost, less accumulated depreciation and allowance for impairment (if any).Depreciation of building and equipment is calculated by reference to their costs on a straight-line basis over the

following estimated useful lives.Buildings - 20 - 40 yearsEquipment - 5 years

Depreciation is included in determining earnings.No depreciation is determined for land and assets under construction.

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4.12 LEASEHOLD RIGHTSLeasehold rights are stated at cost less accumulated amortisation. Leasehold rights are amortised on a straight-line

basis over the lease periods and are included as expenses in the statements of earnings.

4.13 EXPENSES IN CONNECTION WITH DEVELOPMENT OR IMPROVEMENT OF COMPUTER SYSTEMSExpenses in connection with development or improvement of computer systems are regarded as assets only to the

extent that such expenses materially improve the capability or efficiency of the computer systems. They are amortised to expensesin the statements of earnings on a straight-line basis over a period of 5-10 years.

4.14 FOREIGN CURRENCIESForeign currency transactions during the period have been translated into Baht at the rates ruling on the transaction

dates. Assets and liabilities in foreign currencies outstanding on the balance sheet dates have been translated into Baht at therates announced by the Bank of Thailand ruling on the balance sheet dates.

Exchange gains and losses are included in determining earnings.

4.15 FINANCIAL DERIVATIVESObligations under financial derivatives contracts are regarded as off-balance sheet items. The accounting treatments

for financial derivatives transactions depends on the purpose of the transaction as follows :-(a)Trading transactions

Obligations under financial derivatives contracts originated for trading purposes are stated at fair value. Gains/Losses arising from changes in value are included in determining earnings.

(b)Non-trading transactionsDerivatives classified as non-trading transactions are measured on an accrual basis equivalent to that used for

the underlying asset and liability, as follows :-(1)Foreign currency elements are translated into Baht at the rates ruling on the balance sheet dates announced by

the Bank of Thailand.(2) Interest elements are recorded on an accrual basis.

4.16 PENSION FUNDThe Bank has a policy to pay pension benefits to employees with more than 10 years of service and who resign in

accordance with the rules and conditions stipulated by the Bank. Pension funds are reserved and charged to expenses in thestatements of earnings based on the number of years of service by each employee. In the event that any employee resigns and isnot entitled to receive pension benefits, the Bank will reverse the pension fund contributions already reserved for such employeeand charge the amount against the statements of earnings for the year in which he/she resigns.

Such pension benefit only provides to employees who are former employees of the Union Bank of Bangkok PublicCompany Limited.

4.17 PROVIDENT FUNDThe Bank and its employees have jointly established a provident fund scheme under the Provident Fund Act B.E.

2530, and the fund was registered with and approved by the Ministry of Finance on 29 December 1999. The employeescontribute to the fund at rates of between 3 - 5 percent of their basic salaries and the Bank contributes at the rate of 5 percent,according to the following conditions :-

1. Employees who had officially joined the Bank and applied for membership of the fund before 31 December 1999will receive one hundred percent of the contributions and all benefits upon termination of this membership.

2. For employees who officially joined the Bank and applied for membership of the fund since 1 January 2000, theBank will make contributions and pay benefits from the fund according to the following conditions :-

Years of service Percentage of contributions and benefits thereof (Percent)

Less than 5 years 05 years or more 100

Some subsidiaries and their employees have jointly established a provident fund scheme under the Provident Fund ActB.E. 2530. The employees contribute to the fund at rates of 3-5 percent of their basic salaries and the subsidiaries contribute atthe rate of 5 percent. The fund will be paid to the employees upon termination in accordance with the rules of the fund.

4.18 TREASURY STOCKTreasury stock, which is the Bank’s ordinary shares purchased by the Bank itself or its subsidiaries, is carried at cost

and is deducted in shareholders’ equity. Gains and losses on disposal of treasury stock are taken to “Premium on treasury stock”or “Retained earnings”.

4.19 EARNINGS PER SHAREEarnings per share as presented in the statements of earnings is basic earnings per share which is calculated by

dividing net earnings for the year by the weighted average number of ordinary shares in issue and held by third parties during theyear (net from treasury stocks held by the Bank and its subsidiaries).

The Bank did not present diluted earnings per share for the year ended 31 December 2005 and 2004 as the exerciseprice of a warrant to buy convertible preference share is higher than the fair value of the Bank’s ordinary share.

4.20 USE OF ACCOUNTING ESTIMATESPreparation of financial statements in conformity with generally accepted accounting principles requires management of

the Bank and its subsidiaries to make estimates and assumptions that affect the reported amounts of revenues, expenses, assetsand liabilities and disclosures of contingent assets and liabilities. Actual results may differ from those estimates.

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5. COMPENSATION OF COVERED ASSET POOL5.1 THE GAIN/LOSS SHARING AND YIELD MAINTENANCE AGREEMENT

On 1 February 2001, the Bank entered into the Gain/Loss Sharing and Yield Maintenance Agreement with the FinancialInstitutions Development Fund (“the FIDF”) in accordance with the terms and conditions unanimously approved by the Cabinet on19 September 2000 for the provision of compensation for the non-performing assets of the Bank and the 12 finance companiesordered closed, on the basis of yield maintenance and gain/loss sharing. Significant contents stipulated in the agreement aredescribed below :-

5.1.1 The period for compensating the Bank for the non-performing assets is 5 years, commencing as from 1 January2001.

5.1.2 The non-performing assets for which the Bank is to be compensated by the FIDF (collectively called the “CoveredAsset Pool” or “CAP”) comprise:

The total outstanding balance of non-performing assets to be compensated under the Gain/Loss Sharing andYield Maintenance Agreement are the amounts of non-performing assets transferred from the Union Bank ofBangkok Public Company Limited and the 12 finance companies as at 31 December 1999, totaling approximatelyBaht 197,462 million. This consists of loans classified as substandard, doubtful and bad debt amounting toapproximately Baht 188,690 million, margin loans retained at Krung Thai Thanakit Finance Public CompanyLimited and Thaithanakit Securities Company Limited (now known as BT Securities Company Limited) totalingapproximately Baht 3,020 million, and investments in securities with net book value higher than market valueamounting to Baht 5,752 million. Provisions totaling Baht 112,495 million (so called “Notional Provision”) weremade against those non-performing assets.

5.1.3 Yield maintenanceThe FIDF agreed to pay compensation to the Bank, after deducting other income received from CAP assets per

the details stipulated in the agreement, to maintain the yield from the CAP assets at the rate of the average depositinterest rate of the Bank over the relevant period plus 1 percent, based on the average outstanding balance of CAPassets less related provisions. Examples of other income are income from sales of securities licenses, and 85percent of gains from the disposal of the land and business premises of the 12 finance companies and the UnionBank of Bangkok Public Company Limited.

5.1.4 Gain/Loss SharingIf the recovery from CAP assets is less than their net book value (representing the outstanding balance less

provision), resulting in losses to the Bank, the FIDF will share such losses with the Bank using the gain/losssharing method detailed below, by means of a one time compensation payment made at the end of thecompensation period in the fifth year.

(a) If accumulated losses exceed booked provisions but are not greater than the Notional Provision of Baht112,495 million, the FIDF will accept 100 percent of the losses.

(b) If accumulated losses exceed the Notional Provision, the FIDF will accept 85 percent of the excess lossesand the Bank will take 15 percent accordingly.

(c) The Bank will receive 5 percent of income collected in excess of outstanding balance after deductingNotional Provision (Expected recovery).

As at 31 December 2005 and 2004, the Bank and its subsidiaries had certain commitments and contingentliabilities under the Gain/Loss Sharing and Yield Maintenance Agreement referred to above in respect of the risk from its sharingof 15 percent of the losses arising as a result of the estimated irrecoverable value of assets calculated at the end of thecompensation period exceeding the Notional Provision, and the risk that the future net realisable value of the restructured debtsmay be lower than their buy back prices (net present value) as calculated at the end of the compensation period. In the case ofgain, the Bank will receive a sharing at 5 percent.

As at 31 December 2005 and 2004, the amount of such gains/losses cannot be reasonably estimated, and theBank and its subsidiaries have therefore not recognised any future gains/losses that may occur as a result of the above obligationsin their accounts. However, the Bank’s and its subsidiaries’ management believe that no significant future losses will be incurred.

After the Gain/Loss Sharing and Yield Maintenance Agreement expired on 31 December 2005, in January andFebruary 2006 the FIDF made partial payment of notional provision to the Bank amounting to Baht 58,895 million (net of theoutstanding balance of notes payable to the FIDF of Baht 22,000 million). The Bank is currently in the process of auctioning theassets under the Gain/Loss Sharing and Yield Maintenance Agreement and clearing commitments under the agreement. Thegain/loss sharing process is expected to be finalised within June 2006.

5.2 IMPACT OF SIGNIFICANT EVENTS OCCURRING AFTER EXECUTING THE AGREEMENTAs at 31 December 2005, the Bank has non-performing loans totaling Baht 82,352 million (2004 : Baht 82,428

million) under the Covered Asset Pool (“CAP”) transferred to TAMC in accordance with the Emergency Decree establishingTAMC, at a total transfer price of Baht 22,393 million (2004 : Baht 22,282 million) and has incurred losses on these transfers,which are suspended and recorded as receivable from the FIDF, amounting to Baht 59,959 million (2004 : Baht 60,146million). As the transfer of non-performing loans under the Emergency Decree occurred subsequent to the date of the Gain/LossSharing and Yield Maintenance Agreement, the impact of such transfer on yield maintenance income and gain/loss sharingdetermination is therefore not mentioned in the agreement. However, the Bank holds that the FIDF must continue to compensatefor the non-performing loans transferred to TAMC in accordance with the principles and spirit of the existing agreement. This is incompliance with the guidelines laid down by the Bank of Thailand for the Bank’s management. The matter is currently beingconsidered by the authorities.

5.3 THE OUTSTANDING BALANCE OF CAP ASSETSAs at 31 December 2005 and 2004, the following CAP assets and related provision transferred under the Gain/Loss

Sharing and Yield Maintenance Agreement are outstanding in the Bank’s and subsidiaries’ books :-

39

(Unit: Million Baht)Consolidated The Bank only

2005 2004 2005 2004

Loans and interest receivables 52,178 62,463 50,211 60,414Interbank and money market items - assets 172 172 172 172Investments in securities 2,846 4,031 3,055 4,237Properties foreclosed 3,285 5,540 3,279 5,538Losses from non-performing loans transferred to TAMC and losses

from management of assets in CAP which are presented asreceivables from the FIDF (Note 15) 69,860 65,223 69,825 65,225

Total(1) 128,341 137,429 126,542 135,586Notional provision already provided by FIDF set up and

outstanding in the accounts(2) 20,054 20,535 18,221 18,696(1) Does not include non-performing loans in CAP which were transferred to TAMC. Accumulated transfer prices as at 31 December 2005 and 2004

totalled Baht 22,393 million and Baht 22,282 million, respectively.(2) Does not include allowance for impairment losses amounting to Baht 1,842 million on CAP investments already disposed of as at 31 December

2005 (2004 : Baht 1,400 million). Such amounts were presented as part of losses from management of assets in CAP and suspended asreceivable from the FIDF.

As at 31 December 2005, the Bank and its subsidiaries have provided allowances for doubtful debts for non-performingCAP assets totaling Baht 20,054 million (consisting Baht 18,221 million for the Bank and Baht 1,833 million for the subsidiary,but excluding allowance of Krung Thai Thanakit Finance Public Company Limited amounting to Baht 293 million). Such provisionsare regarded as losses already compensated by the FIDF. Any loss in excess of such provision will be compensated as discussedin 5.1.4 regarding gain/loss sharing.

As at 31 December 2005, the Bank and the FIDF are in dispute over the collateral for CAP loans which the Bankacquired through auctions arranged by Department of Legal Execution. In a letter dated 16 August 2005, the FIDF stated thatsuch collateral should be classified as CAP assets and therefore gains from sales of such property foreclosed should be classifiedas gains from CAP assets and shared under the CAP agreement at the end of the agreement, and not gains of the Bank from saleof Non CAP property foreclosed, as recorded by the Bank. Up to 31 December 2005, the Bank had recorded gains from salesof such property foreclosed amounting to Baht 233 million, including gains for the year ended 31 December 2005 of Baht 152million. Under letter dated 7 November 2005, the Bank informed the FIDF that it disagreed with the FIDF’s interpretation, sincethe assets were acquired by the Bank through open and transparent auctions arranged by Department of Legal Execution, and theCAP agreement contains no prohibition on the acquisition of such assets by the Bank. The Bank used its own funds to acquire theassets and accepts the risks of such acquisitions. These acquisitions began in 2001 and it takes a number of years to disposeof the assets. In addition, the Bank has not included the amounts of these acquisitions in its yield maintenance income calculation.As at 31 December 2005, negotiations are ongoing, but the Bank’s management believe that the Bank’s interpretation is inaccordance with the conditions of the agreement, and the Bank has therefore not yet adjusted such transaction. If adjustment weremade to be accord with the FIDF’s interpretation, profit for the years 2005 and 2004 would decrease by Baht 152 million andBaht 62 million, respectively, and the ending balances of retained earnings as at 31 December 2005 and 2004 would decreaseby Baht 233 million and Baht 81 million, respectively.

In addition, on 29 November 2005, the Bank sent a letter to the FIDF, requesting that it refund allowance for doubtfuldebts of Baht 774 million (including revaluation allowance for debt restructuring) which have been held by the FIDF to beallowance for CAP assets under the Gain/Loss Sharing and Yield Maintenance Agreement since the commencement date of theagreement, returning them to allowance for Non CAP assets. As at 31 December 2005, such allowance is presented as a partof allowance for doubtful debt for CAP loans in accordance with the FIDF’s interpretation. However, the Bank believes that it willreceive approval to transfer such allowance for doubtful debts from CAP loans to Non CAP loans. On 24 February 2006, theBank received a letter from the FIDF accepting the Bank’s request for consideration, and FIDF is in the process of examining thetransactions and deciding whether to approve the Bank’s request.

As from the end of year 2005, the Bank has been in the process of auctioning outstanding CAP assets of approximatelyBaht 58,000 million which all are expected to be sold within March 2006. Such sales of CAP assets will be effective when theyhave been examined, with the effective date being the day after the maturity date of the CAP Agreement (31 December 2005).

5.4 YIELD MAINTENANCE INCOMEYield maintenance income is recognised in accordance with the conditions stipulated in the Gain/Loss Sharing and

Yield Maintenance Agreement dated 1 February 2001 and its amendments dated 9 October 2002, as already discussed in5.1 and 5.2.

The transfer of non-performing loans under such agreement to Thai Asset Management Corporation (“TAMC”) inaccordance with the Emergency Decree establishing TAMC in 2001 is not referred to in the agreement. However, the Bank’smanagement believes that the FIDF will have to continue to compensate for these transferred assets in accordance with the spiritand principle of the existing agreement. The Bank therefore continues to record yield maintenance income on the basis ofthe conditions stipulated in the agreement whereby interest income on promissory notes issued by TAMC for the transferrednon-performing loans is deducted in the calculation of yield maintenance income, in accordance with the guidelines laid down bythe Bank of Thailand. As at 31 December 2005, the outstanding balance of such yield maintenance income receivable was Baht8,415 million (total balance of Baht 9,200 million net of provision for unrecoverable portion of Baht 785 million). The Bank isregularly following up on this outstanding issue and it is currently being considered by the authorities. However, the Bank’smanagement believes that the amount it will receive will not significantly differ from the recorded amount.

Yield maintenance income recognised by the Bank and its subsidiaries and outstanding as at 31 December 2005 and2004 can be summarised as follows :-

40

(Unit: Million Baht)Consolidated The Bank only

2005 2004 2005 2004

1. Yield maintenance income payable under examination orawaiting examination by the FIDF 79 (168) 81 (169)

2. Yield maintenance income payable to the FIDF (85) - (85) -3. Yield maintenance income receivable on non-performing loans

already transferred to TAMC pending approval by the authority 9,200 7,412 9,200 7,412(accumulated from transfer date to balance sheet dates)

4. Yield maintenance income receivable about which there isdisagreement between the Bank and the FIDF - 61 - 61Total yield maintenance income receivable at the end of the years 9,194 7,305 9,196 7,304Less : Provision for unrecoverable portion of yield maintenance income (809) (785) (809) (785)Yield maintenance income receivable - end of years, net 8,385 6,520 8,387 6,519

The actual amount receivable from the FIDF and the yield maintenance income that will be received is dependent uponthe results of examination by the FIDF, the resolution of the outstanding issues, decisions to be made by the authorities with regardto the non-performing loans transferred to Thai Asset Management Corporation (“TAMC”), and additional amendments (if any)to be made to the Gain/Loss Sharing and Yield Maintenance Agreements. It could therefore differ from the recorded amount. TheBank has recognised yield maintenance income based on estimates, which rely on assumptions as to certain outcomes. However,the Bank’s management believes that the amount it will receive will not significantly differ from the recorded amount as the FIDFhas obligations to the Bank under the Gain/Loss Sharing and Yield Maintenance Agreement.

6. AGREEMENT TO TRANSFER NON-PERFORMING LOANS TO TAMCOn 12 October 2001, the Bank entered into an agreement to transfer non-performing loans to Thai Asset Management

Corporation (“TAMC”) in accordance with the Emergency Decree establishing TAMC.As at 31 December 2005 and 2004, loans transferred to TAMC can be classified into loans under Covered Asset Pool

(“CAP”) and those not under the Cover Asset Pool (“NON CAP”) as follows :-(Unit: Million Baht)

Consolidated and the Bank only2005

Losses from Accounting forLoans transferred to TAMC Book value Transfer price transfer of loans losses from transfer

CAP 82,352 22,393 59,959 - Suspended as receivables from theFIDF awaiting compensation

NON CAP 15,774 3,520 12,254 - Reduction of allowance fordoubtful debts

Total 98,126 25,913 72,213Less : Transfer prices for which TAMC notes

have yet to be received by the Bank whichincluded in other assets (under examinationby TAMC to confirm price) (Note 17) (106)

: TAMC notes which have been redeemed by TAMC (10,642)TAMC notes already received from TAMC (whichincluded in held-to-maturity debt securities) (Note 9.1) 15,165

(Unit: Million Baht)Consolidated and the Bank only

2004Losses from Accounting for

Loans transferred to TAMC Book value Transfer price transfer of loans losses from transfer

CAP 82,428 22,282 60,146 - Suspended as receivables from theFIDF awaiting compensation

NON CAP 15,774 3,520 12,254 - Reduction of allowance fordoubtful debts

Total 98,202 25,802 72,400Less : Transfer prices for which TAMC notes

have yet to be received by the Bank whichincluded in other assets (under examinationby TAMC to confirm price) (Note 17) (27)

: TAMC notes which have been redeemed by TAMC (7,454)TAMC notes already received from TAMC (whichincluded in held-to-maturity debt securities) (Note 9.1) 18,321

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The Bank is to be received payment in the form of non-transferable, 10-year promissory notes, avaled by the FIDF andbearing interest at the average deposit rate of the 5 major banks. Interest is payable annually. As at 31 December 2005 and2004, the Bank recognised interests Baht 149 million and Baht 175 million, respectively, on TAMC notes, which are stilloutstanding and for which TAMC notes have yet to be received by the Bank.

Under the agreement to transfer non-performing loans to TAMC, the Bank also has joint responsibility with TAMC for a shareof the gains and losses arising from TAMC’s management of the non-performing loans, which is to be allocated at the end of thefifth and tenth years, commencing from 1 July 2001. In case of losses, the Bank is liable for all initial losses up to 20 percent ofthe transfer price. Further losses of up to another 20 percent of the transfer price are to be shared equally between the Bank andTAMC, while TAMC is liable for all remaining losses. According to the agreement, expenses of TAMC and the interest expensesof promissory notes issued by TAMC will be included in the calculation of the gain/loss sharing. In case of gains, initial profits ofup to 20 percent of the transfer price are to be shared equally between the Bank and TAMC. Further gains, when combined withthe initial portion do not exceed the difference between the book value of the transferred non-performing assets and their transferprice, belong to the Bank. All remaining gains will belong to TAMC.

As at 31 December 2005, the amount of such gains/losses cannot be reasonably estimated, and the Bank has thereforenot recognised for any gains/losses that may occur as a result of the above obligations in its accounts. However, the Bank’smanagement believes that no significant future losses will be incurred.

7. INTERBANK AND MONEY MARKET ITEMS (ASSETS)(Unit : Million Baht)

Consolidated2005 2004

At call Term Total At call Term TotalDomestic :-Bank of Thailand and the Financial Institutions

Development Fund 1,417 - 1,417 1,586 - 1,586Commercial banks 663 376 1,039 570 4,550 5,120Other banks 11 50 61 4 60 64Finance, finance and securities, securities,

and credit foncier companies 173 3,354 3,527 173 3,309 3,482Other financial institutions 102 92 194 59 65 124Total domestic items 2,366 3,872 6,238 2,392 7,984 10,376Add : Accrued interest receivables 1 - 1 1 - 1Less : Allowance for doubtful debts - (20) (20) - (20) (20)

Domestic items - net 2,367 3,852 6,219 2,393 7,964 10,357Foreign :-US dollar 158 6,325 6,483 10 3,653 3,663Yen 18 - 18 11 - 11EURO 28 - 28 24 - 24Other currencies 42 - 42 22 - 22Total foreign items 246 6,325 6,571 67 3,653 3,720Add : Accrued interest receivables - 39 39 - 3 3

Foreign items - net 246 6,364 6,610 67 3,656 3,723Domestic and foreign items - net 2,613 10,216 12,829 2,460 11,620 14,080

(Unit : Million Baht)The Bank only

2005 2004

At call Term Total At call Term TotalDomestic :-Bank of Thailand and the Financial Institutions

Development Fund 1,417 - 1,417 1,586 - 1,586Commercial banks 589 300 889 545 4,500 5,045Other banks 2 - 2 2 - 2Finance, finance and securities, securities,

and credit foncier companies 173 3,464 3,637 173 3,504 3,677Other financial institutions 102 88 190 59 55 114Total domestic items 2,283 3,852 6,135 2,365 8,059 10,424Add : Accrued interest receivables - 1 1 - 2 2Less : Allowance for doubtful debts - (20) (20) - (20) (20) Domestic items - net 2,283 3,833 6,116 2,365 8,041 10,406Foreign :-US dollar 158 6,325 6,483 10 3,653 3,663Yen 18 - 18 11 - 11EURO 28 - 28 24 - 24Other currencies 42 - 42 22 - 22

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(Unit : Million Baht)The Bank only

2005 2004

At call Term Total At call Term Total

Total foreign items 246 6,325 6,571 67 3,653 3,720Add : Accrued interest receivables - 39 39 - 3 3 Foreign items - net 246 6,364 6,610 67 3,656 3,723

Domestic and foreign items - net 2,529 10,197 12,726 2,432 11,697 14,129

8. SECURITIES PURCHASED UNDER RESALE AGREEMENTS(Unit : Million Baht)

Consolidated The Bank only

2005 2004 2005 2004

Government bonds and Bank of Thailand bonds 2,200 3,000 2,200 3,000

Total securities purchased under resale agreements 2,200 3,000 2,200 3,000

9. INVESTMENTSInvestments, which will not be compensated for under the Gain/Loss Sharing and Yield Maintenance Agreement, are

presented in the manners discussed in the accounting policies, whilst investments included in the Covered Asset Pool under suchagreement are presented at the book value, transferred at as a result of a merger. The Bank and its subsidiaries do not revaluetheir investments under such agreement to be stated at fair value as the management believes that any loss will be compensatedfor in full at the end of the above agreement.

As at 31 December 2005 and 2004, investments can be classified into investments under the Covered Asset Pool (“CAP”)and those not under the Covered Asset Pool (“NON CAP”) as summarised below :-

(Unit : Million Baht)Consolidated

2005 2004CAP NON CAP TOTAL CAP NON CAP TOTAL

Value at cost method/equity method 15,953 49,782 65,735 19,615 19,578 39,193Less : Allowance for revaluation (11) (432) (443) (313) (348) (661)

Allowance for impairment (486) (477) (963) (659) (551) (1,210)

Net book value 15,456 48,873 64,329 18,643 18,679 37,322

(Unit : Million Baht)The Bank only

2005 2004CAP NON CAP TOTAL CAP NON CAP TOTAL

Value at cost method/equity method 16,162 50,399 66,561 19,821 19,721 39,542Less : Allowance for revaluation (11) (409) (420) (313) (340) (653)

Allowance for impairment (486) (476) (962) (659) (550) (1,209)

Net book value 15,665 49,514 65,179 18,849 18,831 37,680

9.1 CLASSIFIED BY TYPES OF INVESTMENT(Unit : Million Baht)

Consolidated2005 2004

Cost/Amortised Cost/Amortisedcost Fair value cost Fair value

CAP NON CAP CAP NON CAP CAP NON CAP CAP NON CAP

Short-term investments :Securities held for trading

Government and state enterprises securities- 244 - 244 - 86 - 86Private sector debt securities - 139 - 139 - - - -Overseas debt securities - - - - - - - -Domestic marketable equity securities - 42 - 44 - 60 - 61

Total - 425 - 427 - 146 - 147Add : Allowance for revaluation - 2 - - - 1 - -

Securities held for trading - net - 427 - 427 - 147 - 147

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(Unit : Million Baht)Consolidated

2005 2004Cost/Amortised Cost/Amortised

cost Fair value cost Fair valueCAP NON CAP CAP NON CAP CAP NON CAP CAP NON CAP

Available-for-sales securitiesGovernment and state enterprises securities - 2,557 - 2,553 - 368 - 368Private sector debt securities 247 2,303 - 2,291 340 343 - 336Overseas debt securities - 617 - 615 - - - -Domestic marketable equity securities - 57 - 30 - 79 - 63

Total 247 5,534 - 5,489 340 790 - 767Less : Allowance for revaluation - (45) - - - (23) - - Allowance for impairment (27) - - - (27) - - -

Available-for-sales securities - net 220 5,489 - 5,489 313 767 - 767

Held-to-maturity debt securitiesGovernment and state enterprises securities - 758 - 248Overseas debt securities - 1,213 - -

Total - 1,971 - 248

Short-term investments - net 220 7,887 313 1,162Long-term investments :Available-for-sales securities

Government and state enterprises securities - 999 - 937 - 1,575 - 1,499Private sector debt securities - 1,891 - 1,805 36 3,593 - 3,545Domestic marketable equity securities 336 3,032 318 2,791 836 3,290 1,443 3,088

Total 336 5,922 318 5,533 872 8,458 1,443 8,132Less : Allowance for revaluation (11) (389) - - (313) (326) - -

Available-for-sales securities - net 325 5,533 318 5,533 559 8,132 1,443 8,132Held-to-maturity debt securities

Promissory notes issued by TAMC 13,108 2,057 15,584 2,737Government and state enterprises securities - 6,833 - 3,404Private sector debt securities - - - 20Overseas debt securities - 24,741 - 1,074

Total 13,108 33,631 15,584 7,235General investments

Private sector debt securities - 2 - 2Domestic marketable equity securities 502 4 500 4Domestic non-marketable equity securities 1,698 1,712 2,253 1,589Overseas non-marketable equity securities 1 8 - 8Investments in receivables 2 335 5 709

Total 2,203 2,061 2,758 2,312Less : Allowance for impairment (459) (383) (630) (458)

General investments- net 1,744 1,678 2,128 1,854

Long-term investments - net 15,177 40,842 18,271 17,221

(Unit : Million Baht)The Bank Only

2005 2004Cost/Amortised Cost/Amortised

cost Fair value cost Fair valueCAP NON CAP CAP NON CAP CAP NON CAP CAP NON CAP

Short-term investments :Securities held for trading

Government and state enterprises securities - 201 - 201 - - - -Private sector debt securities - 89 - 89 - - - -

Total - 290 - 290 - - - -Add : Allowance for revaluation - - - - - - - -

Securities held for trading - net - 290 - 290 - - - -

44

(Unit : Million Baht)The Bank Only

2005 2004Cost/Amortised Cost/Amortised

cost Fair value cost Fair valueCAP NON CAP CAP NON CAP CAP NON CAP CAP NON CAP

Available-for-sales securitiesGovernment and state enterprises securities - 2,557 - 2,553 - 368 - 368Private sector debt securities 247 2,303 - 2,291 340 343 - 336Overseas debt securities - 617 - 615 - - - -

Total 247 5,477 - 5,459 340 711 - 704 Less : Allowance for revaluation - (18) - - - (7) - -

Allowance for impairment (27) - - - (27) - - -

Available-for-sales securities - net 220 5,459 - 5,459 313 704 - 704Held-to-maturity debt securities

Government and state enterprises securities - 723 - 103Overseas debt securities - 1,213 - -

Total - 1,936 - 103

Short-term investments - net 220 7,685 313 807Long-term investments :Available-for-sales securities

Government and state enterprises securities - 999 - 937 - 1,560 - 1,499Private sector debt securities - 1,891 - 1,805 36 3,593 - 3,545Domestic marketable equity securities 336 3,002 318 2,759 836 3,269 1,443 3,045

Total 336 5,892 318 5,501 872 8,422 1,443 8,089 Less : Allowance for revaluation (11) (391) - (313) (333) - -

Available-for-sales securities - net 325 5,501 318 5,501 559 8,089 1,443 8,089Held-to-maturity debt securities

Promissory notes issued by TAMC 13,108 2,057 15,584 2,737Government and state enterprises securities - 6,823 - 3,393Overseas debt securities - 24,741 - 1,075

Total 13,108 33,621 15,584 7,205General investments

Private sector debt securities - 2 - 2Domestic marketable equity securities 502 4 500 4Domestic non-marketable equity securities 1,698 1,710 2,253 1,588Overseas non-marketable equity securities 1 8 - 8Investments in receivables 2 335 5 709

Total 2,203 2,059 2,758 2,311Less : Allowance for impairment (459) (382) (630) (458)

General investments - net 1,744 1,677 2,128 1,853

Long-term investments - net 15,177 40,799 18,271 17,147

(a) As at 31 December 2005, the Bank had investments in overseas 3-10 year term notes amounting to approximatelyUSD 603 million, or equivalent to Baht 24,741 million, presented as held-to-maturity debt securities. Certain of these noteshave conditions on the interest to be received by the Bank and early repayment rights for the note issuers.

(b) As at 31 December 2005, held-to-maturity debt securities classified as long-term investments included promissorynotes of Baht 15,165 million (2004 : Baht 18,321 million) which were received from TAMC in settlement for non-performingloans transferred to TAMC (as already discussed in Note 6 to the financial statements). Such promissory notes arenon-transferable and avaled by the Financial Institutions Development Fund.

(c) As at 31 December 2005, the Bank has an investment in the Vayupak Fund 1, which is a marketable security. The costof such investment is Baht 2,500 million and it is presented at its fair values of Baht 2,295 million. The loss from revaluationamounting to Baht 205 million are presented in shareholders’ equity. The presentation of fair value is in accordance withAccounting Standard No. 40 concerning Accounting for Investment in Debt and Equity Securities. The investee was established inaccordance with a Cabinet resolution passed on 1 July 2003, with a registered capital of Baht 100,000 million. It is a 10 yearfund with a policy to guarantee principal and a minimum return. The fund units cannot be redeemed prior to maturity and the Bankpresents the investment as long-term investment in available-for-sale securities.

45

(d) As at 31 December 2005, the Bank has investments which are pledged as collateral, as mentioned in Note 35.1 to thefinancial statements.

9.2 CLASSIFIED BY THE REMAINING PERIOD TO MATURITY OF THE DEBT SECURITIES(Unit: Million Baht)

Consolidated2005 2004

Periods remaining Periods remaining

1 year* 1-5 years Over 5 years Total 1 year* 1-5 years Over 5 years Total

Available-for-sales securitiesGovernment and state enterprises

securities 2,557 925 74 3,556 368 1,078 497 1,943Private sector debt securities 2,550 1,891 - 4,441 683 2,565 1,065 4,313Overseas debt securities 617 - - 617 - - - -

Total 5,724 2,816 74 8,614 1,051 3,643 1,562 6,256Less : Allowance for revaluation (18) (142) (6) (166) (7) (69) (40) (116)

Allowance for impairment (27) - - (27) (27) - - (27)

Total 5,679 2,674 68 8,421 1,017 3,574 1,522 6,113Held-to-maturity securitiesPromissory notes issued by TAMC - - 15,165 15,165 - - 18,321 18,321Government and state enterprises

securities 768 6,423 400 7,591 248 562 2,842 3,652Private sector debt securities - - - - - 20 - 20Overseas debt securities 1,213 10,467 14,274 25,954 - - 1,074 1,074

Total 1,981 16,890 29,839 48,710 248 582 22,237 23,067General investmentsPrivate sector debt securities 2 - - 2 2 - - 2

Total debt securities 7,662 19,564 29,907 57,133 1,267 4,156 23,759 29,182*Include net book value of defaulted

debt securities 221 - - 221 315 - - 315

(Unit: Million Baht)The Bank Only

2005 2004

Periods remaining Periods remaining

1 year* 1-5 years Over 5 years Total 1 year* 1-5 years Over 5 years Total

Available-for-sales securitiesGovernment and state enterprises

securities 2,557 925 74 3,556 368 1,062 497 1,927Private sector debt securities 2,550 1,891 - 4,441 683 2,565 1,065 4,313Overseas debt securities 617 - - 617 - - - -

Total 5,724 2,816 74 8,614 1,051 3,627 1,562 6,240Less : Allowance for revaluation (18) (142) (6) (166) (7) (69) (40) (116)

Allowance for impairment (27) - - (27) (27) - - (27)

Total 5,679 2,674 68 8,421 1,017 3,558 1,522 6,097Held-to-maturity securitiesPromissory notes issued by TAMC - - 15,165 15,165 - - 18,321 18,321Government and state enterprises

securities 723 6,423 400 7,546 103 551 2,842 3,496Overseas debt securities 1,213 10,467 14,274 25,954 - - 1,074 1,074

Total 1,936 16,890 29,839 48,665 103 551 22,237 22,891General investmentsPrivate sector debt securities 2 - - 2 2 - - 2

Total debt securities 7,617 19,564 29,907 57,088 1,122 4,109 23,759 28,990*Include net book value of defaulted debt securities 221 - - 221 315 - - 315

46

9.3 EQUITY SECURITIES CLASSIFIED BY TYPES OF INDUSTRYThe following are equity securities, classified by types of industry, in which the Bank and its subsidiaries hold more than

10% of the paid-up share capital of the investee companies but those companies were not classified as subsidiaries andassociated companies: -

(Unit: Million Baht)Consolidated and the Bank only

2005 2004

Manufacturing 921 834Commercial business 8 13Property development 542 552Public utilities and services 18 -Banking and finance businesses 81 87Total 1,570 1,486Less : Allowance for impairment (340) (348)

Net 1,230 1,138

9.4 INVESTMENTS IN INVESTMENT UNITS IN WHICH THE BANK AND ITS SUBSIDIARIES HOLD MORE THAN10%Investments in investment units in which the Bank and its subsidiaries hold more than 10% of the paid-up fund, which

are not treated as their subsidiaries and associated companies, classified by type of fund, are as follows :(Unit: Million Baht)

Consolidated and the Bank only

31 December 2005 31 December 2004

Cost Fair value Cost Fair value

General investmentsInvestment in property funds 700 703 439 443Total 700 703 439 443Less : Allowance for impairment (3) (3)Book value 697 436

9.5 INVESTMENTS IN COMPANIES HAVING PROBLEMS RELATING TO FINANCIAL POSITION ANDOPERATING RESULTSAs at 31 December 2005 and 2004, the Bank and its subsidiaries have the following investments in companies, which

have problems relating to financial positions and operating results:-(Unit: Million Baht)

Consolidated2005 2004

Allowance for Allowance forNumber of revaluation and Book Number of revaluation and Bookcompanies Cost impairment value companies Cost impairment value

Investments under Covered Asset Pool (CAP)Listed companies under delisting conditions 7 166 - 166 9 143 (3) 140Companies with problems regarding to business

continuity or weak financial status andoperating performance 43 950 (237) 713 67 1,920 (621) 1,299

Defaulted debt securities 11 250 (27) 223 11 348 (27) 321Investments under Non Covered Asset Pool (NON CAP)Listed companies under delisting conditions 8 28 (2) 26 10 109 6 115Companies with problems regarding to business

continuity or weak financial status andoperating performance 53 602 (442) 160 64 662 (499) 163

Defaulted debt securities 26 9 (7) 2 26 9 (7) 2

47

(Unit: Million Baht)The Bank Only

2005 2004

Allowance for Allowance forNumber of revaluation and Book Number of revaluation and Bookcompanies Cost impairment value companies Cost impairment value

Investments under Covered Asset Pool (CAP)Listed companies under delisting conditions 7 166 - 166 9 143 (3) 140Companies with problems regarding to business

continuity or weak financial status andoperating performance 43 950 (237) 713 67 1,920 (621) 1,299

Defaulted debt securities 11 250 (27) 223 11 348 (27) 321Investments under Non Covered Asset Pool (NON CAP)Listed companies under delisting conditions 8 28 (2) 26 9 109 6 115Companies with problems regarding to business

continuity or weak financial status andoperating performance 51 602 (442) 160 64 662 (499) 163

Defaulted debt securities 26 9 (7) 2 26 9 (7) 2

9.6 INVESTMENTS IN SUBSIDIARIES AND ASSOCIATED COMPANIESAs at 31 December 2005 and 2004, the Bank has investments in ordinary shares of subsidiary and associated

companies as summarised below :-Consolidated

Investment value Dividend received

Paid-up share Percentage of For the years endedCompany name Nature of business capital Holding Cost method Equity method 31 December

2005 2004 2005 2004 2005 2004 2005 2004 2005 2004Million Million % % Million Million Million Million Million Million

Baht Baht Baht Baht Baht Baht Baht BahtSubsidiaries - not included in consolidated financial statementsKrung Thai Thanakit In process of 495 495 99 99 - - 562 669 - -

Finance Plc. liquidationNava Factoring Co., Ltd. Services 100 100 90 90 93 93 93 93 - -P.C. Pattanasub Co., Ltd. Commerce - 1 - 100 - 1 - 1 - -Associated companiesMillea Life Insurance Life insurance 700 700 30 30 174 174 97 142 - -

Thailand Plc.Worldclass Rent a Car Co., Ltd. Car rental 100 100 20 20 60 60 60 60 - -Total 327 328 812 965 - -Less: Allowance for impairment (94) (95) (94) (95)Investments in subsidiaries and associated companies 233 233 718 870Less : Ordinary shares of the Bank held by its subsidiarywhich are not included in consolidated financialstatements (cost method) (515) (515)Investments in subsidiary and associated companies - net 203 355

The Bank OnlyInvestment value Dividend received

Paid-up share Percentage of For the years endedCompany name Nature of business capital Holding Cost method Equity method 31 December

2005 2004 2005 2004 2005 2004 2005 2004 2005 2004Million Million % % Million Million Million Million Million Million

Baht Baht Baht Baht Baht Baht Baht Baht

Subsidiaries - included in consolidated financial statementsBT Insurance Co., Ltd Non-life 300 300 100 100 504 504 214 208 - -

insuranceBT Securities Co., Ltd. Securities 1,200 1,200 100 100 1,174 1,174 1,157 1,207 - -BT Consultant Co., Ltd. Consultant 33 33 100 100 33 33 2 13 - -BT Leasing Co., Ltd. Leasing/ 200 200 100 100 200 200 157 4 - -

hire purchaseBT Asset Management Co., Ltd. Fund manager 100 100 100 100 100 100 46 100 - -Sathorn Asset Management Asset 25 - 100 - 25 - 25 - - -

Co., Ltd. management

48

The Bank OnlyInvestment value Dividend received

Paid-up share Percentage of For the years endedCompany name Nature of business capital Holding Cost method Equity method 31 December

2005 2004 2005 2004 2005 2004 2005 2004 2005 2004Million Million % % Million Million Million Million Million Million

Baht Baht Baht Baht Baht Baht Baht Baht

BT Worldlease Co., Ltd. Hire-purchase 240 - 75 - 248 - 239 - - -(including Siam Wall N.E. motorcyclesLeasing Co., Ltd. and Asset LiabilityManagement Co., Ltd.)

Subsidiaries - not included in consolidated financial statementsKrung Thai Thanakit In process of 388 495 99 99 - - 562 669 - -

Finance Plc. liquidationNava Factoring Co., Ltd. Services 100 100 90 90 93 93 93 93 - -P.C. Pattanasub Co., Ltd. Commerce - 1 - 100 - 1 - 1 - -Associated companiesMillea Life Insurance Life insurance 700 700 30 30 174 174 97 142 - -

Thailand Plc.Worldclass Rent a Car Co., Ltd. Car rental 100 100 20 20 60 60 60 60 - -Total 2,611 2,339 2,652 2,497 - -Less: Allowance for impairment (94) (95) (94) (95)Investments in subsidiaries and associated companies 2,517 2,244 2,558 2,402Less : Ordinary shares of the Bank held by its subsidiaries (cost method) (1,260)(1,260)Investments in subsidiary and associated companies - net 1,298 1,142

As at 31 December 2005, the Bank does not record investments in 2 subsidiary companies and 1 associated company(2004 : 3 subsidiary companies and 1 associated company) under the equity method either because the Bank intends to hold theinvestment temporarily and/or the Company is in the process of being liquidated. However, the Bank has already provided forimpairment loss (if any) on such investments.

10. LOANS AND ACCRUED INTEREST RECEIVABLESAs at 31 December 2005 and 2004, loans and accrued interest receivables can be categorised as assets under the

Covered Asset Pool, which can be compensated for under the Gain/Loss Sharing and Yield Maintenance Agreement (“CAP”) andthose not under the Covered Asset Pool (“NON CAP”) as summarised below: -

(Unit: Million Baht)Consolidated

2005 2004

CAP NON CAP TOTAL CAP NON CAP TOTAL

Loans 48,462 91,705 140,167 57,742 75,240 132,982Accrued interest receivables 3,716 759 4,475 4,721 766 5,487

Total loans and accrued interest receivables 52,178 92,464 144,642 62,463 76,006 138,469Less : Allowance for doubtful debts (19,557) (5,232) (24,789) (19,563) (6,487) (26,050)

Revaluation allowance for debt restructuring - (196) (196) - (264) (264)

Net book value 32,621 87,036 119,657 42,900 69,255 112,155(Unit: Million Baht)

The Bank only

2005 2004

CAP NON CAP TOTAL CAP NON CAP TOTAL

Loans 46,563 90,886 137,449 55,764 74,285 130,049Accrued interest receivables 3,648 728 4,376 4,650 764 5,414

Total loans and accrued interest receivables 50,211 91,614 141,825 60,414 75,049 135,463Less : Allowance for doubtful debts (17,724) (4,701) (22,425) (17,724) (5,954) (23,678)

Revaluation allowance for debt restructuring - (181) (181) - (250) (250)

Net book value 32,487 86,732 119,219 42,690 68,845 111,535

49

10.1 CLASSIFIED BY LOAN TYPE(Unit: Million Baht)

Consolidated The Bank only

2005 2004 2005 2004

Bank overdrafts 6,285 6,349 6,330 6,350Loans 97,881 92,090 97,712 91,833Bill* 31,603 31,176 33,071 31,176Hire purchase receivables* 1,498 - - -Finance lease receivables* 268 283 - -Securities business receivables 2,296 2,394 - -Others 336 690 336 690

Total loans 140,167 132,982 137,449 130,049Add : Accrued interest receivables 4,475 5,487 4,376 5,414

Total loans and accrued interest receivables 144,642 138,469 141,825 135,463Less : Allowance for doubtful debts (24,789) (26,050) (22,425) (23,678)

Revaluation allowance for debt restructuring (196) (264) (181) (250)

Loans and accrued interest receivables - net 119,657 112,155 119,219 111,535

*As at 31 December 2005 and 2004, those amount have been presented net from unearned interest income with total of Baht 875 million and Baht18 million, respectively (the Bank only : Baht 81 million and Baht 5 million, respectively).

10.2 CLASSIFIED BY REMAINING PERIOD OF CONTRACT(Unit: Million Baht)

Consolidated The Bank only

2005 2004 2005 2004

Not over 1 year* 76,104 72,573 73,352 69,566Over 1 year* 68,538 65,896 68,473 65,897Total loans and accrued interest receivables 144,642 138,469 141,825 135,463

*Includes loans for which the debtors have been unable to comply with the agreement and of which the Bank has the right to demand payment at call.

10.3 CLASSIFIED BY CURRENCY AND RESIDENCY OF DEBTORS(Unit: Million Baht)

Consolidated

2005 2004

Domestic Overseas Total Domestic Overseas Total

Baht 142,423 - 142,423 136,533 - 136,533US dollar 1,978 155 2,133 1,514 147 1,661Other currencies 86 - 86 275 - 275

Total loans and accrued interest receivables 144,487 155 144,642 138,322 147 138,469(Unit: Million Baht)

The Bank only

2005 2004

Domestic Overseas Total Domestic Overseas Total

Baht 139,606 - 139,606 133,527 - 133,527US dollar 1,978 155 2,133 1,514 147 1,661Other currencies 86 - 86 275 - 275

Total loans and accrued interest receivables 141,670 155 141,825 135,316 147 135,463

10.4 CLASSIFIED BY TYPE OF BUSINESS AND LOAN CLASSIFICATION(Unit: Million Baht)

Consolidated2005

CAP NON CAP

The Subsidiaries’ Special Sub Bad Subsidiaries’

Bank’s loan receivables Normal mention standard Doubtful debts receivables Total

Agricultural and mining 1,423 - 504 44 1 52 91 - 2,115Manufacturing and commerce 22,598 - 43,076 433 409 593 2,714 - 69,823

50

(Unit: Million Baht)Consolidated

2005CAP NON CAP

The Subsidiaries’ Special Sub Bad Subsidiaries’

Bank’s loan receivables Normal mention standard Doubtful debts receivables Total

Real estate and construction 11,078 - 12,598 403 271 762 1,158 - 26,270Public utilities and services 4,856 - 16,014 87 89 301 204 - 21,551Housing loans 3,655 - 2,273 22 9 11 246 - 6,216Hire purchase receivable and

finance lease receivable - - - - - - - 1,785 1,785Other 6,601 1,968 7,152 74 24 26 460 577 16,882

Total loans and accrued interest receivables 50,211 1,968 81,617 1,063 803 1,745 4,873 2,362 144,642

(Unit: Million Baht)Consolidated

2004CAP NON CAP

The Subsidiaries’ Special Sub Bad Subsidiaries’

Bank’s loan receivables Normal mention standard Doubtful debts receivables Total

Agricultural and mining 1,525 - 681 1 1 2 172 - 2,382Manufacturing and commerce 26,838 - 37,951 164 126 598 2,576 - 68,253Real estate and construction 13,750 - 10,975 5 693 123 1,321 - 26,867Public utilities and services 6,087 - 14,870 30 311 120 294 - 21,712Housing loans 4,099 - 750 16 10 21 275 - 5,171Hire purchase receivable and

finance lease receivable - - - - - - - 270 270Other 8,115 2,049 2,252 4 10 13 682 689 13,814

Total loans and accrued interest receivables 60,414 2,049 67,479 220 1,151 877 5,320 959 138,469

(Unit: Million Baht)The Bank only

2005

NON CAP

Special Sub Bad Subsidiaries’

CAP Normal mention standard debts receivables Total

Agricultural and mining 1,423 504 44 1 52 91 2,115Manufacturing and commerce 22,598 43,076 433 409 593 2,714 69,823Real estate and construction 11,078 12,598 403 271 762 1,158 26,270Public utilities and services 4,856 16,018 87 89 301 204 21,555Housing loans 3,655 2,273 22 9 11 246 6,216Others 6,601 8,661 74 24 26 460 15,846

Total loans and accrued interest receivables 50,211 83,130 1,063 803 1,745 4,873 141,825

(Unit: Million Baht)The Bank only

2004

NON CAP

Special Sub Bad Subsidiaries’

CAP Normal mention standard debts receivables Total

Agricultural and mining 1,524 681 1 1 2 172 2,381Manufacturing and commerce 26,838 37,951 164 126 598 2,576 68,253Real estate and construction 13,750 10,975 5 693 123 1,321 26,867Public utilities and services 6,087 14,870 30 311 120 294 21,712Housing loans 4,099 750 16 10 21 275 5,171Others 8,116 2,254 4 10 13 682 11,079

Total loans and accrued interest receivables 60,414 67,481 220 1,151 877 5,320 135,463

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10.5 CLASSIFIED BY LOAN CLASSIFICATIONThe Bank and its subsidiaries classified loans which are not to be compensated for under the Gain/Loss Sharing and

Yield Maintenance Agreement (NON CAP) by loan classification, as summarised below :-10.5.1 The Bank’s loans

The Bank only2005 2004

Loans and Balance Minimum rate of Allowance Loans and Balance Minimum rate of Allowanceaccrued interest after loan loss provisioning provided accrued interest after loan loss provisioning provided

receivables collateral per BOT in the accounts receivables collateral per BOT in the accounts

Million Baht Million Baht % Million Baht Million Baht Million Baht % Million BahtLoans and accrued interest receivables - NON CAPNormal 83,130 37,097 1 357 67,481 31,265 1 296Special-mention 1,063 350 2 7 220 66 2 1Sub-standard 803 273 20 240 1,151 579 20 208Doubtful 1,745 779 50 592 877 341 50 725Bad debts 4,873 2,699 100 3,112 5,320 3,291 100 3,763

Total 91,614 41,198 4,308 75,049 35,542 4,993General provision for further losses 393 961Total provision for NON CAP loans 4,701 5,954

Loans and accrued interestreceivables - CAP(1) 50,211 37,282 17,724 60,414 39,271 17,724

Total 141,825 78,480 22,425 135,463 74,813 23,678(1) No classification is made or further provision made since the loans are to be compensated for under Gain/Loss Sharing and Yield Maintenance Agreement.

As at 31 December 2005, Baht 230 million of the general provision for Non CAP loans (2004 : Baht 505million) represents allowance for additional losses as a result of debt restructuring which the Bank may have to recognise due tothe additional reductions of outstanding principal or accrued interest receivable balances required if the restructured debtors areable to comply with the conditions stipulated in the debt restructuring agreements.

As at 31 December 2005, the Bank did not set aside additional provision for possible loan losses for Non CAPloans since the Bank believes that the Baht 774 million in allowance for doubtful debts recorded for the CAP loans should berecorded as allowance for Non CAP loans, as mentioned in Note 5.3 to the financial statements. If the Bank receives approval fromthe FIDF, the Bank will have adequate additional allowance for such possible loans losses.

Loans and accrued interest receivables under the Gain/Loss Sharing and Yield Maintenance Agreement arestated at the transfer price. The Bank has not classified debt or provided additional allowance for doubtful debt against these loansand receivables subsequent to the transfer date, since it believes that any loss will be compensated for in full.

10.5.2 Securities business receivables(Unit : Million Baht)

Securities business Allowance for Allowance for doubtfulreceivable and doubtful accounts as accounts set up by the

accrued interest required by SEC Bank’s subsidiary2005 2004 2005 2004 2005 2004

Loans and accrued interest receivables - NON CAPNormal 323 393 - - - -Substandard debt 39 37 - - - -Doubtful debt 215 259 215 259 234 271

Total provision for NON CAP loans 577 689 215 259 234 271Loans and accrued interest receivables -CAP(1) 1,968 2,049 1,901 1,985 1,834 1,839

Total 2,545 2,738 2,116 2,244 2,068 2,110(1) No classification is made or further provision made since the loans are to be compensated for under Gain/Loss Sharing and Yield Maintenance Agreement.

10.5.3 Hire-purchase receivables and financial lease receivables of the subsidiariesAs at 31 December 2005, hire-purchase receivables and financial lease receivables of the subsidiaries are

classified based on the over due date as follows :-(Unit : Million Baht)

Debt balance - net Allowance forfrom unearned income doubtful accounts

Current or overdue less than 1 installment 1,399 14Overdue 2 - 3 installments 103 2Overdue 4 - 6 installments 11 2Overdue 7 - 12 installments 6 3Overdue more than 12 installments 252 264Debtorsunder litigation 10 10Total 1,781 295

52

The above data classifying receivables based on the due date per the contract does not include a hire purchasereceivable of Siam Wall N.E. Leasing amounting to Baht 8 million, of which Baht 2 million is more than 4 installments overdue.

10.6 NON-PERFORMING LOANSAs at 31 December 2005 and 2004, the Bank and its subsidiaries had the following non-performing loans, which are

not to be compensated for (NON CAP) under the agreement, according to the criteria set up by the BOT and the Office of theSecurities and Exchange Commission : -

(Unit: Million Baht)Consolidated The Bank only

2005 2004 2005 2004

Non-performing loans - Non CAP (principal only) 7,188 7,172 7,011 6,892

As at 31 December 2005 and 2004, the above non-performing loans under the BOT’s criteria were presented inaccordance with the notification of the BOT dated 16 January 2003, defining non-performing loans to be the debts classified assubstandard, doubtful and doubtful loss and excluding outstanding loans for which debt restructuring agreements have been madeand conditions to upgrade to normal class or special-mention class in accordance with the Bank of Thailand’s criteria have alreadybeen fulfilled.

10.7 TROUBLED DEBT RESTRUCTURINGDuring the years 2005 and 2004, the Bank has entered into troubled debt restructuring agreements with debtors.

The number of debtors and their debt balances (including recorded accrued interest receivables) before restructuring can besummarised below :-

(Unit: Million Baht)Consolidated

2005 2004No. of debtors* Debt balance No. of debtors* Debt balance

Covered Asset Pool (CAP) 228 2,228 370 7,648Non Covered Asset Pool (NON CAP) 110 2,001 186 2,733

Total for the Bank and its subsidiary 338 4,229 556 10,381* When certain debtors have debt balances outstanding under both CAP and NON CAP, the debtor is counted under CAP only.

(Unit: Million Baht)The Bank only

2005 2004No. of debtors* Debt balance No. of debtors* Debt balance

Covered Asset Pool (CAP) 201 2,103 354 7,526Non Covered Asset Pool (NON CAP) 97 1,924 173 2,719

Total for the Bank only 298 4,027 527 10,245

* When certain debtors have debt balances outstanding under both CAP and NON CAP, the debtor is counted under CAP only.

The restructured debtors referred to above can be classified by method of troubled debt restructuring as describedbelow :-

(Unit: Million Baht)Consolidated

2005Debt balances Loss on

Number Before After Fair troubled debtof debtors*restructuring restructuring Type of assets transferred value restructuring

Covered Asset Pool (CAP)Transfer of assets 3 19 - - Land and land with premises 8 10

- Ordinary shares -- Others 1

Modification of terms of payments 224 2,188 1,595 593Combination of methods 1 21 20 - Land and land with premises 1 -

- Ordinary shares- Others

Total 228 2,228 1,615 10 603Non Covered Asset Pool (NON CAP)Transfer of assets 1 271 - - Land and land with premises 265 -

- Ordinary shares 2- Others 4

Modification of terms of payments 107 1,662 1,473 189Combination of methods 2 68 28 - Land and land with premises 30 9

- Ordinary shares 1- Others -

Total 110 2,001 1,501 302 198Total restructured debts during the year 338 4,229 3,116 312 801Loans and accrued interest receivables as at 31 December 2005 101,484 144,642* When certain debtors have debt balances outstanding under both CAP and NON CAP, the debtor is counted under CAP only.

53

(Unit: Million Baht)Consolidated

2004Debt balances Loss on

Number Before After Fair troubled debtof debtors*restructuring restructuring Type of assets transferred value restructuring

Covered Asset Pool (CAP)Transfer of assets 4 64 - - Land and land with premises 56 4

- Ordinary shares -- Others 4

Modification of terms of payments 352 4,724 3,717 1,007Combination of methods 14 2,860 985 - Land and land with premises 93 792

- Ordinary shares 990- Others -

Total 370 7,648 4,702 1,143 1,803Non Covered Asset Pool (NON CAP)Transfer of assets - - - - Land and land with premises - -

- Ordinary shares -- Others -

Modification of terms of payments 186 2,637 2,227 410Combination of methods - * 96 17 - Land and land with premises - 29

- Ordinary shares 50- Others -

Total 186 2,733 2,244 50 439Total restructured debts during the year 556 10,381 6,946 1,193 2,242Loans and accrued interest receivables

as at 31 December 2004 17,219 138,469

*When certain debtors have debt balances outstanding under both CAP and NON CAP, the debtor is counted under CAP only.(Unit: Million Baht)

The Bank only2005

Debt balances Loss onNumber Before After Fair troubled debt

of debtors*restructuring restructuring Type of assets transferred value restructuring

Covered Asset Pool (CAP)Transfer of assets 1 7 - - Land and land with premises 5 1

- Ordinary shares -- Others 1

Modification of terms of payments 199 2,075 1,579 496Combination of methods 1 21 20 - Land and land with premises 1 -

- Ordinary shares -- Others -

Total 201 2,103 1,599 7 497Non Covered Asset Pool (NON CAP)Transfer of assets 1 271 - - Land and land with premises 265 -

- Ordinary shares 2- Others 4

Modification of terms of payments 94 1,585 1,457 128Combination of methods 2 68 28 - Land and land with premises 30 9

- Ordinary shares 1- Others -

Total 97 1,924 1,485 302 137Total restructured debts during the year 298 4,027 3,084 309 634Loans and accrued interest receivables

as at 31 December 2005 69,001 141,825

*When certain debtors have debt balances outstanding under both CAP and NON CAP, the debtor is counted under CAP only.

54

(Unit: Million Baht)The Bank only

2004Debt balances Loss on

Number Before After Fair troubled debtof debtors*restructuring restructuring Type of assets transferred value restructuring

Covered Asset Pool (CAP)

Transfer of assets 2 54 - - Land and land with premises 54 -- Ordinary shares -- Others -

Modification of terms of payments 338 4,612 3,657 955Combination of methods 14 2,860 985 - Land and land with premises 93 792

- Ordinary shares 990- Others -

Total 354 7,526 4,642 1,137 1,747Non Covered Asset Pool (NON CAP)Transfer of assets - - - - Land and land with premises - -

- Ordinary shares -- Others -

Modification of terms of payments 173 2,623 2,215 408Combination of methods - * 96 17 - Land and land with premises - 29

- Ordinary shares 50- Others -

Total 173 2,719 2,232 50 437Total restructured debts during the year 527 10,245 6,874 1,187 2,184Loans and accrued interest receivables

as at 31 December 2004 16,333 135,463

*When certain debtors have debt balances outstanding under both CAP and NON CAP, the debtor is counted under CAP only.

The debts restructured by means of modification of the term of repayment and combination of methods referred toabove can be classified by the term of repayment under the restructuring agreements as follows: -

(Unit: Million Baht)Consolidated

2005 2004

Debt balances Debt balances

Term of repayment according to Number Before After Number Before Afterthe restructuring agreements of debtors* restructuring restructuring of debtors* restructuring restructuring

Covered Asset Pool (CAP)Not more than 5 years’ 206 1,787 1,233 251 4,592 2,6675 - 10 years 15 179 139 86 2,679 1,73110 - 15 years 4 243 243 26 201 197More than 15 years - - - 3 112 107Total 225 2,209 1,615 366 7,584 4,702Non Covered Asset Pool (NON CAP)Not more than 5 years 62 1,463 1,331 94 2,083 1,7545 - 10 years 30 248 151 56 439 31710 - 15 years 16 18 18 32 207 169More than 15 years 1 1 1 4 4 4Total 109 1,730 1,501 186 2,733 2,244

Total restructured debts 334 3,939 3,116 552 10,317 6,946

*When certain debtors have debt balances outstanding under both CAP and NON CAP, the debtor is counted under CAP only.

55

(Unit: Million Baht)The Bank only

2005 2004

Debt balances Debt balances

Term of repayment according to Number Before After Number Before Afterthe restructuring agreements of debtors* restructuring restructuring of debtors* restructuring restructuring

Covered Asset Pool (CAP)Not more than 5 years 181 1,674 1,217 237 4,479 2,6075 - 10 years 15 179 139 86 2,679 1,73110 - 15 years 4 243 243 26 201 197More than 15 years - - - 3 112 107Total 200 2,096 1,599 352 7,471 4,642Non Covered Asset Pool (NON CAP)Not more than 5 years 51 1,460 1,327 81 2,069 1,7425 - 10 years 28 174 139 56 439 31710 - 15 years 16 18 18 32 207 169More than 15 years 1 1 1 4 4 4Total 96 1,653 1,485 173 2,719 2,232

Total restructured debts 296 3,749 3,084 525 10,190 6,874

*When certain debtors have debt balances outstanding under both CAP and NON CAP, the debtor is counted under CAP only.

Supplemental information for the years ended 31 December 2005 and 2004 relating to the restructured debts is asfollow : -

(Unit: Million Baht)Consolidated

2005 2004

CAP NON CAP Total CAP NON CAP Total

Losses on debt restructuring due to debtors being able to complywith debt restructuring conditions (Hair cut loss) 1,952 786 2,738 1,394 558 1,952

Cash settlement by debtorsPrincipal 4,624 1,641 6,265 3,739 1,997 5,736Interest 669 348 1,017 930 606 1,536

(Unit: Million Baht)The Bank only

2005 2004

CAP NON CAP Total CAP NON CAP Total

Losses on debt restructuring due to debtors being able to complywith debt restructuring conditions (Hair cut loss) 1,901 757 2,658 1,360 558 1,918

Cash settlement by debtorsPrincipal 4,597 1,627 6,224 3,680 1,985 5,665

Interest 669 346 1,015 929 605 1,534

As at 31 December 2005 and 2004, the troubled debtors for which the Bank and its subsidiaries completed their debtrestructuring can be summarised as follow : -

(Unit: Million Baht)Consolidated

Number of debtors* Debt balances after restructuring

CAP NON CAP Total CAP NON CAP Total

Balance of restructured debts up to 31 December 2005 607 493 1,100 6,174 7,915 14,089

Balance of restructured debts up to 31 December 2004 861 568 1,429 15,343 9,126 24,469

*When certain debtors have debt balances outstanding under both CAP and NON CAP, the debtor is counted under CAP only.(Unit: Million Baht)

The Bank only

Number of debtors* Debt balances after restructuring

CAP NON CAP Total CAP NON CAP Total

Balance of restructured debts up to 31 December 2005 591 486 1,077 6,168 7,903 14,071

Balance of restructured debts up to 31 December 2004 849 562 1,411 15,306 9,125 24,431

*When certain debtors have debt balances outstanding under both CAP and NON CAP, the debtor is counted under CAP only.

56

In cases where the troubled debt restructuring involves modifications of the terms and the repayment conditions, the fairvalue of the loans after restructuring is determined based on the net present value of expected future cash flows, discounted by themarket interest rate. As at 31 December 2005, the Bank has losses from the revaluation of restructured NON CAP debts (PVLoss) of Baht 181 million (2004 : Baht 250 million), for which the Bank had provided allowance for revaluation as a result ofdebt restructuring.

In addition, as at 31 December 2005 the Bank may have to realise additional losses from debt restructuring throughwaiver of part of the principal or interest receivables if the restructured debtors are able to comply with the conditions as stipulatedin the debt restructuring agreements. These consist of losses from restructured debts in the CAP of approximately Baht 935 million(2004 : Baht 2,566 million), of which to be included in a calculation of gain/loss sharing under the Gain/Loss Sharing and YieldMaintenance Agreement. For the possible further losses debts amounting to approximately Baht 230 million (2004 : Baht 505million) from NON CAP, the Bank had already provided as a general provision for such losses, which is presented as part of theallowance for doubtful debts in the balance sheet.

10.8 DEBTORS WITH WEAK FINANCIAL STATUS AND OPERATING PERFORMANCE PROBLEMSAs at 31 December 2005 and 2004, the Bank and its subsidiaries have debt balances (including accrued interest

receivables) granted to debtors with weak financial status and operating performance problems, which can be summarised below : -(Unit: Million Baht)

Consolidated and the Bank only

Allowance for doubtfuldebts under BOT’s regulations

Number of debtors Debt balances Collateral value as provided in the accounts2005 2004 2005 2004 2005 2004 2005 2004

Non Covered Asset Pool (NON CAP)Closed financial institutions 1 1 1 1 - - - -Listed companies under delisting conditions 8 8 598 845 238 248 188 115

9 9 599 846 238 248 188 115

11. ALLOWANCE FOR DOUBTFUL DEBTS(Unit: Million Baht)

Consolidated2005

CAP NON CAP

The Bank’s Subsidiaries’ Special Sub Doubt- Bad General Subsidiaries’ Grandloans receivables Normal mention standard ful debts provision Total receivables total

Balance as at 31 December 2004 17,724 1,839 296 1 208 725 3,763 961 5,954 533 26,050Add : Allowance for doubtful debts as a result of investment

in subsidiary 13 13Add : Addition - - - - - - - 215 215 21 236

Transferred from otherallowance 100 100 - 100Transferred from revaluationallowance for debt restructuring - - - - - - - 106 106 - 106Transferred from suspenseaccounts for the excess provisionof closed accounts - 31 - - - - - - - - 31

Less : Bad debts written off - (36) (90) - (1) (9)(1,309) (228) (1,637) (29) (1,702)Reversal of bad debts (8) (8)

Transferred to revaluation allowancefor debt restructuring - - - - - - - (37) (37) - (37)

Increase (decrease) due to change in classification or collateral value - - 151 6 33 (124) 658 (724) - - -

Balance as at 31 December 2005 17,724 1,834 357 7 240 592 3,112 393 4,701 530 24,789

(Unit: Million Baht)Consolidated

2004CAP NON CAP

The Bank’s Subsidiaries’ Special Sub Doubt- Bad General Subsidiaries’ Grandloans receivables Normal mention standard ful debts provision Total receivables total

Balance as at 31 December 2003 17,724 1,868 421 3 324 737 4,282 853 6,620 589 26,801Add : Transferred from revaluation

allowance for debt restructuring - - - - - - - 88 88 - 88

57

(Unit: Million Baht)Consolidated

2004CAP NON CAP

The Bank’s Subsidiaries’ Special Sub Doubt- Bad General Subsidiaries’ Grandloans receivables Normal mention standard ful debts provision Total receivables total

Less : Bad debts written off - (29) (57) - (6) (2) (173) (308) (546) (3) (578)Reversal of bad debts - - - - - - - - - (53) (53)Written off due to loansbeing transferred to TAMC - - - - - - - (158) (158) - (158)Transferred to revaluationallowance for debt restructuring - - - - - - - (50) (50) - (50)

Increase (decrease) due to change in classification or collateral value - - (68) (2) (110) (10) (346) 536 - - -

Balance as at 31 December 2004 17,724 1,839 296 1 208 725 3,763 961 5,954 533 26,050

(Unit: Million Baht)The Bank only

2005NON CAP

Special Sub Doubt- Bad General GrandCAP Normal mention standard ful debts provision Total Total

Balance as at 31 December 2004 17,724 296 1 208 725 3,763 961 5,954 23,678Add : Addition - - - - - - 215 215 215

Transferred from other allowance - - - - - - 100 100 100Transferred from revaluation allowancefor debt restructuring - - - - - - 106 106 106

Less : Bad debts written off - (90) - (1) (9) (1,309) (228) (1,637) (1,637)Transferred to revaluation allowance for debt restructuring - - - - - - (37) (37) (37)

Increase (decrease) due to change in classification or collateral value - 151 6 33 (124) 658 (724) - -Balance as at 31 December 2005 17,724 357 7 240 592 3,112 393 4,701 22,425

(Unit: Million Baht)The Bank only

2004NON CAP

Special Sub Doubt- Bad General GrandCAP Normal mention standard ful debts provision Total Total

Balance as at 31 December 2003 17,724 421 3 324 737 4,282 853 6,620 24,344Add : Transferred from revaluation

allowance for debt restructuring - - - - - - 88 88 88Less : Bad debts written off - (57) - (6) (2) (173) (308) (546) (546)

Written off due to loans being transferred to TAMC - - - - - - (158) (158) (158)Transferred to revaluationallowance for debt restructuring - - - - - - (50) (50) (50)

Increase (decrease) due to change in classification or collateral value - (68) (2) (110) (10) (346) 536 - -Balance as at 31 December 2004 17,724 296 1 208 725 3,763 961 5,954 23,678

12. REVALUATION ALLOWANCE FOR DEBT RESTRUCTURING(Unit: Million Baht)

Consolidated The Bank only

2005 2004 2005 2004

Balance - beginning of the periods 265 314 250 300Add: Revaluation allowance transferred from allowance for doubtful debts 37 50 37 50Less: Amounts written off during the periods - (12) - (12)

Revaluation allowance transferred to allowance for doubtful debts (106) (88) (106) (88)Balance - end of the periods 196 264 181 250

The write-off transactions and/or the adjustments of revaluation allowance for debt restructuring are transferred from/toallowance for doubtful debts.

58

13. PROPERTIES FORECLOSEDProperties foreclosed represent properties foreclosed from debtors as a result of debt restructuring, or properties obtained

as a result of a successful bid for the mortgaged assets of debtors at auction, or assets transferred as a result of merger andawaiting disposal.

Properties foreclosed which will not be compensated for under the Gain/Loss Sharing and Yield Maintenance Agreementare presented in the manners discussed in the accounting policies. Properties foreclosed included in the Covered Asset Pool undersuch agreement are presented at book value as they were transferred as a result of the merger. The Bank and its subsidiaries donot provide for additional impairment loss of the CAP portion as the management expects to recoup the whole amount at the endof the agreement.

As at 31 December 2005 and 2004, properties foreclosed can be classified as properties foreclosed in the CoveredAsset Pool (“CAP”) and those not in the Covered Asset Pool (“NON CAP”) as summarised below :-

(Unit: Million Baht)Consolidated

2005 2004

CAP NON CAP TOTAL CAP NON CAP TOTAL

Cost 3,285 3,488 6,773 5,540 4,524 10,064Less : Allowance for impairment - (710) (710) - (845) (845)Book value 3,285 2,778 6,063 5,540 3,679 9,219

(Unit: Million Baht)The Bank only

2005 2004

CAP NON CAP TOTAL CAP NON CAP TOTAL

Cost 3,279 3,197 6,476 5,538 4,550 10,088Less : Allowance for impairment - (697) (697) - (845) (845)Book value 3,279 2,500 5,779 5,538 3,705 9,243

Under the debt restructuring agreements, in cases where the debtors restructure their debts by means of a debt/assetswap, the Bank grants buyback options or first refusal rights to certain debtors for a certain period, at prices as agreed in the debtrestructuring agreements. The buyback prices are normally agreed to be the transfer prices of the properties on the restructuringdates or plus interest.

(Unit: Million Baht)Consolidated

2005Asset acquired Obligations with regard

Beginning from investment Ending to buyback options orbalances in subsidiary Additions Disposals balances first refusal rights

Properties foreclosed under Covered Asset Pool (CAP)Immovable 5,540 - 222 (2,477) 3,285 470Properties foreclosed under Non Covered Asset Pool (NON CAP)Immovable 4,524 - 595 (1,680) 3,439 883Movable - 13 93 (57) 49 -Less: Allowance for impairment (845) (4) (23) 162 (710) (122)Net 3,679 9 665 (1,575) 2,778 761Properties foreclosed - net 9,219 9 887 (4,052) 6,063 1,231

(Unit: Million Baht)Consolidated

2004Obligations with regard

Beginning Ending to buyback options orbalances Additions Disposals balances first refusal rights

Properties foreclosed under Covered Asset Pool (CAP)Immovable 5,632 370 (462) 5,540 1,396Properties foreclosed under Non Covered Asset Pool (NON CAP)Immovable 4,927 79 (482) 4,524 1,669Less: Allowance for impairment (861) - 16 (845) (89)Net 4,066 79 (466) 3,679 1,580Properties foreclosed - net 9,698 449 (928) 9,219 2,976

59

(Unit: Million Baht)The Bank only

2005Obligations with regard

Beginning Ending to buyback options orbalances Additions Disposals balances first refusal rights

Properties foreclosed under Covered Asset Pool (CAP)Immovable 5,538 218 (2,477) 3,279 470Properties foreclosed under Non Covered Asset Pool (NON CAP)Immovable 4,550 327 (1,680) 3,197 883Less: Allowance for impairment (845) - 148 (697) (122)Net 3,705 327 (1,532) 2,500 761Properties foreclosed - net 9,243 545 (4,009) 5,779 1,231

(Unit: Million Baht)The Bank only

2004Obligations with regard

Beginning Ending to buyback options orbalances Additions Disposals balances first refusal rights

Properties foreclosed under Covered Asset Pool (CAP)Immovable 5,632 368 (462) 5,538 1,396Properties foreclosed under Non Covered Asset Pool (NON CAP)Immovable 4,953 79 (482) 4,550 1,669Less: Allowance for impairment (861) - 16 (845) (89)Net 4,092 79 (466) 3,705 1,580Properties foreclosed - net 9,724 447 (928) 9,243 2,976

14. PREMISES AND EQUIPMENT(Unit: Million Baht)

Consolidated

Land Buildings Equipment Assets in progress Total

Cost :31 December 2004 799 2,627 1,517 15 4,958Asset acquired from investment in subsidiary - - 26 - 26Additions - 23 312 46 381Disposals - (3) (25) - (28)Transfer in 108 362 2 - 472Transfer out - - - (47) (47)31 December 2005 907 3,009 1,832 14 5,762Accumulated depreciation :31 December 2004 - (616) (1,014) - (1,630)Accumulated depreciation of asset acquired from investment in subsidiary - - (23) - (23)Disposals - - 23 - 23Transfer in - (8) - - (8)Depreciation charged for the period - (97) (173) - (270)31 December 2005 - (721) (1,187) - (1,908)Allowance for damage, loss and impairment :31 December 2004 (142) (411) (41) - (594)Disposals - - 1 - 1Transfer in - (206) - - (206)31 December 2005 (142) (617) (40) - (799)Net book value :31 December 2004 657 1,600 462 15 2,73431 December 2005 765 1,671 605 14 3,055

60

(Unit: Million Baht)Consolidated

Land Buildings Equipment Assets in progress Total

Net book value of unutilised fixed assets awaiting disposal :-31 December 2004 - 2 - - 2

31 December 2005 - 2 - - 2Depreciation included in the statements of earnings for the years ended 31 December :-2004 2462005 270

(Unit: Million Baht)The Bank only

Land Buildings Equipment Assets in progress Total

Cost :31 December 2004 799 2,561 1,352 15 4,727Additions - 19 275 46 340Disposals - (3) (20) - (23)Transfer in 108 362 2 - 472Transfer out - - - (47) (47)31 December 2005 907 2,939 1,609 14 5,469Accumulated depreciation :31 December 2004 - (589) (890) - (1,479)Disposals - - 18 - 18Transfer in - (8) - - (8)Depreciation charged for the year - (89) (153) - (242)31 December 2005 - (686) (1,025) - (1,711)Allowance for damage, loss and impairment :31 December 2004 (142) (411) (41) - (594)Disposals - - 1 - 1Transfer in - (206) - - (206)31 December 2005 (142) (617) (40) - (799)Net book value :31 December 2004 657 1,561 421 15 2,65431 December 2005 765 1,636 544 14 2,959Net book value of unutilised fixed assets awaiting disposal :-31 December 2004 - 2 - - 231 December 2005 - 2 - - 2Depreciation included in the statements of earnings for the years ended 31 December :-2004 2222005 242

15. RECEIVABLES FROM THE FINANCIAL INSTITUTIONS DEVELOPMENT FUND UNDERTHE GAIN/LOSS SHARING AND YIELD MAINTENANCE AGREEMENTUnder the Gain/Loss Sharing and Yield Maintenance Agreement as discussed in the Note 5 to the financial statements,

the FIDF is obliged to compensate losses incurred from the non-performing assets under such agreement based on the conditionsstipulated in the agreement. Therefore, the Bank and its subsidiaries then recorded losses actually incurred from suchnon-performing assets and losses from non-performing loans transferred to TAMC and realised as assets under the caption of“Receivables from the Financial Institutions Development Fund under Gain/Loss Sharing and Yield Maintenance Agreement”awaiting compensation, which are to be determined at the end of the contract period. As at 31 December 2005 and 2004, theoutstanding balances of such account are as follows :-

(Unit: Million Baht)Consolidated The Bank only

2005 2004 2005 2004

Losses from non-performing loans transferred to TAMC 59,959 60,146 59,959 60,146Losses from debt restructuring 8,668 4,638 8,668 4,638Gains from debt settlement - (32) - -Losses from sale of investments 392 113 393 113

61

(Unit: Million Baht)Consolidated The Bank only

2005 2004 2005 2004

Gains (losses) from disposal of properties foreclosed 187 (309) 187 (309)Advance payments for court cases which are reimbursable under the agreement 654 667 618 637Total 69,860 65,223 69,825 65,225Less : Notes payable to the FIDF (Note 22) (22,000) (22,000) (22,000) (22,000)

47,860 43,223 47,825 43,225

16. INTANGIBLE ASSETS(Unit: Million Baht)

ConsolidatedAmortising Balance as at Transfer Amortisa- Balance as at

period 31 December 2004 Increase in/out tion 31 December 2005

Expenditures in connection with developmentand improvement of computer systems - under development - 352 89 (3) (1) 437Computer software 5 - 10 years 234 43 2 (58) 221Leasehold right the lease period 77 29 43 (4) 145Others - 13 6 - - 19

676 167 42 (63) 822(Unit: Million Baht)

The Bank onlyAmortising Balance as at Transfer Amortisa- Balance as at

period 31 December 2004 Increase in/out tion 31 December 2005

Expenditures in connection with developmentand improvement of computer systems - under development - 352 84 (3) - 433Computer software 5 - 10 years 221 38 3 (54) 208Leasehold right the lease period 77 26 43 (4) 142Others - 13 6 - - 19

663 154 43 (58) 802

17. OTHER ASSETS(Unit: Million Baht)

Consolidated The Bank only

2005 2004 2005 2004

Transfer prices of loans transferred to TAMC for which TAMC note is yet to be received 106 27 106 27Accrued interest receivables 550 339 548 338Accounts receivable from sales of investment 584 44 584 44Other accounts receivable 48 189 44 184Advances 260 291 260 290Receivables under operating lease contracts 19 28 - -Unrealise gain on derivative revaluation - 278 - 278Credit support assets on derivative 377 - 377 -Others 1,206 619 909 880Total 3,150 1,815 2,828 2,041Less: Allowance for doubtful accounts/impairment (1,037) (774) (1,037) (1,036)

Other assets - net 2,113 1,041 1,791 1,005

18. DEPOSITS18.1 CLASSIFIED BY TYPE OF DEPOSITS

(Unit: Million Baht)Consolidated The Bank only

2005 2004 2005 2004

At call 1,770 1,500 1,771 1,501Savings 43,410 49,060 43,523 49,085

62

(Unit: Million Baht)Consolidated The Bank only

2005 2004 2005 2004

Fixed- Less than 6 months 78,914 51,171 78,914 51,179- 6 months and up to 1 year 18,602 25,379 18,614 25,388- Over 1 year 51,496 57,089 51,496 57,089Promissory notes 255 317 255 317Total deposits 194,447 184,516 194,573 184,559

18.2 CLASSIFIED BY THE REMAINING PERIOD OF CONTRACTS(Unit: Million Baht)

Consolidated The Bank only

2005 2004 2005 2004

Not over 1 year* 185,933 167,448 186,059 167,491Over 1 year 8,514 17,068 8,514 17,068Total 194,447 184,516 194,573 184,559

* Included expired contracts

18.3 CLASSIFIED BY CURRENCY AND RESIDENCY OF DEPOSITORS

(Unit: Million Baht)Consolidated

2005 2004Domestic Foreign Total Domestic Foreign Total

Baht 181,997 855 182,852 184,016 286 184,302US dollar 11,568 - 11,568 193 2 195Other currencies 27 - 27 19 - 19Total 193,592 855 194,447 184,228 288 184,516

(Unit: Million Baht)The Bank only

2005 2004Domestic Foreign Total Domestic Foreign Total

Baht 182,123 855 182,978 184,059 286 184,345US dollar 11,568 - 11,568 193 2 195Other currencies 27 - 27 19 - 19Total 193,718 855 194,573 184,271 288 184,559

19. INTERBANK AND MONEY MARKET ITEMS (LIABILITIES)(Unit: Million Baht)

Consolidated2005 2004

At call Term Total At call Term Total

Domestic :-Bank of Thailand and the FIDF - 1,478 1,478 - 444 444Commercial banks 7,016 7,733 14,749 9 6,899 6,908Other banks 4 4,500 4,504 45 - 45Finance, finance and securities,

securities, credit foncier companies 1,114 5,857 6,971 2,695 8,794 11,489Other financial institutions 4,901 7,141 12,042 4,851 7,222 12,073

Total domestic items 13,035 26,709 39,744 7,600 23,359 30,959Foreign :-US dollar 139 1,643 1,782 507 391 898Other currencies 180 9,057 9,237 267 301 568

Total foreign items 319 10,700 11,019 774 692 1,466

Total domestic and foreign items 13,354 37,409 50,763 8,374 24,051 32,425

63

(Unit: Million Baht)The Bank only

2005 2004

At call Term Total At call Term Total

Domestic :-Bank of Thailand and the FIDF - 1,478 1,478 - 444 444Commercial banks 7,015 7,732 14,747 9 6,899 6,908Other banks 4 4,500 4,504 45 - 45Finance, finance and securities,

securities, credit foncier companies 1,172 5,863 7,035 2,781 8,809 11,590Other financial institutions 4,901 7,141 12,042 4,851 7,221 12,072

Total domestic items 13,092 26,714 39,806 7,686 23,373 31,059Foreign :-US dollar 139 1,643 1,782 507 391 898Other currencies 180 9,057 9,237 267 301 568

Total foreign items 319 10,700 11,019 774 692 1,466

Total domestic and foreign items 13,411 37,414 50,825 8,460 24,065 32,525

20. SECURITIES SOLD UNDER REPURCHASE AGREEMENTS(Unit: Million Baht)

Consolidated The Bank only

2005 2004 2005 2004

Government bonds and Bank of Thailand bonds 6,941 - 6,941 -Bonds issued by the Financial Institutions Development Fund 59 - 59 -

Total securities sold under repurchase agreements 7,000 - 7,000 -

21. BORROWINGS(Unit: Million Baht)

Consolidated and the Bank only2005 2004

Domestic Foreign Total Domestic Foreign Total

Subordinated debentures maturing in 2003 544 - 544 544 - 544Non-interest bearing subordinated debentures

of Baht 2,760 million, maturing in 2009 2,760 - 2,760 2,760 - 2,760Promissory note maturing in 2007,

coupon rate of 3.4 % per annum 110 - 110 110 - 110Total 3,414 - 3,414 3,414 - 3,414Less : Current portion of long-term borrowings (544) - (544) (544) - (544)Long-term borrowings - net 2,870 - 2,870 2,870 - 2,870

22. NOTES PAYABLE TO THE FINANCIAL INSTITUTIONS DEVELOPMENT FUNDNotes payable to the Financial Institutions Development Fund (“FIDF”) represent notes payable in connection with the

redemption of Baht 37,068 million preferred shares by the FIDF, whereby the Bank recorded the FIDF as a creditor and issueda promissory note bearing interest at the average deposit rate actually incurred by the Bank, payable on a semi-annual basis inJune and December, and maturing on 1 January 2006. The interest rates are subject to review by the Bank of Thailand. Duringthe year 2003, the Bank has already redeemed part of the notes totaling Baht 15,068 million. The remaining balance is Baht22,000 million.

For the compensation of CAP assets under the Gain/Loss Sharing and Yield Maintenance Agreement already transferredto TAMC, the Bank believes that the FIDF will pay the incurred compensated loss by offsetting with the amount of notes payableto FIDF. The remainder will be included in CAP assets for yield maintenance calculation. Such guideline is under the Authority ofGovernment’s consideration, therefore in order to be in line with such guideline, as at 31 December 2005 and 2004, the Bankpresented receivables from FIDF net of the amount of notes payable to FIDF of Baht 22,000 million and presented the interestexpense on notes payable to FIDF net of relevant yield maintenance income. If the Bank had not presented these net figures,assets (receivables from the Financial Insti tutions Development Fund under gain/loss sharing and yield maintenance agreement)and liabilities (Notes payable to the Financial Institutions Development Fund) would increase by equal amounts of Baht 22,000million and interest income and interest expense for the years ended 31 December 2005 and 2004 would increase by equalamounts of Baht 436 million and Baht 367 million, respectively.

64

23. OTHER LIABILITIES(Unit: Million Baht)

Consolidated The Bank only2005 2004 2005 2004

Accounts payable for purchase of investments 775 - 775 -Credit support liabilities on derivative - 695 - 695Unrealise loss on derivative revaluation 742 - 742 -Other liabilities awaiting accounts transfer 615 496 614 496Customers’ accounts 369 264 - -Accrued taxes payable 90 89 70 82Accrued provident fund and pension fund reserve 358 319 358 319Deposits received in advance 339 396 347 392Accrued expenses 267 179 253 176Others 446 377 70 153Total 4,001 2,815 3,229 2,313

24. SHARE CAPITALThe excess of the registered share capital and the issued and paid up share capital amounted to Baht 37,068 million

(3,706.8 million preference shares at par value of Baht 10 each) was reserved for the exercise of the warrants to purchase theBank’s such preference shares. The preference shares are non-cumulative, convertible to ordinary shares, and entitled to beaffected from capital reduction after the ordinary shares.

25. TREASURY STOCK25.1 ORDINARY SHARES BOUGHT BACK BY THE BANK

On 13 November 2002, a meeting of the Bank’s Board of Directors passed a resolution to have the Bank buy backnot more than 10 percent of its registered and paid up share capital, or an amount of not more than Baht 1,538.25 million,through the main board of the Stock Exchange of Thailand. The buyback period was to run from 27 November 2002 to 26 May2003 and the Bank intended to hold this treasury stock for 6 months from the buyback date and to then complete its sale within3 years of the last buyback date. The treasury stock has no voting rights and no right to receive dividend. If the Bank is unable tosell this treasury stock to a third party by the maturity date of the treasury stock programme, which is 26 May 2006, a reductionof the Bank’s capital to offset the outstanding treasury stock must be made.

As at 31 December 2005 and 2004, the Bank has 93,335,900 shares of treasury stock costing a total ofapproximately Baht 792 million. This amount was presented as a deduction from shareholders’ equity, and is presented under thecost method. As at 31 December 2005, the market price of the treasury stock, which is based on the closing price quoted on theStock Exchange of Thailand on the last business day of year, was approximately Baht 621 million.

The letter of the Office of the Securities and Exchange Commission Gor Lor Tow. Chor Sor. (Wor) 2/2548 dated 14February 2005, regarding treasury stock, stated that a public company can buy back its own stock in an amount not exceedingthe amount of its retained earnings, that companies must appropriate retained earnings in an equal amount as a reserve for thetreasury stock, and that such reserve must be retained for as long as the treasury stock remains outstanding. As at 31 December2005, the Bank has not yet set aside a reserve for treasury stock, and will make the required appropriation when it has sufficientretained earnings in the future.

25.2 THE BANK’S ORDINARY SHARES HELD BY ITS SUBSIDIARIESAs at 31 December 2005 and 2004, BT Securities Company Limited and Krung Thai Thanakit Finance Public

Company Limited, subsidiary companies of the Bank, respectively held 73,524,737and 50,772,000 of the Bank’s ordinaryshares, with costs of approximately Baht 745 million and Baht 515 million, respectively. These investments were presented underthe cost method, as a deduction item in shareholders’ equity. As at 31 December 2005, the market price of such treasury stockholdings, which is based on the stock Exchange of Thailand on the last business day of year was approximately Baht 489 millionand 338 million, respectively.

During June 2004, BT Securities Company Limited, a subsidiary company of the Bank, sold 74,672,500 of theBank’s ordinary shares, which had been recorded as treasury stock held by the subsidiaries, at a price of about Baht 8.7765 pershare (a total of approximately Baht 655 million), to Millea Asia Pte. Ltd. The cost of such ordinary shares was approximately Baht762 million and the loss on the sale of Baht 106 million was charged directly against the Bank’s deficits.

26. WARRANT TO PURCHASE CONVERTIBLE PREFERENCE SHARESOn 9 May 2001, the Bank issued 3,706.8 million non-transferable, 10-year warrants, maturing on 8 May 2011, to the

Financial Institutions Development Fund (“the FIDF”). One warrant is convertible to one preference share of the Bank at anexercise price equal to the par value of Baht 10 per share.

On 28 August 2002, the Bank’s Board of Directors meeting passed a resolution to cancel the warrants by means ofbuying them back from the FIDF. Subsequently, on 23 September 2002, the Bank entered into a warrant buyback optionagreement with the FIDF whereby the Bank is entitled to gradually buy 3,706.8 million of the warrants back at a price of Baht0.27907 per warrant plus interest (determined at the average funding cost of the Bank from the agreement date to the buybackdate), starting from the agreement date to 8 May 2010, and the FIDF agrees not to exercise its conversion rights for the durationof the reacquisition period. If any warrants remain at the end of the reacquisition period, the FIDF may exercise its conversion rightin accordance with the original conditions of the warrant.

The Bank already paid a total of Baht 300 million to the FIDF for the above reacquisition rights. Such amount was chargeddirectly against the Bank’s deficits.

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27. REVALUATION DEFICIT ON INVESTMENTS(Unit: Million Baht)

Consolidated and the Bank only

2005 2004

Revaluation surplus on investments :-Debt securities 1 1Equity securities 18 86

Total 19 87Revaluation deficit on investments :-

Debt securities (167) (117)Equity securities (284) (619)

Total (451) (736)

Revaluation deficit on investments (432) (649)

28. STATUTORY RESERVEUnder the Public Company Limited Act B.E. 2535, the Bank is required to set aside to a statutory reserve at least 5

percent of its net profit for the year, after deducting accumulated deficit brought forward (if any), until the reserve reaches 10percent of its registered share capital. Each allocation to the reserve will be recorded in the accounts when it is already approved.

29. CAPITAL FUNDSAs at 31 December 2005 and 2004, the capital funds maintained by the Bank in accordance with Section 4 of the

Banking Business Undertaking Act B.E. 2505, as reported to the Bank of Thailand, were as follows: -(Unit: Million Baht)

2005 2004

Tier IIssued and paid up share capital 14,935 14,935Share discount (1,124) (1,124)Retained earnings

Appropriated - legal reserve 6 6Unappropriated (deficit) (3,141) (3,810)

Treasury stock held by the Bank (792) (792)Total 9,884 9,215Tier IIReserve for assets classified as normal class 364 345Total 364 345

Total Tier I and Tier II capital funds 10,248 9,560Less: Revaluation deficit on capital securities available-for-sales (243) (224)Total capital funds 10,005 9,336

30. GAINS ON INVESTMENTSGains on investments as presented in the statements of earnings for the years ended 31 December 2005 and 2004

consisted of the following: -(Unit: Million Baht)

Consolidated The Bank only

2005 2004 2005 2004

Unrealised gains (losses) on revaluation of investments 1 (2) 1 -Allowance for impairment of investments 74 22 74 22Gains (losses) on reclassification of investment types (48) 2 (48) (2)Realised gains (losses) on securities trading

Trading securities 68 (23) 59 (7)Available-for-sale securities 100 71 94 69Held-to-maturity debt securities 57 3 57 3General investments 17 205 17 205

Gains on investments 269 278 254 290

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31. DIRECTORS’ REMUNERATIONDirectors’ remuneration represents the benefits paid to the Bank’s and its subsidiaries’ directors in accordance with Section

90 of the Public Company Limited Act, exclusive of salaries and related benefits payable to directors who hold executive positions.

32. CORPORATE INCOME TAXNo corporate income tax was payable on the Bank’s net earnings for the years ended 31 December 2005 and 2004,

after adding back certain expenses and provisions non-deductible for tax computation purposes and deducting tax exemptedincome, since the tax losses brought forward by the Bank exceeded net earnings for the periods.

The corporate income tax presented in the consolidated financial statements is the corporate income tax of the Bank’ssubsidiaries.

33. PENSION FUNDThe Bank has a policy to pay pension benefits to employees with more than 10 years of service and who resign in

accordance with the rules and conditions stipulated by the Bank. Pension funds are reserved and charged to expenses in thestatement of earnings based on number of years of service of each employee. In the event that any employee resigns and is notentitled to receive pension benefits, the Bank will reverse the pension fund contributions already reserved for such employee andcharge the amount against the statements of earnings for the year in which he/she resigns. Such pension benefits are onlyprovided to employees who are former employees of the Union Bank of Bangkok Public Company Limited. As at 31 December2005, there were 846 employees to whom the Bank had such obligations, and the accrued benefits to these employeesamounted to Baht 358 million.

34. PROVIDENT FUNDThe Bank, its subsidiaries and their employees have jointly established a provident fund schemes under the Provident Fund

Act B.E. 2530. The employees contribute to the fund at rate of 3 - 5 percent of their basic salaries and the Bank and itssubsidiaries contribute at rate of 5 percent depending on years of services. The fund will be paid to the employees upontermination in accordance with the rules of the fund. For the years ended 31 December 2005 and 2004, respective amounts ofBaht 53 million and Baht 46 million were contributed to the fund by the Bank and its subsidiaries (The Bank only : Baht 45 millionand Baht 41 million, respectively).

35. ENCUMBRANCE OF ASSETS35.1 ASSETS USED AS COLLATERAL

The Bank and its subsidiaries placed assets such as cash at banks, government and state enterprises bonds ascollateral against the following : -

(Unit: Million Baht)Consolidated The Bank only

2005 2004 2005 2004

Securities Sold Under Repurchase Agreements 7,310 - 7,310 -Utilities usage 7 8 7 8Court cases 1 3 - -Guarantees on loans 45 65 - -Others 14 14 - -Total 7,377 90 7,317 8

35.2 ASSETS SUBJECT TO OBLIGATIONThe Bank has long-term investments in certain equity securities obtained as a result of debt restructuring, under

the debt restructuring agreements, it is obligated to dispose of after agreed periods, which range from 1 year to 20 yearscommencing from the date of the debt restructuring agreements. As at 31 December 2005 and 2004, the investments subjectto such obligation are as follows: -

(Unit: Million Baht)Consolidated and the Bank only

2005 2004

Number of Number ofYear of maturity company Cost company Cost

No maturity 2 32 1 132004 - - 2 1082005 - - 1 132006 1 22 2 5222007 onward 8 1,390 11 916Total 11 1,444 17 1,572

Moreover, the Bank has properties foreclosed subject to obligation under the debt restructuring agreements which grantbuyback options or first refusal rights to debtors as mentioned in Note 13.

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36. COMMITMENTS AND CONTINGENT LIABILITIES36.1 COMMITMENTS

As at 31 December 2005 and 2004, significant commitments of the Bank consist of: -(Unit: Million Baht)

Consolidated and the Bank only2005 2004Foreign Foreign

Baht currency Total Baht currency Total

Avals to bills 819 - 819 148 - 148Guarantees on loans 455 6 461 455 13 468Liability under unmatured import bills - 513 513 67 504 571Letters of credits 98 2,078 2,176 131 3,050 3,181Other commitments :-

Other guarantees 6,945 456 7,401 5,278 785 6,063Forward and spot contracts

- Bought - 51,302 51,302 - 12,584 12,584- Sold - 48,190 48,190 - 16,718 16,718

Cross currency and interest rate- Bought 21,062 15,276 36,338 11,282 8,766 20,048

- Sold 12,554 24,113 36,667 9,286 10,637 19,923 Currency option

- Wrote call option - 1,525 1,525 - 671 671 - Wrote put option - 1,224 1,224 - 191 191 - Bought call option - 586 586 - 680 680 - Bought put option - - - - 20 20 Interest rate futures

- Bought - 4,518 4,518 - - -- Sold - 11,500 11,500 - 5,704 5,704

Interest rate cap- Bought 960 1,232 2,192 - - -- Sold 960 2,053 3,013 - - -

Interest rate swap contracts- Fixed rate payer 5,012 27,560 32,572 2,808 4,389 7,197- Floating rate payer 8,537 25,623 34,160 8,880 3,203 12,083- Fixed rate payee 6,867 25,623 32,490 6,110 3,203 9,313- Floating rate payee 6,682 27,560 34,242 5,578 4,389 9,967

Undrawn bank overdrafts 7,869 - 7,869 6,598 - 6,598Total 78,820 270,938 349,758 56,621 75,507 132,128

36.2 CONTINGENT LIABILITIES(a) As at 31 December 2005 and 2004, the Bank and its subsidiaries had the following contingent liabilities in

connection with court cases in which the Bank or its subsidiaries have been sued as defendants in the Civil Court. The lawsuitswere mainly lodged to claim compensation and the management believes that they will have no significant impact on the Bank andits subsidiaries once they are finalised :-

(Unit: Million Baht)Consolidated and the Bank only2005 2004

Sum claimed in cases where the Bank and its subsidiaries are direct defendants 1,184 818Sum claimed in cases where the Bank and its subsidiaries are co-defendants with others

- Sum of claims that can be specifically attributed to the Bank and its subsidiaries 10 316- Sum of claims that cannot be specifically attributed to the Bank and its subsidiaries and for which the total sum claimed is therefore presented. 130 172

Total 1,324 1,306

As at 31 December 2005, included in the above-mentioned amounts, the court judged in favor of theplaintiffs for the sums claimed totaling Baht 82 million and 78 million in cases where the Bank is the direct defendant and theco-defendant with others, respectively. However, the Bank is in the process of appealing to the court and believes that no loss willbe incurred.

During the year 2004, the bank has been sued for alleged wrongful termination of guarantee on loanagreements for the amount of Baht 450 million (this amount is included in sum claimed in cases where the Bank is directdefendants as mentioned in the above). The Bank’s management believes that the final outcome of the case will be favorable tothe Bank.

(b) The Bank has commitments in respect of the gain/loss sharing under the Gain/Loss Sharing and YieldMaintenance Agreement made with the FIDF as discussed under Note 5 to the financial statements and the Non-performing LoanTransfer Agreement made with TAMC as discussed under Note 6 to the financial statements.

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36.3 COMMITMENTS UNDER LONG-TERM LEASESAs at 31 December 2005 and 2004, the Bank and its subsidiaries had entered into a number of agreements to lease

land, buildings and vehicles for periods of longer than 1 year, under which future rental fees can be summarised as follows : -(Unit: Million Baht)

Lease periods Consolidated The Bank only

2005 2004 2005 2004

1 - 3 years 311 300 269 2554 - 5 years 17 26 17 256 - 10 years 21 12 21 1211 - 30 years 22 21 22 21Total 371 359 329 313

36.4 OTHER COMMITMENTSAs at 31 December 2005, the Bank has other commitments as follows :-1. The Bank entered into various agreements relating to computer system development consultancy services and

computer system and software development. As at 31 December 2005, the Bank is obligated to pay a further Baht 7 million andUSD 10 million, respectively under such agreements.

2. The Bank has capital commitments of approximately Baht 51 million in respect of the purchase and installationof equipment.

3. The Bank has commitments in relation to guard, cleaning and other services agreements of approximately Baht57 million.

37. RELATED PARTY TRANSACTIONSDuring the year, the Bank had significant business transactions with its subsidiary, associated and, related companies

(related by way of common shareholders and/or common directors) and related persons (directors or executives from level of vicepresident upwards). Such transactions, which have been concluded on the terms and basis as determined by the Bank and thoseparties, are summarised below :-

(Unit: Million Baht) Lease periods Consolidated The Bank only

2005 2004 2005 2004

Subsidiary companiesRevenues :-

Interest income - - 34 58Other income - - 25 19

Expenses :-Interest expenses - - 1 1Other expenses - - 19 15

Associated companiesRevenue :-

Interest income 1 - 1 -Related companies

Revenues :-Dividend income 1 1 1 1Interest income 111 149 111 149Fees income 1 2 1 2

Expense :-Interest expenses 30 5 30 5

In addition, the Bank and a subsidiary conducted securities trading through another subsidiary engaged in the securitiesbusiness. The volumes of such trades for the years ended 31 December 2005 and 2004 were Baht 1,035 million and Baht836 million, repectively, while related commission fees for the same periods amounted to Baht 3 million and Baht 2 million,respectively.

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The outstanding balances of significant related party transactions as at 31 December 2005 and 2004 are as follows: -

(Unit: Million Baht)Consolidated

2005 2004Average Averageloans Out- loans Out- Pricing

Outstanding standing Obliga- Outstanding standing Obliga- policyloans Loans tions Deposits loans Loans tions Deposits for loans

Subsidiary companyNava Factoring Co., Ltd. 6 4 - - 6 6 - - No interest charged

4 - - 6 - -Associated companiesMillea Life Insurance Thailand Plc. - - - 53 - - - 68Worldclass Rent a Car Co., Ltd. 16 29 3 - 2 - 1 - MLR - 1%

29 3 53 - 1 68Related companiesBurapa Steel Industries Co., Ltd. 297 297 - 13 297 297 - 14 15% , 0.1%S. Capital Co., Ltd. 280 280 - - 280 280 - - 15%Sunshine Plc. 277 277 - - 277 277 - - 15 - 19%Srithepthai Plaschem Ltd. 283 283 - - 283 283 - - MLR Avg (KTB,

BBL, BT, BAY)- 3%, UCR

Suetrong Construction Co., Ltd. 828 804 27 5 1,004 846 27 - MLR,No interest charged

P.T.K. Metal Co., Ltd. 258 256 - - 883 352 - - MLR (Avg.KTB+BT), 2.5%

Ratchaburi Electricity Generating Co., Ltd. 2,670 - - - 2,344 2,716 - - 3.25%Maxwin Builders Ltd. 152 149 - - 160 156 - - No interest charged, 4%Bangkok Solar Co., Ltd. 252 267 299 17 207 246 - 3 MLR - 1%,

3.5% - 4.5%Cenmetal (Thailand) Co., Ltd. - - - 9 - - - 11Sukhumvit Asset Management Co., Ltd. - - - 45 - - - -Thai Post Co., Ltd. - - - - - - - 356Thai Asset management Corporation - - - 2,760 - - - -Others 198 126 43 13 144 167 8 4

2,739 369 2,862 5,620 35 388

Related persons 3 2 - - 4 - -(Unit: Million Baht)

The Bank only2005 2004

Average Averageloans Out- loans Out- Pricing

Outstanding standing Obliga- Outstanding standing Obliga- policyloans Loans tions Deposits loans Loans tions Deposits for loans

Subsidiary companiesBT Securities Co., Ltd. 224 161 - 63 595 202 - 102 MLR, MMRBT Leasing Co., Ltd. 197 555 - 60 49 1 - 1 MLR-3%BT Asset Management Co., Ltd. - - - 17 - - - 5BT Consultant Co., Ltd. 2 4 - 2 - - - 10 MOR + 1%BT Insurance Co., Ltd. - - - 39 - - - 26BT Worldlease Co., Ltd. 195 656 - 5 - - - - MLR+2%,

MOR+2%Sathorn Asset Management Co., Ltd. 22 268 - 25 - - - - MLR - 1%Nava Factoring Co., Ltd. 6 4 - - 6 6 - - No interest charged

1,648 - 211 209 - 144Associated companiesMillea Life Insurance Thailand Plc. - - - 53 - - - 68Worldclass Rent a Car Co., Ltd. 16 29 3 - 2 - 1 - MLR - 1%

29 3 53 - 1 68

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(Unit: Million Baht)The Bank only

2005 2004Average Averageloans Out- loans Out- Pricing

Outstanding standing Obliga- Outstanding standing Obliga- policyloans Loans tions Deposits loans Loans tions Deposits for loans

Related companiesBurapa Steel Industries Co., Ltd. 297 297 - 13 297 297 - 14 15% , 0.1%S. Capital Co., Ltd. 280 280 - - 280 280 - - 15%Sunshine Plc. 277 277 - - 277 277 - - 15 - 19%Srithepthai Plaschem Ltd. 283 283 - - 283 283 - - MLR Avg

(KTB, BBL, BT,BAY) - 3%, UCR

Suetrong Construction Co., Ltd. 828 804 27 5 1,004 846 27 - MLR, No interest chargedP.T.K. Metal Co.,Ltd. 258 256 - - 883 352 - - MLR (Avg

KTB+BT), 2.5%Ratchaburi Electricity Generating Co., Ltd. 2,670 - - - 2,344 2,716 - - 3.25%Maxwin Builders Ltd. 152 149 - - 160 156 - - No interest charged, 4%Bangkok Solar Co., Ltd. 252 267 299 17 207 246 - 3 MLR - 1%,

3.5% - 4.5%Cenmetal (Thailand) Co., Ltd. - - - 9 - - - 11Sukhumvit Asset Management Co., Ltd. - - - 45 - - - -Thai Post Co., Ltd. - - - - - - - 356Thai Asset Management Corporation - - - 2,760 - - - -Others 198 126 43 13 144 167 8 4

2,739 369 2,862 5,620 35 388Related persons 3 2 - - 4 - -

The Bank pays interests on deposits made by related parties at the normal rates granted to general depositors.The Bank has transactions with the FIDF, its major shareholder, in connection with Gain/Loss Sharing and Yield

Maintenance Agreement, yield maintenance income, gain/loss sharing from non-performing asset management and notespayable. However, the significant outstanding balances and transactions between the Bank and the FIDF are separately presentedin the balance sheets and statements of earnings.

38. FINANCIAL INFORMATION BY SEGMENTThe Bank and its subsidiaries’ businesses are carried on exclusively in Thailand. As a result, all the revenues, operating

profits and assets as reflected in these financial statements pertain to the aforementioned geographic area.

39. FINANCIAL INSTRUMENTSFinancial instruments are any contract which gives rise to both a financial asset of one enterprise and a financial liability or

equity security of another enterprise.

39.1 CREDIT RISKCredit risk is the risk that the counterparty to a financial instrument or a borrower fails or intends to fail to comply

with the conditions or agreements specified in the financial instruments, and consequently causes the Bank to incur a financial loss.The Bank has implemented a credit risk management process, covering both credit risk measurement and control.

The Bank uses credit risk rating tools to measure credit risk, taking into account the quality of the borrower, which is determinedbased on the probability of default within 12 months commencing as from the balance sheet date and expected loss given default.The application of credit risk rating tools helps support the quality of the Bank’s credit approval process in order to increase anefficiency of credit control and monitoring, and in the future will enable it to determine the return or interest rate appropriate to thelevel of credit risk determined.

The Bank has a Risk Management Committee, which is responsible for setting up and developing credit policiesand credit underwriting guidelines, so that the credit approval procedures are systematic, transparent and in compliance with theBank’s risk management principles, the Banking Business Undertaking Act B.E. 2505, regulations of the Securities and ExchangeCommissions and the Stock Exchange of Thailand, and other related legislation, as well as responsive to changes incircumstances.

When deciding whether to approve the underwriting of loans, the Bank takes into account the repayment capabilityof the borrowers, with consideration given to credit type, the financial status of the borrowers, and the economic situations and thestatus of industry. Furthermore, the Bank has set up the Credit Audit Unit, which is an independent unit, to ensure that the creditapproval processes are transparent and effective.

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The maximum credit risk exposure is the carrying value of the financial assets after deducting by allowance for lossesas stated in the balance sheet, and the risk of off-balance sheet commitments incurred as a result of loan guarantees and otherguarantees.

As at 31 December 2005 and 2004, the Bank had the following off-balance sheet commitments as summarised bythe period to maturity, counting from the balance sheet dates, of the contracts : -

(Unit: Million Baht)Consolidated and the Bank only

Counting from 31 December 2005 Counting from 31 December 2004Not more over Not more over

than 1 year 1 year Total than 1 year 1 year Total

Aval to bills 819 - 819 148 - 148Guarantees of loans 461 - 461 468 - 468Liabilities under unmatured import bills 439 74 513 92 479 571Letters of credit 2,001 175 2,176 2,842 339 3,181Other guarantees 7,048 353 7,401 5,574 489 6,063

39.2 MARKET RISKMarket risk is the risk that changes in interest rates, foreign exchange rates and securities prices may have an effect

on the Bank’s foreign currency position and investment status, and consequently causes the Bank to incur a financial loss. Assuch, market risk consists of interest rate risk, foreign exchange risk and equity position risk.

The Bank has a Market Risk Management Unit and Asset and Liability Management Unit, which are responsible forassessment of the risk resulting from fluctuations in foreign exchange rates and interest rates. The Bank has implemented a marketrisk management process which covers both the measurement and control of such risks. The Bank has adopted the Value at Risk(VaR) model together with other factors sensitivity, such as DVO1, for risk measurement, to determine and report on theacceptable and pre-warning levels of market risk for its trading portfolio, enabling the Bank to take action to adjust its market riskto an appropriate level in a timely manner.

39.2.1 Structured interest riskInterest rate risk is the risk that changes in market interest rates may lead to changes in the value of financial

instruments, and fluctuations in revenue and the value of financial assets and liabilities. Interest rate risk is incurred as a result ofinterest rate structure and the characteristics and structure of the Bank’s assets, liabilities and capital.

As at 31 December 2005 and 2004, financial assets and liabilities classified by types of interest rate are asfollows : -

(Unit: Million Baht)The Bank only

2005Floating Fixed Non-interest

Descriptions interest rate interest rate bearing TotalFinancial AssetsCash - - 1,905 1,905Interbank and money market items 665 6,491 5,550 12,706Securities purchased under resale agreements - 2,200 - 2,200Investments 39,905 12,417 14,238 66,560Loans 78,689 55,187 3,573 137,449Financial LiabilitiesDeposits 43,593 149,209 1,771 194,573Interbank and money market items 8,326 42,406 93 50,825Liabilities payable on demand - - 515 515Securities sold under repurchase agreements - 7,000 - 7,000Borrowings - 110 3,304 3,414

(Unit: Million Baht)The Bank only

2004Floating Fixed Non-interest

Descriptions interest rate interest rate bearing TotalFinancial AssetsCash - - 1,424 1,424Interbank and money market items 474 8,000 5,670 14,144Securities purchased under resale agreements - 3,000 - 3,000Investments 19,395 8,748 11,399 39,542Loans 54,646 70,938 4,465 130,049

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(Unit: Million Baht)The Bank only

2004Floating Fixed Non-interest

Descriptions interest rate interest rate bearing Total

Financial LiabilitiesDeposits 49,462 133,596 1,501 184,559Interbank and money market items 10,710 21,413 402 32,525Liabilities payable on demand - - 182 182Borrowings - 110 3,304 3,414

The outstanding balances of loans which have floating interest rates or fixed interest rates include loans on whichinterest recognition is discontinued (presented before deducting allowance for doubtful account losses).

In addition, the average balances of the financial assets and liabilities of the Bank generating revenues and expenses,calculated based on the average balances outstanding during the year, and the average interest and dividend rate for the yearsended 31 December 2005 and 2004 can be summarised as follows :-

(Unit: Million Baht)The Bank only

2005 2004

Average Interest Average Average Interest Averagebalances and dividend Rate (%) balances and dividend Rate (%)

Performing financial assetsInterbank and money market items 11,832 206 1.74 12,108 130 1.07Securities purchased under resale agreements 2,025 80 3.96 3,608 78 2.16Investments 59,219 2,206 3.73 50,590 1,088 2.15Loans 133,314 4,704 3.53 124,869 3,934 3.15Performing financial liabilitiesDeposits 193,586 3,957 2.04 191,742 3,360 1.75Interbank and money market items 42,956 1,073 2.50 28,249 403 1.43Liabilities payable on demand 435 - - 234 - -Securities sold under repurchase agreements 833 11 1.34 318 2 0.63Borrowings 3,414 4 0.11 3,368 2 0.06

39.2.2 Structured FX riskForeign exchange risk is the risk that changes in foreign exchange rates may result in changes in the value of

financial instruments, and fluctuations in revenues and the value of financial assets and liabilities.The Bank’s Financial Products Trading Division is responsible in foreign currency position management, and is

under the supervision of the Money Market Committee.In addition to the financial assets and liabilities denominated in foreign currencies already disclosed in the

relevant notes to the financial statements, as at 31 December 2005 and 2004, the Bank has the following net foreign currencypositions categorised by major foreign currencies : -

(Unit: Million Baht)The Bank only

2005 2004Other Other

USD EURO* Currencies* USD EURO* Currencies*

Spot 327.35 26.73 (202.55) 128.21 5.66 4.91Forward- Forward contract (329.20) (24.93) 192.26 (137.00) (5.12) (2.90)Total (1.85) 1.80 (10.29) (8.79) 0.54 2.01

* EURO and other currencies are stated in USD equivalents.39.2.3 Equity position risk

Equity position risk is the risk that changes in the market prices of equity securities may result in changes in thevalue of investments, and fluctuations in revenue and the value of financial assets.

39.3 LIQUIDITY RISKLiquidity risk is the risk that the Bank will be unable to liquidate its financial assets and/or procure sufficient funds to

discharge its obligations in a timely manner, resulting in the Bank incurring a financial loss.The Treasury Division of the Bank is responsible for liquidity management, including both short-term and long-term

sources of fund procurement and debt security investment management. The overall liquidity risk management is monitored by theAsset and Liability Management Committee.

The period to maturity, counting from the balance sheet date, of financial instruments outstanding as at 31 December2005 and 2004 are as follows :-

73

(Unit: Million Baht)The Bank only

Counting from 31 December 2005Less than More than

Descriptions At call 1 year 1 year No maturity Total

Financial AssetsCash 1,905 - - - 1,905Interbank and money market items 2,284 6,815 3,607 - 12,706Securities purchased under resale agreements - 2,200 - - 2,200Investments(1) 255 7,695 49,619 8,992 66,561Loans(2) 51,524 33,702 52,223 - 137,449Financial LiabilitiesDeposits 45,294 140,765 8,514 - 194,573Interbank and money market items 13,411 32,887 4,527 - 50,825Liabilities payable on demand 515 - - - 515Securities sold under repurchase agreements - 7,000 - - 7,000Borrowings 544 - 2,870 - 3,414(1) Investments classified as maturity at call of Baht 255 million are investment in defaulted debt securities.(2) A part of loans classified as maturity at call of Baht 49,932 million are outstanding balances of defaulted loans classified in sub-standard category and upward.

However, repayment schedules of these loans are dependent upon new restructuring conditions.

(Unit: Million Baht)The Bank only

Counting from 31 December 2004Less than More than

Descriptions At call 1 year 1 year No maturity Total

Financial AssetsCash 1,424 - - - 1,424Interbank and money market items 2,200 8,216 3,728 - 14,144Securities purchased under resale agreements - 3,000 - - 3,000Investments(1) 349 807 27,977 10,409 39,542Loans(2) 47,859 39,498 42,692 - 130,049Financial LiabilitiesDeposits 50,586 116,905 17,068 - 184,559Interbank and money market items 8,460 18,928 5,137 - 32,525Liabilities payable on demand 182 - - - 182Borrowings 544 - 2,870 - 3,414(1) Investments classified as maturity at call of Baht 349 million are investment in defaulted debt securities.(2) A part of loans classified as maturity at call of Baht 47,859 million are outstanding balances of defaulted loans classified in sub-standard category and

upward. However, repayment schedules of these loans are dependent upon new restructuring conditions.

39.4 FAIR VALUEFair value represents the amount for which an asset could be exchanged or a liability settled between knowledgeable

and willing parties in an arm’s length transaction. The Bank has estimated the fair value of financial instruments as follows :-(a) Financial assets

Determination of the fair value is dependent upon the characteristics of the financial instrument. The fair valuesof most financial assets, including cash, interbank and money market items, securities purchased under resale agreements, andloans, are presented at the amount stated in the balance sheets. The fair value of these financial assets is approximated at theirrespective carrying values since the values of such financial instruments are predominantly subject to market interest rates.Financial instruments with standard terms and conditions which are traded on an active and liquid market, such as investments,have their fair value determined by the quoted market prices.

(b) Financial liabilitiesThe fair values of financial liabilities, including borrowings and deposits, interbank and money market items,

liabilities payable on demand, and debentures, are considered to approximate their respective carrying values for the samereasons as detailed for financial assets above.

As at 31 December 2005, differences between the book value and the fair value of financial instruments of theBank are estimated to be immaterial, except for the investments in held-to-maturity debt securities, which have fair values ofapproximately Baht 1,358 million lower than their book values and the non-trading derivatives, which have fair values of approxi-mately Baht 179 million lower than their book values.

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39.5 FINANCIAL DERIVATIVESThe Bank engages in financial derivatives activities as required in the normal course of business of the Bank to meet

its clients’ needs and to manage the risks of the Bank arising from fluctuations in foreign exchange rates and interest rates.As at 31 December 2005 and 2004, financial derivatives as classified by their maturities are as follows :-

(Unit: Million Baht)The Bank only

2005 2004

Less than 1 year Over 1 year Total Less than 1 year Over 1 year Total

Forward and spot contracts- Bought 45,933 5,369 51,302 10,351 2,233 12,584- Sold 40,537 7,653 48,190 16,128 590 16,718

Foreign currency swap contracts- Bought 11,213 25,125 36,338 2,693 17,355 20,048- Sold 11,463 25,204 36,667 2,613 17,310 19,923

Fx currency option- Wrote call option 895 630 1,525 671 - 671- Wrote put option 1,224 - 1,224 191 - 191- Bought call option 586 - 586 680 - 680- Bought put option - - - 20 - 20

Interest rate futures- Bought 4,518 - 4,518 - - -- Sold 7,393 4,107 11,500 1,016 4,688 5,704

Interest rate cap- Bought - 2,192 2,192 - - -- Sold - 3,013 3,013 - - -

Interest rate swap contracts- Fixed rate payer 14,965 17,607 32,572 3,092 4,105 7,197- Floating rate payer 16,855 17,305 34,160 5,284 6,799 12,083- Fixed rate payee 16,555 15,935 32,490 4,084 5,229 9,313- Floating rate payee 15,265 18,977 34,242 4,292 5,675 9,967

The Bank sets up policies and relevant risk limits by which it requires risk reporting and control procedures for the varioustypes of risk, as a control over financial derivative activities. The Bank realises that financial derivatives involve credit risk andconsiders credit limits for its customers in general. The same credit approval process used when granting loans to a customer isadopted for financial derivative customers, so that the Bank is able to maintain risk at acceptable levels. However, financialderivatives may cause the Bank to incur gains or losses as they are sensitive to foreign exchange rates and interest rates, whichcan fluctuate materially as the market situation changes.

40. PRESENTATIONThe presentation of the financial statements has been made in compliance with the requirement of the Notification of the

Bank of Thailand relating to the format of the financial statements of commercial banks dated 10 May 2001.Certain amounts in the prior years’ financial statements have been reclassified to conform to the current period’s

classification, with no effect on previously reported net earnings or shareholders’ equity.

41. APPROVAL OF FINANCIAL STATEMENTSThese financial statements were authorised by the Board of Directors of the Bank on 24 February 2006.

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OTHER INFORMATIONBankThai Public Company Limited and its Subsidiaries

CORPORATE INFORMATION : BANKTHAI PUBLIC COMPANY LIMITEDCompany Registration No. BorMorJor 480

Location of registered office : No. 44, North Sathorn Road, Silom, Bangrak, Bangkok 10500, ThailandBusiness Type : Commercial BankingTelephone : 0-2633-9000 - 3, 0-2638-8000 Facsimile : 0-2633-9026BANKTHAI CARE CENTRE : 0-2626-7777 and enter 0Website : http://www.bankthai.co.th

1. CAPITAL AND MAJOR SHAREHOLDERSRegistered capital : Baht 52,002,500,000 (Fifty-Two Thousand and Two Million and Five Hundred Thousand),

incorporating:Ordinary shares : 1,493,450,000 shares

Par value : Baht 10 per shareTotal value : Baht 14,934,500,000

Preferred shares : 3,706,800,000 sharesPar value : Baht 10 per shareTotal value : Baht 37,068,000,000

Paid-up capital : Baht 14,934,500,000 (Fourteen Thousand and Nine Hundred Thirty-Four Million and FiveHundred Thousand), comprising:

Ordinary shares : 1,493,450,000 sharesPar value : Baht 10 per shareTotal value : Baht 14,934,500,000

The difference between the registered capital and paid-up capital of Baht 37,068,000,000 (Thirty Seven Billion Sixty EightMillion Baht) comprising 3,706,800,000 preferred shares at Baht 10 per share is intended for honouring the Bank’s obligationrelated to the preferred share purchase warrants. The preferred shares in question are non-cumulative and convertible into theBank’s ordinary shares and have precedence over ordinary shares in the event of capital write-down.

Type : The warrant shows the name of the holderAllocation method : Private placement with the Financial Institution Development Fund (FIDF)Restrictions on transfer : Non-negotiableDate of issue : 9 May 2001Issue price : - 0 - (Baht Zero)Warrants to be issued : 3,706,800,000 (Three Billion Seven Hundred Six Million Eight Hundred Thousand) unitsNumber of unexercised warrants : 3,706,800,000Right to subscribe : Each warrant entitles its holder to subscribe for one (1) preferred shareExercise unit price : - 10 - (Baht Ten)Term of warrant : 10 yearsExpiry date : 8 May 2011

ISSUE OF SUBORDINATED DEBENTURESAs at 31 December 2005, the Bank’s subordinated debentures amounted to Baht 2,760 million. These 10-year

non-interest-bearing issues maturing 1 February 2009 were transferred from the state-intervened financial institutions asfollows: (a) Baht 1,509.66 million from Dhana Siam Finance Public Co. Ltd.; (b) Baht 500 million from IFCT Finance andSecurities Public Co. Ltd.; and (c) Baht 750 million from First City Investment Finance Public Co. Ltd.

2. SHAREHOLDING STRUCTUREA. THE TEN LARGEST SHAREHOLDERS

As at 8 April 2005, the closing date of the Bank’s share registration book, the ten largest shareholders with the right toparticipate in the Eleventh Annual General Meeting of Shareholders (2005) were as follows:

Shareholder Nationality Number Percentage of of shares total shares

1. Financial Institution Development Fund Thai 731,450,194 48.982. BankThai Public Co. Ltd. (Treasury Stock) Thai 93,355,900 6.253. Millea Asia Pte. Ltd. Thai 74,672,500 5.004. BT Securities Co. Ltd. and BT Asset Management Co. Ltd Thai 73,317,637 4.915. National Securities Public Co. Ltd. Thai 59,461,700 3.986. Krung Thai Thanakit Finance Public Co. Ltd. Thai 50,772,000 3.407. Mr. Somchai PongChatura Thai 27,000,000 1.818. Mr. Sommai PongChatura Thai 23,000,000 1.549. Com Link Co. Ltd. Thai 23,000,000 1.5410. Mr. Samleung Manuphol Thai 22,800,000 1.53

Other shareholders Others 314,620,069 21.06 Total 1,493,450,000 100.00

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Shareholder Nationality Number Percentage of of shares total shares

Thai shareholders 1,405,361,974 94.10Foreign shareholders 88,088,026 5.90

B. SHAREHOLDERS WITH SIGNIFICANT INFLUENCE ON THE OPERATIONAL POLICIES OR MANAGEMENT OF THE BANKThe Financial Institution Development Fund (FIDF) is the Bank’s largest shareholder. As at 8 April 2005, the closing date

of the Bank’s share registration book, the FIDF held 731,450,194 shares, assuming a 48.98 per cent ownership.

THE FINANCIAL INSTITUTION DEVELOPMENT FUND (FIDF)The Financial Institution Development Fund (FIDF) was established, on 27 November 1985, through the enactment of an

Emergency Decree Regulating the Affairs of the Bank of Thailand, to implement financial-support measures to rehabilitate anddevelop financial institutions and maintain stability in the system to provide it with resilience in the face of adverse events. Underthe umbrella of the BOT, the FIDF is empowered to: (a) guarantee payment to the depositors of state-intervened financialinstitutions and repay the depositors in accordance with the criteria and conditions guaranteed by the FIDF; (b) manage assetsand liabilities as well as bond funds of those troubled institutions; (c) direct and oversee policies governing the management ofassets and internal processes of the institutions concerned; and (d) secure payment for liquidation of assets of those institutionswhose depositors were paid by the FIDF. In addition, the FIDF is entrusted with the task of studying and arranging for theestablishment of a Deposit Insurance Fund.

The FIDF is both a part of, and a separate juristic entity within, the Bank of Thailand (BOT). The Fund ManagementDepartment of the BOT is responsible for carrying out the operations of the FIDF and providing administrative staff. The FIDFmaintains its own accounting records and budget. The Auditing General Office audits the FIDF and reports the audit results to theMinister of Finance and keeps the BOT informed.

The FIDF is managed by the Fund Management Committee, comprising the BOT Governor as Chairman, and the PermanentSecretary of the Ministry of Finance as Deputy Chairman. In addition, no less than 5 and no more than 9 members are appointedby the Minister of Finance. Currently, the Committee consists of 9 members, namely four representatives from the BOT, three fromthe Ministry of Finance, one from the Attorney General Office and one from the State of Council Office. The Assistant Governor ofthe Fund Management Group of the BOT serves as Secretary to the Committee and Manager of the FIDF.

THE FIDF AS THE BANK’S MAJOR SHAREHOLDERAs part of the Government’s policy move to assist troubled financial institutions, the FIDF acquired major shareholding in the

Bank. A chronology of events leading up to the acquisition of such shareholding is presented below.On 14 August 1998, the Government announced a comprehensive financial restructuring package designed to strengthen the

financial system and restructure the management of the intervened banks and finance companies. The Cabinet endorsed thismeasure on 27 October 1998 and the Ministry of Finance issued a notification to the same effect on 28 December 1998.Consequently, Union Bank of Bangkok Public Co. Ltd. and 12 intervened finance and securities companies were consolidated withKrung Thai Thanakit Finance and Securities Public Co. Ltd. (renamed Krung Thai Thanakit Finance Public Co. Ltd., or “Krung ThaiThanakit”). The 12 companies were Nava Finance Public Co. Ltd., Union Asia Finance Public Co. Ltd., Mahatun FinanceCo. Ltd., Bangkok Asian Finance Co. Ltd., Ksit Finance and Securities Public Co. Ltd., Erawan Trust Co. Ltd., Progressive FinanceCo. Ltd., Dhana Siam Finance and Securities Public Co. Ltd., First City Investment Public Co. Ltd., Vajiradhanathun FinanceCo. Ltd., Thai Summit Finance and Securities Ltd., and IFCT Finance and Securities Public Co. Ltd.

The consolidated entity subsequently changed the name of Union Bank of Bangkok Public Co. Ltd. to BANKTHAI PUBLICCOMPANY LIMITED, resulting in the establishment of a new commercial bank effective 21 December 1998.

In 1999, the Bank readjusted its share par value from Baht 0.01 to Baht 10, and raised Baht 40,000 million in capitalthrough the issue of 4,000 million non-cumulative preferred shares at Baht 10 per share. The shares carried with them the rightto convertibility into the Bank’s ordinary shares as well as precedence over ordinary shares in the event of capital write-down. Thenew issues consisting of 3,706.8 million preferred shares were placed directly with the FIDF at Baht 10 per share. Consequently,the Bank’s registered capital increased to Baht 52,334 million, of which Baht 49,402 million was in paid-up capital.

Subsequently, in 2000, the Bank reduced its registered capital by Baht 2,932 million through the cancellation of unsoldpreferred shares. At the same time, the Bank increased its registered capital by issuing 260.05 million ordinary shares at Baht10 per share. The new issues were placed directly with the shareholders of Krung Thai Thanakit at Baht 5.6184 per share. Inthis process, the Bank offered the shareholders of Krung Thai Thanakit the opportunity to swap their ordinary shares valued by theBank at Baht 1.3566 per share (or in the ratio of 0.2414478 of BankThai share to one Krung Thai Thanakit share) for theBank’s ordinary shares. Following the share swap, the Bank’s registered and paid-up capital amounted to Baht 52,002.5 million,of which 5,145.3 million shares (comprising 1,438.5 million ordinary shares and 3,706.8 million preferred shares) were held bythe FIDF, making it the Bank’s largest shareholder.

At the end of 2000, following a decision taken by the Cabinet on 19 September 2000 concerning the compensation for lostrevenues on sub-quality assets, the Bank reduced its capital by canceling all of its preferred shares and refunding the share capitalamounting to Baht 37,068 million to the FIDF. This led to the issue, on 9 May 2001, of 3,706.8 million non-transferablewarrants to the FIDF, each convertible into one preferred share at Baht 10 per share. The 10-year warrants maturing 8 May2011 are exercisable immediately, in whole or in part, throughout the 10-year period starting from the date of issuance. Tohonour this obligation, the Bank issued 3,706.8 million preferred shares at Baht 10 per share and filed them with the Registrarof Public Limited Companies. As a result, the Bank’s registered share capital stood at Baht 52,002.5 million, comprising

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1,493.45 million ordinary shares and 3,706.8 million preferred shares at Baht 10 per share. Of that figure, Baht 14,934.5million was in paid-up capital comprising 1,493.45 million ordinary shares, of which 1,438.5 million or 96.32 per cent were heldby the FIDF.

In 2002, and in line with the Government’s thrust on state enterprise reform, the FIDF reduced its shareholding in the Bankthrough a public offering of 707 million ordinary shares.

With a view to preventing the dilution effect of warrants to purchase shares on an as-converted basis, the Board of Directorsdecided to buy the warrants back from the FIDF and cancel them. Consequently, on 23 September 2002, the Bank entered intoa warrant buyback option agreement with the FIDF whereby the Bank is entitled to gradually redeem the 3,706.8 warrants overthe period 23 September 2003 to 8 May 2011 at Baht 0.27907 per unit plus interest (determined by the average cost of fundsincurred by the Bank between 23 September 2002 and the buyback date). In this respect, the FIDF agrees not to exercise itsconversion rights over the said period. However, if any of the warrants should remain at the end of the reacquisition period, theFIDF shall have the right to exercise its conversion rights in accordance with the original terms and conditions of the warrant. Asa preliminary measure, the Bank paid a sum of Baht 300 million to the FIDF for the above reacquisition right.

The public offering of ordinary shares held by the FIDF changed the Bank’s shareholding structure with the FIDF remaining thelargest shareholder with 731,450,194 shares, or 48.98 per cent of the total paid-up share capital. Other shareholders consistof institutions, juristic persons and natural persons at 51.02 per cent. The revised shareholding structure changed the status ofthe Bank from a state-run commercial bank with the FIDF at the helm to a non-state commercial bank.

MAJOR POLICY INITIATIVEThe Ministry of Finance appointed its representative, namely, Mr. Pongpanu Svetarundra to BankThai Board of Directors, while

the FIDF also designated two of its representatives to similar positions, namely, Mr.Techapit Sangsingkeo and Mrs. SaowaneeSuwannacheep.

Mr. Pongpanu Svetarundra has been delegated signature authority while Mr. Techapit Sangsingkeo and Mrs.SaowaneeSuwannaheep have not.

OBLIGATION TO ISSUE NEW SHARES-NA-

DIVIDEND POLICYThe Bank’s policy is to pay dividend to shareholders at not less than 40 per cent of the annual net profit (after juristic person

income tax).Insofar as the Bank’s subsidiaries are concerned, the decision on this matter lies with their respective Boards of Directors.

3. INVESTMENT IN COMPANIES AT 10 PER CENT OR MORE OF PAID-UP CAPITALPercentage of

Type of Type of Paid-up capital Number of Company’sName/Location Business share (number of shares) shares held paid-up capital

1. BT Leasing Co. Ltd. Leasing Ordinary 20,000,000 19,999,994 99.99Thai CC Tower, Rooms 327-9, 32nd Floor,889 Sathorn Tai Road, Yannawa, Sathorn, Bangkok 10120

2. BT Insurance Co. Ltd. Insurance Ordinary 30,000,000 29,999,910 99.99BankThai Building (Langsuan), 23rd Floor,44 Langsuan Road, Bangkok (Tel: 0-2657-1700)

3. BT Securities Co. Ltd. Securities Ordinary 120,000,000 119,999,993 99.99BankThai Building (Langsuan), 23-26th Floor,44 Langsuan Road, Bangkok (Tel: 0-2657-9000)

4. BT Asset Management Co. Ltd. Mutual Fund Ordinary 10,000,000 9,999,993 99.99BankThai Building (Langsuan), 16th Floor,44 Langsuan Road, Bangkok (Tel: 0-2657-3155)

5. BT Business Consulting Co. Ltd. Consulting Ordinary 330,000 329,993 99.99BankThai Building (Langsuan), 24th Floor,44 Langsuan Road, Bangkok (Tel: 0-2657-3155)

6. Sathorn Asset Management Co. Ltd. Asset Ordinary 2,500,000 24,999,993 99.99BankThai Building, 17th Floor, Sathorn Nua Road, ManagementBangrak, Silom, Bangkok (Tel: 0-2638-8000)

*7. P.C. Patanasub Co. Ltd. Commerce Ordinary 10,000 9,993 99.93BankThai Building (Langsuan), 44 Langsuan Road, Bangkok

*8. Krungthai Thanakit Public Co. Ltd. Finance Ordinary 1,076,976,000 1,067,229,773 99.10Sermmit Tower, 15-16th Floor,159 Sukhumvit 21, Asoke Road, Bangkok

*9. Nava Factoring Co. Ltd. Factoring Ordinary 10,000,000 8,999,993 90.00662/26 Soi Charoensuk, Rama IV Road, Bangkok

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Percentage ofType of Type of Paid-up capital Number of Company’s

Name/Location Business share (number of shares) shares held paid-up capital

*10. Nava SC Securities Co. Ltd. Finance Ordinary 95,000,000 76,155,817 80.10c/o 22nd Floor, Prince’s Building, Central, Hong Kong

11. BT WorldLease Co. Ltd. Leasing Ordinary 24,000,000 18,010,000 75.04Thai CC Tower, Rooms 346-9, 34th Floor,889 Sathorn Tai Road, Yannawa, Sathorn, Bangkok 10120Tel. 0-2675-6300; Fax: 02675-6299

12. Suetrong Construction Co. Ltd. Property Ordinary 5,171,042 2,585,521 50.00101 Moo 3, Ratanatibhet Road, Saimah, DevelopmentAmphur Muang, NonthaburiTel: 0-2595-1013; Fax: 0-2595-1014

13. P.T.K. Metal Co. Ltd. Steel Preferred 481,310,451 152,704,902 31.33956/3-6 Therd Thai Road, Talad-Plu, Thonburi, Bangkok 10600 (voting right: 7.73%)Tel: 0-2466-7050-3; Fax: 0-2472-2314

14. Millea Life Insurance (Thailand) Public Co. Ltd. Insurance Ordinary 70,000,000 21,000,000 30.00Empire Tower, 26th Floor, 195 Sathorn Tai Rod,Yannawa, Sathorn, BangkokTel: 0-2670-1400; Fax: 0-2670-1401-11

15. WorldClass Rent A Car Co. Ltd. Car rental Ordinary 3,800,000 760,000 20.00Royal City Avenue, 19/23 New Petchburi Road, Bangkok PreferredTel: 0-2203-0225; Fax: 0-2203-0250

16. Burapa Steel Industries Co. Ltd. Steel Ordinary 17,392,702 2,683,570 15.435th Floor, Nation Tower, Manufacturing46/11-12 Bangna-Trad Road, Banga, Bangkok 10260Tel: 0-2751-4001-5; Fax: 0-2751-4006

17. Sri U-Thong Co. Ltd. Construction Ordinary 107,238,231 16,623,720 15.50SP Building, 12th Floor, 388 Phaholyothin Road,Payathai, Bangkok Tel: 0-2273-0032; Fax: 0-2273-0517

18. Energy and Infrastructure Development Co. Ltd., Real estate Ordinary 60,000,000 8,500,000 14.17SP Building, 12th Floor, 388 Phaholyothin Road,Payathai, Bangkok Tel: 0-2273-0032; Fax: 0-2273-0517

19. Srithepthai Plaschem Co. Ltd. Plastic products Ordinary 1,000,000 120,568 12.06109 Moo 8, Bangna-Trad Road, Km. 2.5, Bangna,Bangkok 10260 Tel: 0-2398-0027; Fax: 0-2383-0201

20. Thai Nam Plastic Public Co. Ltd. Plastic products Ordinary 21,175,004 2,180,146 10.3040 Moo 7, Petchkasem Road, Km 23, OmNoi,Kratumban, Samutsakorn 74130, ThailandTel: 0-2810-3000; Fax: 0-2420-9967

21. Tawana Ramada Hotel Co. Ltd. Hotel Ordinary 33,909 3,390 10.0080 Suriwongse Road, Siphaya, Bangrak, BangkokTel: 0-2236-0361; Fax: 0-2236-3738

22. Sunshine Public Co. Ltd. Electrical appliances Ordinary 40,000,000 4,000,000 10.00Ratchada Complex, 522 Ratchadapisek Road,Kuaykwang, Bangkok Tel: 0-2541-4006; Fax: 0-2541-4014

*23. Global Leasing Co. Ltd. Leasing Ordinary 3,800,000 760,000 10.00Tel: 0-2636-1800; Fax: 0-2626-1820

24. TPF Leasing Co. Ltd. Leasing Ordinary 6,000,000 600,000 10.00Sangthong Thani Building, 25th Floor, Sathorn Nua Road,Bangrak, Bangkok

25. BSL Leasing Co. Ltd. Leasing Ordinary 1,000,000 100,000 10.00Sathorn City Tower, 19th Floor, 175 Sathorn Tai Road, BangkokTel: 0-2670-4700; Fax: 0-2679-6160

26. Advance Manufacturing Leasing Co. Ltd. Leasing Ordinary 20,000,000 2,000,000 10.00Time Square Building, 11th Floor,246 Sukhumvit Road, Bangkok

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Percentage ofType of Type of Paid-up capital Number of Company’s

Name/Location Business share (number of shares) shares held paid-up capital

27. Thanawat Insurance Co. Ltd. Insurance Ordinary 30,000,000 3,000,000 10.00Thanawat Building, 959 Charoenkrung Road, Talad-Noi, Bangkok

28. Ace Capital Co. Ltd. Leasing Ordinary 30,000,000 3,000,000 10.00United Centre, 19th Floor, 323 Silom Road, Bangkok

29. Sanwa Interfood Co. Ltd. Food Ordinary 10,000,000 1,000,000 10.00255 Moo 5, Suwansorn Road, Nonsri, Kabinburi, Prachinburi, Thailand

30. Thai-Ultra Auto Part Co. Ltd. Spare parts manufacturing Ordinary 6,500,000 650,000 10.0059/1 Moo 4, Highwya, 36 Nikompattana, Bankai, Rayong, Thailand

31. Bangkok SMBC Consulting Co. Ltd. Consulting Ordinary 20,000 2,000 10.00Boonmitr Building, 138 Silom Road, Bangkok

*32. UTM Advisory & Capital Management Co. Ltd. Consulting Ordinary 100,000 10,000 10.00BankThai Building (Langsuan), 18th Floor, Langsuan Road, Bangkok

33. Senju Metal Co. Ltd. Wire Manufacturing Ordinary 200,000 20,000 10.00Room 2201, M Thai Tower, 21st Floor, Wireless Road,Lumpini, Pathumwan, Bangkok Tel: 0-2654-3223-5

* Debt settlement is in the pipeline.

4. REFERENCESShare Registrar : Thailand Securities Depository Co. Ltd.(ordinary shares) 62, The Stock Exchange of Thailand Building

4th and 7th Floor, Rachadapisek Road, Klongtoey, Bangkok 10110, ThailandTel: 0-2 29 2800, 0-2654-5599; Fax: 0-2359-1263

Auditor : Ernst & Young Office Ltd.33rd Floor, Lake Rachada Building193/136-137 New Rajadapisek Road Bangkok 10110, ThailandTel: 0-2264-0777; Fax: 0-2264-0789

Auditors in charge : - Mr. Ruth Chaowanagawi, Certified Public Accountant (Thailand), Registration No. 3247; and/or- Mr.Narong Puntawong, Certified Public Account (Thailand), Registration No. 3315; and/or- Miss Ratana Jala, Certified Public Accountant (Thailand), Registration No. 3734

5. A SUMMARY OF FINANCIAL INFORMATIONBANKTHAI PUBLIC COMPANY LIMITED

TABLE OF BALANCE SHEETS AND PERCENTAGEAS AT DECEMBER 31

BAHT : MILLIONAUDITED

2005 2004 (Restated) 2003 (Restated)

AMOUNT % AMOUNT % AMOUNT %

ASSETSCASH 1,905.50 0.71 1,423.69 0.61 1,094.33 0.43INTERBANK AND MONEY MARKET ITEMS 12,726.36 4.73 14,129.27 6.10 15,598.42 6.09SECURITIES PURCHASED UNDER RESALE AGREEMENTS 2,200.00 0.82 3,000.00 1.30 13,100.00 5.12INVESTMENTS - Net 65,178.93 24.21 37,679.69 16.28 37,662.82 14.72LOANS AND ACCRUED INTEREST RECEIVABLES - Net 119,219.03 44.29 111,535.43 48.18 101,392.89 39.62PROPERTIES FORECLOSED - Net 5,778.84 2.15 9,243.37 3.99 9,723.92 3.80CUSTOMERS’ LIABILITY UNDER ACCEPTANCE 402.86 0.15 431.83 0.19 483.76 0.19PREMISES AND EQUIPMENT - Net 2,959.21 1.10 2,654.46 1.15 2,655.04 1.04RECEIVABLES FROM THE FINANCIAL INSTITUTIONS AND

DEVELOPMENT FUND UNDER GAIN/LOSS SHARING ANDYIELD MAINTENANCE AGREEMENT 47,824.74 17.77 43,225.06 18.67 63,712.33 24.90

YIELD MAINTENANCE INCOME RECEIVABLES 8,386.89 3.11 6,519.21 2.82 5,217.90 2.04INTANGIBLE ASSETS 802.42 0.30 662.76 0.29 544.49 0.21OTHER ASSETS 1,790.65 0.66 1,005.13 0.42 4,733.58 1.84TOTAL ASSETS 269,175.43 100.00 231,509.90 100.00 255,919.48 100.00

LIABILITIES AND SHAREHOLDERS’ EQUITYLIABILITIES

DEPOSITS 194,573.32 72.28 184,558.67 79.72 196,323.25 76.71INTERBANK AND MONEY MARKET ITEMS 50,824.83 18.88 32,525.42 14.05 19,530.79 7.63

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BAHT : MILLIONAUDITED

2005 2004 (Restated) 2003 (Restated)

AMOUNT % AMOUNT % AMOUNT %

LIABILITY PAYABLE ON DEMAND 514.60 0.19 182.25 0.08 1,270.74 0.50SECURITICS SOLD UNDER REPURCHASED AGREEMENT 7,000.00 2.60 - - - -BORROWINGS 3,414.16 1.27 3,414.16 1.47 3,304.16 1.29BANK’S LIABILITY UNDER ACCEPTANCE 402.85 0.15 431.83 0.19 483.77 0.19ACCRUED INTEREST EXPENSES 731.60 0.27 427.29 0.18 1,195.77 0.47NOTES PAYABLE TO THE FINANCIAL INSTITUTIONS

AND DEVELOPMENT FUND - - - - 22,000.00 8.60OTHER LIABILITIES 3,228.81 1.20 2,313.44 1.00 5,426.51 2.12

TOTAL LIABILITIES 260,690.17 96.84 223,853.06 96.69 249,534.99 97.51SHAREHOLDERS’ EQUITYISSUED AND PAID-UP SHARE CAPITAL 14,934.50 5.55 14,934.50 6.45 14,934.50 5.84SHARE DISCOUNTS (1,123.61) (0.42) (1,123.61) (0.49) (1,123.61) (0.44)RETAINED EARNINGS AND UNREALIZED (3,274.50) (1.21) (4,102.92) (1.77) (4,610.84) (1.80)TREASURY STOCKS (2,051.13) (0.76) (2,051.13) (0.88) (2,815.56) (1.11)TOTAL SHAREHOLDERS’ EQUITY 8,485.26 3.16 7,656.84 3.31 6,384.49 2.49

TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY 269,175.43 100.00 231,509.90 100.00 255,919.48 100.00

BANKTHAI PUBLIC COMPANY LIMITED AND ITS SUBSIDIARIESTABLE OF BALANCE SHEETS AND PERCENTAGE

AS AT DECEMBER 31BAHT : MILLION

AUDITED2005 2004 (Restated) 2003 (Restated)

AMOUNT % AMOUNT % AMOUNT %

ASSETSCASH 1,907.20 0.71 1,423.82 0.61 1,094.58 0.43INTERBANK AND MONEY MARKET ITEMS 12,829.50 4.75 14,080.32 6.07 14,861.29 5.78SECURITIES PURCHASED UNDER RESALE AGREEMENTS 2,200.00 0.82 3,000.00 1.29 13,100.00 5.10INVESTMENTS - Net 64,328.89 23.84 37,322.44 16.10 37,968.00 14.78TRADING TRANSACTIONS WITH SECURITIES COMPANIES 212.27 0.08 41.62 0.02 106.60 0.04LOANS AND ACCRUED INTEREST RECEIVABLES - Net 119,657.04 44.34 112,155.10 48.37 102,484.19 39.89PROPERTIES FORECLOSED - Net 6,063.48 2.25 9,219.18 3.98 9,697.97 3.78CUSTOMERS’ LIABILITY UNDER ACCEPTANCE 402.85 0.15 431.83 0.19 483.76 0.19PREMISES AND EQUIPMENT - Net 3,055.31 1.13 2,733.91 1.18 2,744.03 1.07RECEIVABLES FROM THE FINANCIAL INSTITUTIONS AND

DEVELOPMENT FUND UNDER GAIN/LOSS SHARING ANDYIELD MAINTENANCE AGREEMENT 47,860.80 17.74 43,223.38 18.64 63,680.82 24.79

YIELD MAINTENANCE INCOME RECEIVABLES 8,385.50 3.11 6,519.65 2.81 5,220.04 2.03INTANGIBLE ASSETS 822.08 0.30 675.88 0.29 552.30 0.21OTHER ASSETS 2,112.85 0.78 1,041.15 0.45 4,904.13 1.91TOTAL ASSETS 269,837.77 100.00 231,868.28 100.00 256,897.71 100.00

LIABILITIES AND SHAREHOLDERS’ EQUITYLIABILITIESDEPOSITS 194,446.90 72.06 184,515.79 79.58 196,289.85 76.41INTERBANK AND MONEY MARKET ITEMS 50,762.70 18.81 32,424.60 13.98 19,468.91 7.58LIABILITY PAYABLE ON DEMAND 514.60 0.19 182.25 0.08 1,270.74 0.49SECURITICS SOLD UNDER REPURCHASED AGREEMENT 7,000.00 2.59 - - - -BORROWINGS 3,414.16 1.27 3,414.16 1.47 3,354.16 1.31BANK’S LIABILITY UNDER ACCEPTANCE 402.85 0.15 431.83 0.19 483.75 0.19ACCRUED INTEREST EXPENSES 730.83 0.27 427.28 0.18 1,194.85 0.47NOTES PAYABLE TO THE FINANCIAL INSTITUTIONS

AND DEVELOPMENT FUND - - - - 22,000.00 8.56OTHER LIABILITIES 4,000.71 1.48 2,815.39 1.21 6,450.80 2.51TOTAL LIABILITIES 261,272.75 96.82 224,211.30 96.69 250,513.06 97.52SHAREHOLDERS’ EQUITYISSUED AND PAID-UP SHARE CAPITAL 14,934.50 5.53 14,934.50 6.44 14,934.50 5.81SHARE DISCOUNTS (1,123.61) (0.41) (1,123.61) (0.48) (1,123.61) (0.44)RETAINED EARNINGS AND UNREALIZED (3,194.74) (1.18) (4,102.78) (1.77) (4,610.68) (1.79)TREASURY STOCKS (2,051.13) (0.76) (2,051.13) (0.88) (2,815.56) (1.10)TOTAL SHAREHOLDERS’ EQUITY 8,565.02 3.18 7,656.98 3.31 6,384.65 2.48

TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY 269,837.77 100.00 231,868.28 100.00 256,897.71 100.00

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BANKTHAI PUBLIC COMPANY LIMITEDTABLE OF STATEMENTS OF EARNINGS AND PERCENTAGE OF TOTAL INCOME AND EXPENSES

FOR THE YEARS ENDED DECEMBER 31BAHT : MILLION

AUDITED

2005 2004 (Restated) 2003

AMOUNT % AMOUNT % AMOUNT %

INTEREST AND DIVIDEND INCOME 8,724.59 87.90 6,437.98 84.25 7,969.76 89.13NON-INTEREST INCOME 1,200.76 12.10 1,203.95 15.75 971.98 10.87

TOTAL INCOME 9,925.35 100.00 7,641.93 100.00 8,941.74 100.00

INTEREST EXPENSES 5,021.73 53.91 3,745.01 53.08 5,824.27 45.23BAD DEBT AND DOUBTFUL ACCOUNTS 215.00 2.31 - - 2,400.00 18.64NON-INTEREST INCOME 4,077.37 43.78 3,310.09 46.92 4,653.45 36.13

TOTAL EXPENSES 9,314.10 100.00 7,055.10 100.00 12,877.72 100.00

NET EARNINGS (LOSSES) FOR THE YEAR 611.25 586.83 (3,935.98)EARNINGS (LOSSES) PER SHARE 0.48 0.47 (3.22)

BANKTHAI PUBLIC COMPANY LIMITED AND ITS SUBSIDIARIESTABLE OF STATEMENTS OF EARNINGS AND PERCENTAGE OF TOTAL INCOME AND EXPENSES

FOR THE YEARS ENDED DECEMBER 31BAHT : MILLION

AUDITED

2005 2004 (Restated) 2003

AMOUNT % AMOUNT % AMOUNT %

INTEREST AND DIVIDEND INCOME 8,839.33 84.83 6,418.51 79.19 7,936.87 83.26NON-INTEREST INCOME 1,581.07 15.17 1,686.30 20.81 1,595.49 16.74TOTAL INCOME 10,420.40 100.00 8,104.81 100.00 9,532.36 100.00

BAD DEBT AND DOUBTFUL ACCOUNTS (REVERSAL OF ALLOWANCE FOR DOUBTFUL ACCOUNTS) 238.01 2.43 - - 2,372.56 17.62INTEREST EXPENSES 5,022.11 51.20 3,743.59 49.80 5,820.80 43.22NON-INTEREST INCOME 4,528.31 46.16 3,774.39 50.20 5,245.98 38.95CORPORATE INCOME TAX 24.20 0.25 - - 28.73 0.21MINORITY INTERESTS (3.48) (0.04) - - 0.27 -

TOTAL EXPENSES 9,809.15 100.00 7,517.98 100.00 13,468.34 100.00

NET EARNINGS (LOSSES) FOR THE YEAR 611.25 586.83 (3,935.98)EARNINGS (LOSSES) PER SHARE 0.48 0.47 (3.22)

BANK THAI PUBLIC COMPANY LIMITEDTABLE OF FINANCIAL RATIOS

FOR THE YEARS ENDED DECEMBER 31

Financial Ratios 2005 2004 (Restated) 2003

PROFITABILITY RATIOGROSS PROFIT % 20.78 29.23 20.57NET PROFIT % 6.16 7.68 (44.02)RETURN ON EQUITY % 7.57 8.36 (45.86)YIELD RATE % 4.60 3.99 5.40COST RATE % 2.14 1.70 2.65SPREAD % 2.46 2.29 2.75RETURN ON INVESTMENT % 4.78 3.66 3.36

EFFICIENCY RATIONET INTEREST INCOME PER ASSETS % 0.60 0.66 0.55RETURN ON ASSETS % 0.24 0.24 (1.49)TURNOVER OF ASSETS TIMES 0.04 0.03 0.03

FINANCIAL RATIODEBT TO EQUITY TIMES 30.72 29.24 39.08LOAN TO BORROWINGS % 69.24 69.12 59.63LOAN TO DEPOSITS % 70.64 70.46 61.02DEPOSIT TO BORROWINGS % 74.64 82.45 78.68DIVIDEND PAID % - - -

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Financial Ratios 2005 2004 (Restated) 2003

ASSET QUALITY RATIOALLOWANCE FOR DOUBTFUL ACCOUNTS PER TOTAL LOAN % 15.81 17.48 19.31BAD DEBT PER TOTAL LOAN % 1.15 0.40 0.54NON-PERFORMING LOAN PER TOTAL LOAN % 4.94 5.09 6.13ACCRUED INTEREST RECEIVABLE PER TOTAL LOAN % 3.09 4.00 4.95

CAPITAL ADEQUACY RATIOCAPITAL FUND PER RISK ASSETS % 8.56 10.99 14.191ST TIER CAPITAL FUNDS PER RISK ASSETS % 8.45 10.98 13.36

REMARK : TOTAL LOANS EXCLUDE LOANS TO FINANCIAL INSTITUTIONS

BANKTHAI PUBLIC COMPANY LIMITED AND ITS SUBSIDIARIESTABLE OF FINANCIAL RATIOS

Financial Ratios 2004 2003 2003

PROFITABILITY RATIOGROSS PROFIT % 24.18 32.44 23.55NET PROFIT % 5.87 7.24 (41.29)RETURN ON EQUITY % 7.54 8.36 (45.81)YIELD RATE % 4.58 3.89 5.28COST RATE % 2.14 1.70 2.66SPREAD % 2.44 2.19 2.63RETURN ON INVESTMENT % 4.89 3.67 3.77

EFFICIENCY RATIONET INTEREST INCOME PER ASSETS % 0.64 0.64 0.53RETURN ON ASSETS % 0.24 0.24 (1.49)TURNOVER OF ASSETS TIMES 0.04 0.03 0.04

FINANCIAL RATIODEBT TO EQUITY TIMES 30.50 29.28 39.24LOAN TO BORROWINGS % 70.66 70.69 61.20LOAN TO DEPOSITS % 72.08 72.07 62.64DEPOSIT TO BORROWINGS % 74.42 82.30 78.36DIVIDEND PAID % - - -

ASSET QUALITY RATIOALLOWANCE FOR DOUBTFUL ACCOUNTS PER TOTAL LOAN % 17.14 18.81 20.49BAD DEBT PER TOTAL LOAN % 1.18 0.42 0.54NON-PERFORMING LOAN PER TOTAL LOAN % 4.97 5.18 6.20ACCRUED INTEREST RECEIVABLE PER TOTAL LOAN % 3.09 3.96 4.90

CAPITAL ADEQUACY RATIOCAPITAL FUND PER RISK ASSETS % 8.56 10.99 14.191ST TIER CAPITAL FUNDS PER RISK ASSETS % 8.45 10.98 13.36

REMARK : TOTAL LOANS EXCLUDE LOANS TO FINANCIAL INSTITUTIONS

6. BUSINESS ACTIVITESThe Bank has been licensed by the Ministry of Finance and the relevant competent authorities to engage in commercial

banking, with focus on taking deposits and extending loans. In this process, the Bank’s first priority remains the provision of acomprehensive array of value-added products and services particularly those involving fees and charges, including: (a) cashmanagement which aims to provide customers with easy and convenient solutions to manage cash flow; (b) financial consultingservices; and (c) trading in financial products. In practice, this translates into the provision of a diverse range of products andservices as set out below.

1. Commercial banking. The Bank is licensed by the Bank of Thailand to provide a full range of commercial banking productsand services, including taking deposits, extending loans, arranging hire-purchase, issuing certificates, providing avals, providingforeign exchange trading services, issuing letters of credit; and providing tele-banking and ATM banking services.

2. Insurance broker. The Bank has been licensed by Department of Insurance, Ministry of Commerce, to provide directinsurance services.

3. Securities and other related services:3.1 Financial consulting services, as authorized by the Securities Exchange Commission and the Stock Exchange

of Thailand with effect from 26 June 2000. In this regard, the Bank is listed in the “A” category with the Thai ConsultantsDatabase Center of the Ministry of Finance;

3.2 Registrar services. The Bank has been licensed by the Securities Exchange Commission and the Stock Exchangeof Thailand, to act as registrar of securities with effect from 12 May 2000;

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3.3 Mutual Funds. The Bank has been authorized by the Securities Exchange Commission and the Stock Exchange ofThailand, to provide mutual fund supervisory services with effect from 1 January 2002;

3.4 Trading in Securities. The Bank has been licensed by the Ministry of Finance, to trade in debt instruments with effectfrom 8 August 2002;

In parallel with the above, the Bank has invested varying sums of money in the 13 state-intervened financial institutions andother companies. This led to the cross-holding and interlocking of ownership between the Bank and a number of subsidiarycompanies, associate companies and related companies in the following six key business areas:

1. Trading in securities;2. Leasing;3. Business consulting;4. Life and non-life insurance;5. Custodian services; and6. Assets management and other commercial activities.

Essentially in all cases, the Bank has acquired a stake in businesses that are contributing, directly or indirectly, towardspromoting the Bank’s business, with some of the equities having been transferred to the Bank under the merger process. In thisregard, the Bank’s policy is directed at maximizing investment returns by retaining those businesses which have demonstratedstability and growth capacity. Consequently, further steps will be taken to disinvest in low priority businesses and concentrate onthose able to achieve a positive financial return on investment.

A COMPREHENSIVE ARRAY OF BANKING PRODUCTS1. Financial consulting and trading in financial products, generally defined to include fundraising through securitization,

mergers and acquisitions, listing of companies on the Stock Exchange of Thailand, registrar and paying agent services, bondholderrepresentation, custodian services, foreign exchange trading services, trading in debt instruments, and financial risk managementinstruments.

2. Domestic lending products and services, generally defined to include overdrafts, fixed loans, bill purchased/bill discounted,domestic letters of credit, avals and acceptances, and letters of guarantee.

3. International banking services include foreign currency deposits; trust receipts; packing credit; letters of credit (issuing andamending the terms); bills of lading; international remittances, travelers’ checks, etc.

4. Retail loans include personal loans, home loans and education loans.5. Domestic deposits encompass current deposits, fixed-term deposits, tax-free deposits, savings deposits, corporate

savings, and time deposits.6. Privileged banking includes personal asset management and extending special privileges to top customers by offering

them an easy and convenient access to new products and services, including investment opportunities and new deposit products.7. Electronic banking products and services include BT ATMs, BT Phone Banking, phone fund transfers, BAHTNET for

making payment to third party, and direct debit services for payment of utility and other bills by means of the ATS, etc.8. Other products and services include over-the-counter services for the payment of goods and services and others;

provident fund management; and acting as an agent for open-end funds, etc.The Bank has a network that today spans across Thailand. As at 31 December 2005, the Bank employed 2,429 staff

(excluding short-term employees) and operated from 26 Business Centers and 112 branches throughout the country.In addition, customers are provided an easy and convenient access to foreign exchange facilities at 112 branch offices and619 ATMs, of which 545 are located in greater Bangkok metropolitan area and 74 in provincial areas.

BANKTHAI PUBLIC COMPANY LIMITEDTABLE OF PROFIT

AS AT DECEMBER 31 2005 2004 (Restated) 2003

MILLION % MILLION % MILLION %

INTEREST AND DIVIDEND INCOME1.LOANS 6,232.53 62.79 5,141.66 67.29 6,986.33 78.13

1.1 BORROWINGS 3,973.95 40.04 3,484.96 45.61 3,308.98 37.011.2 OVERDRAFTS 304.95 3.07 236.01 3.09 225.35 2.521.3 BILLS DISCOUNTS 1,953.63 19.68 1,420.69 18.59 3,452.00 38.61

2.INTERBANK AND MONEY MARKET ITEMS 286.02 2.89 208.02 2.72 286.16 3.202.1 DEPOSITS 134.73 1.36 39.13 0.51 27.84 0.312.2 LOANS 71.12 0.72 90.91 1.19 126.56 1.422.3 SECURITIES PURCHASED UNDER RESALE AGREEMENT 80.17 0.81 77.98 1.02 131.76 1.47

3.SECURITIES 2,206.04 22.22 1,088.30 14.24 697.27 7.80NET INTEREST AND DIVIDEND INCOME 8,724.59 87.90 6,437.98 84.25 7,969.76 89.13

NON-INTEREST INCOME1.FEES AND CHARGES 581.90 5.87 431.10 5.64 419.22 4.691.1 ACCEPTANCES, AVAL AND GUARANTEES 120.78 1.22 93.72 1.23 74.25 0.831.2 OTHERS 461.12 4.65 337.38 4.41 344.97 3.86

2.GAINS ON EXCHANGE RATES (28.35) (0.29) 198.08 2.59 78.22 0.87

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AS AT DECEMBER 31 2005 2004 (Restated) 2003

MILLION % MILLION % MILLION %

3.OTHER INCOME 647.21 6.52 574.77 7.52 474.54 5.313.1 OTHERS 647.21 6.52 574.77 7.52 474.54 5.31

TOTAL NON-INTEREST INCOME 1,200.76 12.10 1,203.95 15.75 971.98 10.87

TOTAL INCOME 9,925.35 100.00 7,641.93 100.00 8,941.74 100.00

* 1.3 BILLS DISCOUNTS INCLUDE YIELD MAINTENANCE INCOME

The Bank’s net income increased 29.88 per cent to Baht 9,925 million in 2005, from Baht 7,642 million in 2004. In this respectnon-interest income decreased from 12.10 per cent in 2005, from 15.75 per cent in 2004. while interest and dividend income increased from87.90 per cent in 2005 to 84.25 per cent in 2004.

7. RISK FACTORSThe Bank’s business involves risk posed by both internal and external factors. Some risks are controllable while others are not.

However, all of them have the potential to impinge on the Bank’s business success and investor returns.

GAIN/LOSS SHARING AND YIELD MAINTENANCE AGREEMENTThe Bank and the FIDF signed a Gain/Loss Sharing and Yield Maintenance Agreement in accordance with the terms and

conditions approved by the Cabinet on 19 September 2000. Under the 5-year Agreement covering the period 1 January 2001to 31 December 2005, the FIDF has an obligation to compensate the Bank for losses associated with the transfer ofnon-performing loans (NPLs) to the Bank from Union Bank of Bangkok PLC and the 12 state-intervened finance companies. Asat 31 December 1999, the loans so transferred amounted to Baht 197,642 million, of which Baht 188,690 million was in loansclassified as substandard, doubtful, doubtful loss, or loss; Baht 3,020 million in margin loans retained with Thai Thanakit FinancePLC and BT Consulting Co. Ltd. (the former Thaithanakit Co. Ltd.); and Baht 5,752 million in investment in securities with netbook value higher than the market value. In addition, the Bank set aside notional provision of Baht 112,495 million for lossesunder the Agreement.

For the year ended 31 December 2005, the Bank and its subsidiaries had specific commitments and contingent liabilitiesunder the Agreement. From this perspective, the Bank runs the risk of shouldering 15 per cent of any losses that may occur asa result of the estimated irrecoverable value of assets calculated at the end of the compensation period exceeding the notionalprovision. In addition, there is a risk of the future net realizable value of the restructured debts being lower than their buy backprices (net present value) at the end of the compensation period. However, the Bank stands to receive 5 per cent of incomecollected in excess of outstanding balance after deducting the notional provision.

Given that the amount of such gains/losses could not be reasonably estimated as at 31 December 2005, the Bank and itssubsidiaries have not recognized any such future gains/losses in their accounts. However, the Bank and its subsidiaries do notanticipate any significant future losses.

THE IMPACT OF MAJOR EVENTS FOLLOWING THE ENTRY INTO FORCE OF THE AGREEMENTAs at 31 December 2005, the Bank had Baht 82,352 million in NPLs collectively classified as Covered Asset Pool (CAP),

which were transferred to the Thai Asset Management Corporation (TAMC) as required by the Emergency Decree on AssetManagement Company at a transfer price of Baht 22,393 million, with loss on transfer of the assets amounting to Baht 59,959million and suspended as receivable from the FIDF. Since the transfer of the assets to the TAMC took place after the signing ofthe Gain/Loss Sharing and Yield Maintenance Agreement with the FIDF, the impact of such transfer on the calculation of the yieldmaintenance and gain/loss sharing is not reflected in the Agreement. However, the Bank and its subsidiaries believe that the FIDFwill compensate losses associated with the NPLs so transferred in accordance with the terms and conditions of the existingAgreement. This is in compliance with the guidelines given by the Bank of Thailand to the Bank’s Management. In this respect,the appropriate method of calculation has been proposed to, and is being considered by, the Ministry of Finance.

ASSETS COLLECTIVELY CLASSIFIED AS COVERED ASSET POOL (CAP)As at 31 December 2005, CAP assets outstanding in the books of the Bank and its subsidiaries (exclusive of the portion that

was transferred to the TAMC) totaled Baht 128,341 million, with aggregate transfer price amounting to Baht 22,393. The Bankand its subsidiaries set aside allowances for doubtful CAP assets in the amount of Baht 20,054 million (comprising Baht 18,221for the Bank and Baht 1,833 million for the subsidiaries, but excluding allowance of Krung Thai Thanakit Finance Public CompanyLimited of Baht 293 million). Such provisions are recognized as losses already compensated by the FIDF. Any loss in excess ofsuch provision will be compensated for under the gain/loss sharing arrangement as outlined above.

YIELD MAINTENANCE INCOMEYield maintenance income is recognised in accordance with the conditions stipulated in the Agreement dated 1 February

2001 and its amendments dated 9 October 2002. Although the transfer of NPLs to the TAMC is not reflected in the Agreement,the Bank and its subsidiaries believe that the FIDF will compensate for losses associated with the transferred assets in accordancewith the conditions prescribed in the existing Agreement. Under the circumstances, interest income on the promissory notesissued by the TAMC for the transferred assets should be included as a deduction item in the calculation of yield maintenanceincome, taking account of the guidelines prescribed by the Bank of Thailand. In this respect, the appropriate method of calculationhas been proposed to, and is being considered by, the Ministry of Finance.

In 2005, yield maintenance income recognized by the Bank and its subsidiaries amounted to Baht 1,558 million. As at 31December 2005, the outstanding receivable amount stood at Baht 8,387 million. Notwithstanding this, the actual amount ofreceivables from the FIDF and yield maintenance income will depend on a number of factors. These include results of examinationby the FIDF, the resolution of outstanding issues, decisions taken by the Ministry of Finance on the NPLs that were transferred tothe TAMC, and additional amendments (if any) made to the Gain/Loss Sharing and Yield Maintenance Agreement. This may

85

result in a shortfall between the amount actually received and the recorded amount. However, the Bank has recognized yieldmaintenance income based on estimates premised upon certain assumptions regarding the overall outcome. Furthermore, theBank believes that the amount to be received will not differ materially from the recorded amount as the FIDF has obligations to theBank under the Gain/Loss Sharing and Yield Maintenance Agreement.

AGREEMENT TO TRANSFER NPLS TO THE TAMCOn 12 October 2001, the Bank entered into an agreement to transfer NPLs to the TAMC as required by the Emergency

Decree on Asset Management Company.As at 31 December 2005, NPLs transferred by the Bank and its subsidiaries to the TAMC and collectively classified as

Covered Assets Pool (CAP) or Non-Covered Assets Pool (NON-CAP) were as follows:(millions of Baht)

Consolidated and the Bank Only2005

Transfer Losses incurred Accounting forLoans transferred to the TAMC Book value price in the transfer losses in transfer

CAP 82,352 22,393 59,959 - Suspended as receivables from theFIDF awaiting compensation

NON-CAP 15,774 3,520 12,254 - Reduction of allowance for doubtful debtsTotal 98,126 25,913 72,213Less transfer price for which transfer notes from

the TAMC have yet to be received by the Bank(currently under examination by the TAMC toconfirm price) - (included in the 2005balance sheets as other assets) (106)

: TAMC notes which have been redeemed by the TAMC (10,642)Total of TAMC notes already received from the TAMC (included in the 2005 balance sheets as held-to-maturity debt securities) 15,165

As agreed, the TAMC will pay the Bank in the form of non-transferable, 10-year promissory notes, avaled by the FIDF. Thenotes bear interest at the average deposit rates of 5 major Thai commercial banks. The TAMC will pay interest in the form ofnon-transferable promissory notes maturing within one year from the issue date, and will reserve the right to roll-over such notesif deemed appropriate. As at 31 December 2005, interest outstanding on the notes amounted to Baht 149 million.

According to the Agreement with the TAMC, the Bank and the TAMC will apportion gains or losses associated with themanagement of NPLs by the TAMC between them. This will be determined at the end of the fifth and tenth year, beginning 1 July2001. In case of losses, the Bank will bear all initial losses up to 20 percent of the transfer price. Further losses of up to 20per cent of the transfer price will be split equally between the Bank and the TAMC. The TAMC will carry the remaining losses.In this respect, expenses incurred by the TAMC and the interest expense associated with the promissory notes issued by theTAMC will be included in the calculation of the gain/loss sharing. In case of gains, initial profits of up to 20 per cent of the transferprice will be shared equally between the Bank and the TAMC. Further gains will be taken by the Bank, provided that it does notexceed the difference between the book value of the transferred NPLs and their transfer price when combined with the initialportion. The remaining gains will be taken entirely by the TAMC.

Given that the amount of such gains/losses could not be reasonably estimated as at 31 December 2005, the Bank has notrecognized any such future gains/losses in its accounts. However, the Bank does not anticipate any significant future losses.

ABSENCE OF GUARANTEE BY THE THAI GOVERNMENTAlthough the FIDF is a state agency, the Thai Government has not guaranteed that the FIDF will honour its obligations under

the Gain/Loss Sharing and Yield Maintenance Agreement. One redeeming feature here is that compensation for lossesassociated with the NPLs is a mandate given by the Cabinet on 19 September 2000.

LOSS ASSOCIATED WITH DEBT RESTRUCTURINGFor the year ended 31 December 2005, total outstanding balance of NON-CAP assets amounted to Baht 91,614 million,

including accrued interest receivables. Of that figure, assets classified as substandard, doubtful and doubtful loss amounted toBaht 803 million, Baht 1,745 million and Baht 4,873 million respectively. The key impact here is that the Bank may take theappropriate action to restructure these assets in the future without being compensated for any loss.

In cases where troubled debt restructuring call for adjustments to the terms and conditions of repayment, the fair value ofthe loans after restructuring is determined based on the net present value of expected future cash flows, discounted by the marketinterest rate. As at 31 December 2005, losses associated with the revaluation of restructured NON-CAP assets (PV Loss)amounted to Baht 181 million, for which the Bank has set aside allowance for revaluation as a result of debt restructuring.

In addition, the ability of a debtor to comply with the debt restructuring terms and conditions can potentially result in waiverof part of the principal or interest receivables. In this regard, losses of Baht 935 million associated with the restructuring of CAPassets will be included in the calculation of gain/loss sharing under the Gain/Loss Sharing and Yield Maintenance Agreement. Tohedge against further losses from NON-CAP assets of approximately Baht 230 million, the Bank set aside a general provisionwhich is included in the balance sheet as part of the allowance for doubtful assets.

POTENTIAL RISE IN NON-PERFORMING LOANS UPON EXPIRY OF THE GAIN/LOSS SHARING AND YIELDMAINTENANCE AGREEMENT

The Bank does not recognize income earned on NON-CAP assets. However, upon expiry of the Gain/Loss Sharing and YieldMaintenance Agreement at the end of 2005, the Bank will be obliged to stop recognizing income on CAP assets whose principal

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and/or interest is more than three months delinquent, resulting in an increase of loss from irrecoverable loans. As a proactivemeasure in mitigating such risk, an all-out effort continues to be taken by the Bank to accelerate disposal of CAP loans.

As at 31 December 2005, NON-CAP loans amounted to Baht 7,011 million, compared with Baht 6,892 at 31 December2004.

REINSTATEMENT OF THE BANK AS A STATE ENTERPRISEThe warrant buyback option agreement between the Bank and the FIDF entitles the Bank to gradually buy back all of the

warrants that were issued to the FIDF, starting from the agreement date to one year prior to maturity of the warrants, namely 8 May2011. If any warrants should remain at the end of the reacquisition period, the FIDF will have the right to convert the warrants intopreferred shares, in accordance with the original terms and conditions of the warrant. The exercise of such conversion rights mayresult in the FIDF acquiring a stake greater than 50 per cent in the Bank, thereby changing the Bank into a state-run commercialbank with the FIDF remaining the largest shareholder.

IT INFRASTRUCTUREThe Bank established its own backup site with a view to hedging against disruptions to business operations caused by

unforeseen catastrophe. The Bank also has security systems in place to support BT internet banking. Recognizing the importanceof continued provision of Internet-based banking products and services the Bank set up its own backup facility to supportInternet-based operations. In addition, advanced security features have been added to enhance the Bank’s network security.

CREDIT RISKCredit risk results from the failure of the customer or counterparty to comply or intend to comply with any conditions or

agreements, or from deteriorations in credit quality, causing the Bank to incur a financial loss.The Bank’s credit policy provides for a check and balance system within the organization as well as clear lines of responsibility

between sales representatives, credit officers, auditors and those in charge of risk management. In this respect, continued focusis on containing two broad categories of credit risk, namely standalone risk and portfolio risk. The Bank uses credit risk rating toolsto measure credit risk posed by different types of customers. For example, risk grading tools have been developed and employedby the Bank since 2002 to assess potential risks posed by juristic persons. These tools have been regularly validated andrecalibrated to ensure the integrity of its internal risk assessments and approval process. The Bank also utilizes credit scoring toevaluate its retail customers for both of secured and unsecured loans such as PersonalCash, Mortgage Power and Home Loan.The credit scoring system is validated regularly. In parallel with this, the Bank’s credit policies are reviewed regularly by the RiskManagement Committee.

With a view to effectively managing risk at the portfolio level the Bank carefully assesses the trade-off between the creditquality of borrowers in each type of business and loan concentration together with its return. In addition, maximum credit limits areset. For the year ended 31 December 2005, the Bank’s loans could be classified by business sector as follows:

millions of bahtTotal NON-CAP assets

Type of business No. of borrowers Outstanding obligation No. of borrowers Outstanding obligation

Agriculture, fishery and forestry 796 1,669.49 199 585.21Banking and finance 102 6,576.35 58 3,784.41Services 1,204 13,504.06 598 10,057.28Infrastructure 189 7,544.05 111 6,515.77Mining and quarrying 27 275.80 5 102.15Manufacturing 1,435 41,787.89 858 30,657.37Commercial activities 3,505 26,271.66 1,780 16,284.16Real estate and construction 1,105 25,291.94 395 14,973.66Consumer 62,547 15,514.46 57,170 8,740.32 Total 70,910 138,435.69 61,174 91,700.34

MARKET RISKThe Bank is exposed to market risk principally through changes in interest rates, foreign exchange rates and securities prices,

which consequently cause the Bank to incur a financial loss.

INTEREST RISKThe Bank has set up an Assets and Liabilities Management Committee (ALCO) to determine the procedures for managing the

Bank’s exposures to interest rate risk posed by mismatched between interest rate and its assets and liabilities structure. Tomitigate such risk, the Bank utilizes Gap Analysis to capture the Bank’s exposure to changing interest rates. The Gap methodologyallows the Bank a quick and intuitive sense of how it is positioned by comparing the values of assets and liabilities that rollover - or reprice - at various time periods in the future. In addition, the Bank employs an income simulation model to determinehow net interest income would change as interest rates change, while the Risk Management Unit is responsible for assessing andmaintaining risk within acceptable levels. Insofar as interest rate risk in the Bank’s trading book is concerned, the Bank monitorsa daily risk status report, to determine and report on the acceptable and pre-warning levels of risk for its trading portfolio. Thisinvolves setting risk limits by risk type and product group, including assigning Value-at-Risk Limit and One Basis Point Shift(PVO1) Limit.

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FX RISKWith a view to mitigating exposure to foreign exchange rate risk, the Bank’s policy is to match liabilities denominated in a

foreign currency with assets denominated in that same currency, having, if feasible, the same maturity date. Furthermore, the Bankoffers both spot and forward foreign exchange facilities to enable customers to manage their business effectively. In this respect,appropriate limits are set for each customer. To measure pre-settlement risk, a Loan Equivalent Factor (LEF) has been definedby an independent Risk Management Unit, taking into account exchange rate fluctuations. Furthermore, risks associated with theBank’s trading activities are managed at both the dealer and portfolio levels. This involves establishing appropriate risk limits byrisk type and product group, including assigning Value-at-Risk Limit, FX Net Open Position Limit and Loss Limit. The Bank alsoemploys mark to market functionality to value gains and losses on outstanding trade on a daily basis. Furthermore, a stress testingis conducted regularly to help assess the potential effects of unforeseen catastrophe.

The Bank’s focus is on enhancing the effectiveness of its market risk management policies and practices and ensuringadherence to such policies and practices. In addition, the back-test process is conducted regularly to ensure the performanceefficiency and effectiveness of the related models and tools. Appropriate action is taken to assess the Bank’s capital adequacy inrelation to market risk as required by the Bank of Thailand.

LIQUIDITY RISKLiquidity risk occurs when the Bank’s ability to discharge its obligations is compromised by its inability to liquidate financial

assets and/or secure sufficient funds to discharge its obligations in a timely manner, resulting in a financial loss. In this respect,an all-out effort is exerted by the Bank to manage its liquidity in ways that are consistent with the underlying purposes for whichits operations are conducted, taking into account the prevailing economic conditions and the directives of the Bank of Thailand.Towards that end, the Bank has developed a contingency plan for liquidity crisis. The overall liquidity risk management is monitoredby the Assets and Liabilities Management Committee (ALCO).

In 2005, the Bank restructured both its short- and long-term fund structures by diversifying its funding sources with a view todiversifying risk, taking into account the prevailing economic conditions as well as the liquidity which is likely to stem from the Gain/Loss Sharing and Yield Maintenance Agreement at the beginning of 2006.

OPERATIONAL RISKOperational risk may arise directly or indirectly from inadequate internal processes, human error, systems, or lack of good

corporate governance, or external factors that can potentially impact directly or indirectly on the Bank’s revenue and capital.Recognizing the critical need to effectively manage operational risk, the Bank has put in place policies and practices that

not only meet international standards, but are also transparent and have the potential to foster good governance. In this respect,the Risk Management Committee is responsible for defining policies and practices in ways that are consistent with the standardisedapproach introduced by the Bank for International Settlements (BIS). Furthermore, the Bank intends to adopt the BIS-developedAdvanced Measurement Approaches in the foreseeable future.

The Bank requires executive officers in charge of operating offices to play a pivotal role in managing operational risk inways that match the Bank’s strategic goals and, at the same time, instilling a risk management culture within their respectiveoffices. In this respect, the Risk Management Division is responsible for developing models and tools that are used to identify,quantify and manage operational risk, by bringing them into line with Bank-wide operational risk policies and practices andinternational standards. In addition to the above, the Bank requires each internal unit to conduct an operational risk managementself-assessment and report the outcome regularly to the Risk Management Division. This method continues to provide a meansof collectively identifying and evaluating operational risks and self-evaluating the adequacy of controls. The outcome of theself-assessment is brought to the attention of the Risk Management Committee and used to determine corrective action and followup. This method makes it incumbent upon each internal unit and branch office to continually review the way their workingprocesses are structured and managed, thereby minimizing operational mishaps and enhancing the ability to redress the problemsin a coherent and timely manner. To complement this, focus of attention is given to provide for effective and efficient oversightthroughout the organization, including defining the necessary practices, determining clear lines of responsibility and approvalauthority, establishing checks and balances, safeguarding inside information, and preserving full continuity of business activities inways that are consistent with international standards and supportive of sound corporate governance.

In addition to the above, the Internal Audit Department and the Compliance and Credit Review Team, reporting directly tothe Audit Committee, play a supporting role in the risk management process by independently reviewing the operations throughoutthe organization.

Furthermore, the Bank has stepped up its preparednessto adopt the BIS-developed Advanced MeasurementApproaches, which call for greater use of assessments of riskas inputs to capital calculations. This includes developing andusing key risk indicators and tracking loss incidents, asprescribed by the Bank of Thailand and BIS. In addition, riskexposures are identified and documented. The intention is togather quantitative information essential for developingcomputer-assisted simulation to assist in quantifying operationalrisk more effectively.

Private business 11.33Community and consumer services 1.27Health care 1.32Education 0.59

Real Estate 16.73

Financial intermediary 4.79

Transport and communications 5.49

Hotels and restaurants 3.19

Agriculture 0.85Fisheries 0.24

Manufacturing 29.16

Electricity, gas and water 0.61Construction 4.25Wholesale and retail 19.97

Mining and quarrying 0.21

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LEGAL ASPECTAt 31 December 2005, there was a probability that pending litigation against the Bank might have an effect on the assets of

the Bank in excess of 5 per cent of shareholders’ equity. Part of the debt is owed directly by the Bank while the rest wastransferred from First City Investment Public Company Limited. In this respect, the Government Savings Bank launched civil courtproceedings against five financial institutions for having acted as guarantors of a loan provided by the Government Savings Bankto Don Muang Tollway Public Company Limited, with the Bank acting as one of the guarantors. Consequently, Civil Case BlackNo. TorTong 947/47 was brought to trial on 30 March 2004, claiming for a total of Baht 450,000,000 in damages. The figurewas subsequently increased by the Government Savings Bank to Baht 451,109,598.04. In the first instance, the Court deemedthe suit to be an ordinary case and reassigned it Civil Case Black No. TorTong 2171/47. The Court also decided to consolidatethe five cases forming a group of five, with the Bank as the second defendant. At the hearing, held on 26 May 2005, the Courtlistened to the testimony of the plaintiff and the five co-defendants, and concluded that the disputed issues at hand were asfollows:

1. Has the plaintiff presented sufficient evidence to create a triable issue of fact?2. Does the plaintiff have the right to file a lawsuit against the five co-defendants?3. Should the five co-defendants be adjudged liable?The next hearing is scheduled for 6 July 2006 from 0900-1630 hours. Given the lawsuit trend, it is likely that the Court will

dismiss the case. However, if the court should rule in favour of the plaintiff, the Bank’s liability will not exceed Baht 510.38 million(based on an interest rate of 7.5 per cent per annum). Under the circumstances, the Management does not expect the outcometo impinge significantly on the Bank’s financial position.

8. CORPORATE GOVERNANCECORPORATE GOVERNANCE POLICIES AND PRACTICESThe Bank has consistently placed great importance on the governance of the Bank which is vital to sustaining a long-run

development drive, while contributing towards strengthening the Bank’s competitive positioning, maximizing shareholder value andenhancing investor confidence both at home and abroad. From this standpoint, the Board of Directors continues to focus policyattention on promoting sound corporate governance throughout the organization, with special consideration given to fostering aculture of accountability and transparency and ensuring credibility of management. Major efforts are made to promote full, fair,accurate, timely and understandable disclosure and in particular, to safeguard the interests of the Bank and its shareholders, whileensuring that the conduct of the Bank’s business and affairs is based on the commitment to high ethical standards as well asresponsibility to the stakeholders and society. In this context, policy requires the protection of inside information and customerprivacy as well as resolution of customer complaints in an effective and timely manner.

Effective oversight services are a high priority for the Bank and a crucial ingredient in the Board’s efforts to enhance operationalefficiency and performance while ensuring that risk management arrangements appropriate to the Bank’s activities are firmly inplace. In this process, the Internal Audit Department is responsible for ensuring that the Bank conducts its business operations andaffairs in compliance with applicable laws as well as statutory rules and regulations.

Furthermore, priority attention is given to educate and increase awareness among the Bank’s Senior Management andemployees of the Code of Business Ethics, as well as applicable laws and statutory rules and regulations, including disciplinaryactions.

The Bank has prepared the Bank’s Corporate Governance Guidelines which provide a detailed framework for governance ofthe Bank. The Guidelines apply to the Board of Directors, Senior Management and staff as well as suppliers, and are designed toengender trust with investors and other stakeholders as well as enhance accountability. In this respect, at the 2/2004 meetingof the Board of Directors, held on 28 February 2004, the Board endorsed the above Guidelines and resolved that the Guidelinesshould be reviewed at appropriate intervals to ensure their continued relevance and effectiveness. In this process, it is incumbentupon staff to familiarize themselves with, and adhere to, the Guidelines.

CORPORATE GOVERMANCE HIGHLIGHTS OF 2005THE PRINCIPLE OF FAIR AND EQUAL TREATMENT OF SHAREHOLDERS

The Bank fully subscribes to the principle of equal treatment of shareholders and regularly informs them about the developmentof the Bank, with the Board assuming direct responsibility for calling shareholders’ meetings.

ë Equal treatment of shareholders- The notice of shareholder meeting is sent to all registered shareholders with the right to participate in the meeting.- In the election of the Board of Directors, each shareholder is entitled to cast the same number of votes as the number

of shares owned, with all shares carrying equal voting rights.ë Meeting procedures made simple

- Shareholders’ meetings are convened in accordance with standard procedures.- The registration counter is set up in a visible manner with staff assigned to facilitate registration and attendance.- Shareholders not wishing to attend the meeting in person can give instructions to a proxy. In order to facilitate the

appointment of a proxy, the notice of the meeting is normally accompanied by a proxy form with an explanation of thevoting process. Shareholders are also entitled to appoint an independent director to act as proxy.

- The notice of meeting provides a list of credentials required for verifying their entitlement to attend the meeting.- Shareholders attending the meeting are provided with appropriate stationery such as pens and pencils.

ë Suitability of venue and costs- The Bank prepares a route map which is sent to shareholders together with the notice of meeting.- The Bank’s main conference room normally serves as the venue for shareholders’ meetings.

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- Refreshments and snacks are provided to attending shareholders.- A memento of nominal value is presented to attending shareholders.

RIGHTS AND ENTITLEMENTS OF STAKEHOLDERSë As prescribed by law, the Board has consistently placed importance on preserving the rights of, and engendering trust

among, stakeholders such as customers, investors, employees, recruits, suppliers and the competent authorities, byadhering to the following set of principles:- Fair and equitable treatment of all employees.- Fair and open business activities and fairness in all business dealings, including when taking deposits and extending

loans.- Complaints commitment. Currently, all complaints are channeled to the Electronic Banking Service Department which

is responsible for maintaining a database of customer complaints, including classifying them according to source andtype. The information is subsequently forwarded to the Office of the President, Internal Audit Department and otheroffices responsible for resolving complaints in a collective, coherent and coordinated manner.

- Environment and social responsibility. The activities generally include charity concerts, annual Kathin offerings, anddonations and contributions both in cash and in kind for sponsoring needy children to a better life.

ë Voting rights. Shareholder with a material personal interest in a matter being considered by the meeting shall not permittedto vote on the matter, but shall be eligible to participate in the election of board of directors.

MEETINGS OF SHAREHOLDERSë The Board shall convene the annual general meeting of shareholders within four months from the end of fiscal year. Other

ad hoc meetings of shareholders shall be classified as extraordinary meetings, and shall be called by the Board wheneverdeemed necessary. In 2005, only the annual general meeting was held.

ë The Board shall oversee the preparation of the notice of meeting to incorporate essential information such as venue, dateand time, as well as an agenda. The agenda shall clearly indicate the issues to be put forward to the meeting forinformation, approval or consideration. It shall also include the opinions of members of the Board on such issues, asfollows:- The agendaë The agenda shall provide detailed information on the items to be discussed.ë The agenda shall provide a justification for inclusion of such items on the agenda as well as the positive and negative

impact of such move.ë The agenda shall contain the opinions of members of the Board on such items.- Election of directorsë The personal details of nominees, including name, age, qualifications and experience shall be provided to the

shareholders, either in a supplementary note or included in the annual report.ë The Bank shall disclose full details of the nominee’s material relationship with the Bank either directly or as a

shareholder or an executive officer of an organization that has dealings with the Bank.ë Shareholders shall be apprised of the nature and purpose of the election, that is, whether they shall be electing a new

director or successor(s) to fill vacant position(s) on the Board.ë Shareholders shall be advised as to whether the elected directors shall have signature authority.- Item relating to remuneration arrangements for the Board of Directorsë Shareholders shall be provided with full details of remuneration packages.ë Shareholders shall be apprised of the factors that have been taken into account in determining such remuneration

packages, including the details of remuneration packages from the previous year and those of other entitles within thecomparable peer group.

- Item related to the appointment of auditorë Shareholders shall be provided with the auditor’s personal name and company name, including the proposed fee.ë In the event of a reappointment, details of the auditor’s previous appointment shall be provided. If a new appointment,

then reasons for change shall be given. In 2005, the Bank proposed reappointment of the auditor.In accordance with the minimum time limit prescribed by law, the notice of meeting shall be sent to the shareholders and the

Registrar at least seven days before the meeting. The notice shall also be published in the newspaper on three consecutive daysat least three days before the meeting.

ë The Chairperson of the general meeting of shareholders shall conduct the meeting in accordance with established rules ofprocedure and the agenda.

ë The Chairperson shall summarize the discussions under each agenda item while ascertaining that shareholders are givenleave to speak or raise questions on the issues under discussion. The Chairperson shall also explain voting procedures tothe meeting, including voting and counting rules before voting starts. Voting on each item must be completed before movingon to the next item of business.

ë Registration counter shall be open at least one hour before the start of the meeting.ë Members of the Board and its Committees shall attend shareholders’ meeting, to be available to clarify issues or respond

to queries raised by the shareholders except when called away on urgent business.ë Minutes of the meeting shall be prepared in an accurate and comprehensive manner, encapsulating: (a) questions and

answers, (b) issues observed by the meeting; (c) voting results showing the number of votes cast for or against themotion, including absentees. As prescribed by law, the minutes shall be submitted to the supervisory and regulatory bodieswithin 14 days after the meeting, with a copy kept at the Office of the President for audit and reference purposes.

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ORGANIZATION CHARTBankThai Public Company LimitedAs at 31 December 2005

91919191

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The Bank’s management structure consists of:1. Board of Directors;2. Board Committees, namely, Audit, Management, Remuneration, Risk Management, Sale of Non-Performing Assets, and

Credit Committee Levels 2-5.3. Senior Management.

The details are presented below.

BOARD OF DIRECTORSCOMPOSITION AND COUNTERBALANCING OF POWER AND INFLUENCE

As endorsed by the meeting of shareholders, the Board comprises executive directors, outside directors, independent directorsand directors elected by a plurality of shareholder votes. In this respect, the Bank aims for balance of composition of the Board andensures suitability of appointment so as to pre-empt any one individual or a group of individuals from having unfettered power ofdecision-making, while enabling all the directors to exercise objective independent judgment on the Bank’s business and affairs.

In accordance with the Bank Charter, the Board currently has 10 members, comprising one executive director and 9non-executive directors. Of the 9 non-executive directors, 3 are independent directors who simultaneously serve on the AuditCommittee. The remaining 6 non-executive directors are eminent persons appointed by the competent authorities such as theBank of Thailand, or represent significant shareholdings. By virtue of the Commercial Banking Act, the decision rendered by theBank of Thailand on this matter is tantamount to a decision taken at a shareholders’ meeting.

DEFINITIONSA non-executive director shall not hold any other position in the Bank other than being a director, but may or may not be an

independent director.An executive director shall form part of the executive management team and receives a regular salary.A director with signature authority shall have the authority to execute binding contracts on behalf of the Bank. The terms and

scope of the signature authority are given in the letter of authority which is open for public inspection.A director without signature authority shall not have the authority to execute binding contracts on behalf of the Bank.The Bank has set forth specific requirements for the qualification of an independent non-executive director as follows:

an independent director shall be an outside party elected to serve on the Board.ë if a shareholder, an independent director shall not hold more than 5 per cent of the Bank’s shares and equal voting rights,

including those of its subsidiaries, affiliates and related parties, or associated with any other parties having the potential toraise conflict of interest issues such as those included under Article 258 of the Securities and Stock Exchange Act BE2535 (AD 1992).

ë an independent director shall not form part of the executive management team of the Bank or its subsidiaries, affiliates orrelated parties, or associated with any other parties or substantial shareholders or any persons in a position to control theBank. Furthermore, an independent director shall not be an employee or advisor who receives a regular salary from theBank or its subsidiaries, affiliates or related parties, and shall not be influenced by the substantial shareholders or any otherparties or persons with whom the Bank has a significant relationship. In addition, an independent director shall notrepresent a potential conflict of interest. A director who is associated with any parties or persons providing professionalservice to the Bank or its subsidiaries such as an auditor or a lawyer shall not be considered to be independent until oneyear after the end of such employment relationship.

ë an independent director shall have no material relationship either directly or indirectly with the Bank or its subsidiaries,affiliates, substantial shareholders or any other related parties or persons that have the potential to give raise conflict ofinterest issues. Consequently, an independent director shall not be a customer, a supplier, a creditor, or a debtor, etc., ofthe parties listed above as it may interfere with the exercise of independent judgment in carrying out the responsibilities ofa director.

ë a director who has material relationship with, or is a family member of, the Bank’s executives, substantial shareholders,subsidiaries, affiliates, related parties or any other parties or persons shall not be considered independent.

ë an independent director shall not represent the interest of board directors or substantial shareholders or any othershareholders who are associated with substantial shareholders.

ë the need to act with integrity and impartiality at all times requires that an independent director be free to carry out the tasksdelegated by the Board and to monitor the executive activity, independent of senior management and substantialshareholders or any other parties or persons who are associated or related with the parties concerned.

SEPARATE POSITIONS OF CHAIRMAN AND PRESIDENTThe Bank’s Corporate Governance Guidelines stipulate that the chairman of the board cannot simultaneously serve as

president. This clear division of responsibility between the Chairman and President continues to have a crucial role to play indecision-making, governance and management processes, by helping to ensure that no one individual has unfettered powers ofdecision-making, while enabling the President to carry out his work independently from management.

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COMPOSITION OF THE BOARDAs at 31 December 2005, membership of the Board consisted of the following: Name Official Title1. Mr. Tawee Butsuntorn Chairman2. Mr. Phirasilp Subhapholsiri President3. Dr. Piboon Limprapat Independent Director4. Dr. Sarasin Viraphol Independent Director5. Dr. Dharin Divari Independent Director6. Mr. Pongpanu Svetarundra Director7. Mr. Preecha OonChitti Director8. Mr. Techapit Sangsingkeo Director9. Mrs.Saowanee Suwannacheep Director10.Mr. Luen Krisnakri DirectorMr. Pramon Sutivong Adviser to the Board of DirectorsMr. Thaphop Kleesuwan Secretary to the Board of Directors

SIGNATURE AUTHORITYAs at 31 December 2005, Directors with signature were as follows:1. Mr. Tawee Butsuntorn Chairman2. Mr. Phirasilph Subhapholsiri President3. Mr. Pongpanu Svetarundra Director4. Mr. Preecha OonChitti Director5. Mr. Luen Krisnakri DirectorAny two directors are authorized to countersign and affix the Bank’s common seal to any document.

The letter of authority filed with the Ministry of Commerce stipulates that Mr. Tawee Butsuntorn, Director (serving asChairman), has the authority to sign binding contracts on behalf of the Bank. However, Mr. Tawee Butsuntorn is not a directorresponsible for signing binding contracts arising out of the normal business operations and is, therefore, able to provide anindependent oversight of management.

LEADERSHIP AND VISIONThe Board consists of individuals of varying age and from a variety of backgrounds who bring together a wide range of skills

and experience to benefit the Bank. Board members have a reputation for ethical conduct and are willing to devote sufficient timeto carry out their duties and responsibilities. The role and functions of the Board, including the criteria for director appointments andremovals are set out in the Bank Charter and Corporate Governance Guidelines. The Board has an insight into the Bank and itsoperations and is deeply committed to provide continuing insight and clarity into the Bank’s governance process. The Board actsas advisor and counsellor to senior management and monitors the performance of management in meeting the agreed goals andobjectives.

POWERS OF THE BOARD1. Appoint and dismiss employees or recruits; determine the levels of salary and benefits of employees, recruits or any other

persons having material relationship with the Bank; and declare dividends at appropriate times.2. Establish as many committees as the Board deems necessary to assist in its function, including determining the appropriate

remuneration.3. Appoint advisers to assist the Board in the conduct of the Bank’s business and affairs, including determining the appropriate

remuneration.4. Delegate certain functions and powers of the Board to one or more directors or any other parties or persons, including

abolishing or reassigning the powers and functions as deemed appropriate.5. At board meetings, each director shall be entitled to cast one vote. In this process, directors shall be required to strictly adhere

to the constraints of their participation and voting in relation to matters in which they have an interest. In the event of a votetie, the Chairman of the Board shall have the deciding vote.

ROLE AND RESPONSIBILITIES OF THE BOARDThe Board performs a number of specific tasks as described below:

ë In working towards the goals and objectives of the Bank, the Board operates in a manner reflecting the Bank’s core values oftrust, honesty and integrity, and in compliance with law and regulations, as well as the Bank Charter and resolutions adoptedby the shareholders. In this process, the Board is required to exercise objective independent judgment on the Bank’s businessand affairs and to act with a view to the best interests of the Bank and its shareholders. Major strategic initiatives and significantcapital investments are brought to the Board’s attention either for review and approval or for onward submission to theshareholders with recommendation for approval, as appropriate.In pursuing the goals and objectives of the Bank, the Board follows a set of principles as described below.- Optimal performance encompasses:

1) being absolutely honest in all professional activities in the Bank’s best interests;2) taking a prudent approach to decision-making;3) making decisions in good faith without personal influences.

- Prudence encompasses:1) reacting to problems in a manner that serves the best interests of the Bank;2) making and implementing well-informed decisions;3) ensuring the accuracy and reliability of information used in decision-making.

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- Integrity encompasses:1) ensuring that objective of action is legitimate;2) making decisions that are not affected by conflict of interest except when the decision is made by a neutral party and

in the Bank’s best interests;3) refraining from willful misuse of information and positions for personal gain.

ë Define future directions, vision, policies and strategies pertaining to the Bank’s management; promote responsible administration of resources; determine the required standards of corporate performance and governance; and ensure effectiveimplementation of policy objectives and strategy.

ë Recommend to the shareholders suitable nominees for election to the Board and encourage the shareholders to nominatecandidates to stand for election.

ë Select qualified individuals for appointment to senior management positions.ë Review and approve, with senior management, the Bank’s operating budget.ë Delegate appropriate authority to senior management and review and approve major strategic initiatives and significant capital

investments to ensure that the Bank’s proposed actions accord with shareholder objectives. If the initiative should require theapproval of the meeting of shareholders, the Board shall be responsible for submitting it to the shareholders for considerationand providing its independent opinion on the same.

ë Identify issues of interest to the Board and require senior management to bring those issues to its attention.ë Set out the standards to be followed by senior management in the discharge of its duties against the Bank’s objectives and

strategy, and require senior management to regularly communicate those objectives and strategy to the staff at all levels.ë Ensure that senior management put in place processes for maintaining the integrity of compliance with applicable laws and

statutory rules and regulations.ë Establish systems of risk management by approving and regularly reviewing risk management policies and procedures.ë Ensure that appropriate internal controls to enhance corporate governance of the Bank are in place; formulate and implement

a well-defined conflict of interest policy; put in place policies and processes for prohibiting senior management and otherconcerned parties from unauthorized access to information for the purposes of personal gain; and assess and provideassurance on the effectiveness of the Bank’s internal control systems at the end of every year.

ë Establish a judicious balance between stakeholders’ interests and ensure equitable treatment of all stakeholders.ë Assume responsibility for the financial statements of the Bank and its subsidiaries and in that process, ensure that notes to the

financial statements contain all the important disclosures. The Board shall also ensure that processes are in place forimplementing a sound accounting system and for storing the relevant data and information should the need for re-checking foraccuracy of such data and information arise. This helps the Board monitor senior management’s performance against theBank’s set objectives and strategy while enabling shareholders to keep abreast with the work of the Bank.

ë Ensure that processes are place for reporting the results of, and developments in, the business operations of the Bank againstthe set objectives, including the obstacles encountered, with a view to enabling the Board to regularly monitor and adjust itspolicy responses.

ë Define procedures for the appraisal of senior management’s performance to provide the basis for determining theappropriate amount of remuneration, with consideration given to the risks and responsibilities involved as well as the need toproduce long-term value for shareholders.

ë Review the pay structure and the criteria for authorizing bonuses, incentives and benefits for permanent, temporal, seasonal orpart-time employees, recruits or any other parties or persons supplying services to the Bank.

ë Appoint advisers to the Board or seek professional advice, at the expense of the Bank, to assist it in carrying out its duties, anddetermine the appropriate amount of remuneration.

ë Establish and empower as many Board committees as necessary to assist in its functions, including determining remunerationfor committee members. The committees shall, in turn, be entitled to hire specialized experts as well as engage regular staffto provide logistics support at the expense of the Bank.

ë Ensure that information is disclosed into the public domain in an accurate, consistent and timely manner.ë Appoint the Secretary to the Board to assist the Board in managing its business and affairs, by requiring the party concerned

to ascertain that the Board and the Bank conduct their business and affairs in compliance with applicable laws and statutoryrules and regulations.

ë Put in place corporate governance guidelines and a code of business ethics, including board and committee charters as wellas policies governing human resources management, to provide oversight and direction throughout the organization, includingreviewing them, at the appropriate times, with a view to ensuring their continued relevance and effectiveness.

ë Conduct an annual self-evaluation.

SELECTION, APPOINTMENT AND REMOVAL OF DIRECTORS

ë The Board of Directors shall be elected by the shareholders.ë The Board shall identify and recommend to the shareholders qualified individuals for election to the Board, including providing

the shareholders with personal details such as academic qualifications and experience of the parties concerned. In respect ofcandidates who are eligible for re-election at the expiry of their term, the shareholders shall be provided with informationconcerning the frequency of their attendance at board meetings as well as their participation on board committee(s).

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ë The Bank shall encourage the shareholders to nominate candidates to stand for election to the Board by facilitating suchnomination.

ë The Bank Charter provides that the regular term of office of a director shall be three years. At each annual general meeting ofshareholders, one-third of directors shall retire from office. In this process, the Public Company Act sets forth the votingprocedures, stipulating that candidates shall be elected by a plurality of shareholder votes, in descending order, in accordancewith the number of places to be filled. If the number of candidates obtaining the next largest number of votes is more than thenumber of places to be filled, the meeting shall decide between the candidates by drawing lots in a manner determined by thechairperson of the meeting.

ë In the election of the Board, each shareholder shall be entitled to cast the same number of votes as the number of sharesowned, with all shares carrying equal voting rights.

ë Shareholders shall have the right to call for the removal of Board member(s) provided that the motion is supported bythree-quarters of the attending shareholders with voting rights.

ë The Bank Charter provides that shareholders shall have an equal right to appoint or remove board members, withoutexceptions or special privileges attached, with all shares carrying equal voting rights. In this process, the shareholders shalldistribute their votes proportionately among the candidates.

ë In addition to board appointment and removal as prescribed in the Bank Charter and Corporate Governance Guidelines, theCommercial Banking Act confers on the Bank of Thailand the right to instruct a commercial bank to remove any of its directorfrom the board or to dismiss any persons involved in the Bank’s business and affairs for damaging the public interest, or failingto comply with the directives prescribed by the Bank of Thailand. In this instance, the Bank shall identify and recommend tothe Bank of Thailand a qualified replacement for appointment. The decision rendered by the Bank of Thailand to appoint ordismiss board director(s) or any other persons shall be tantamount to a resolution passed at a shareholders’ meeting.

DELEGATION OF AUTHORITYAt its 11/2543 and 12/2000 meetings held on 19 May 2000 and 25 May 2000 respectively, with two independent

directors present, the Board resolved to define approval authority in terms of types of transactions - general or department-specific. In doing so, the Board delegated authority to the President to take the appropriate action or re-delegate this authority toany person or group of persons, as he sees fit. This policy move is designed to decentralize the powers of the Board to seniormanagement for the purpose of enhancing the performance and effectiveness of the Bank’s management team, while ensuringthat internal control is embedded within the overall business processes by which the Bank pursues its overriding goals andstrategies.

Furthermore, the Board, at its 21/2000 meeting held on 22 and 23 December 2000, with all three independentdirectors present, authorized the Bank to put in place a well-defined regulation concerning delegation of authority relating totransactions that have the potential to raise conflict of interest issues. The regulation stipulates that, “the parties having delegatedauthority shall not carry out or approve any transaction in which they have a material interest or can potentially raise conflict ofinterest issues with the Bank or its subsidiaries”.

In addition to the above, the Board has established a clear division of responsibilities between the various Committees,including the Audit Committee, Remuneration Committee, and senior management.

MEETINGS OF THE BOARDë The Board shall meet at least once a month and shall schedule the meetings one year in advance, with a view to enabling

directors and senior management to commit time necessary for ensuring their participation.ë The quorum for transacting business at any board meeting shall consist of more than half of board members. Decisions taken

by the Board shall be by a majority vote.ë The Board shall allow sufficient time for discussing matters that are presented for its consideration.ë The Board shall establish the agenda for each board meeting. Board members are provided with written materials on matters

to be presented for consideration that are concise and informative, including all the applicable laws and statutory rules andregulations. The agenda shall customarily feature a progress report on the implementation of activities. The agenda andwritten materials shall be provided to Board members at least 7 days before the meeting.In 2005 the Board held 16 meetings. Attendance of Directors at board meetings are presented below:

Name Official Title Frequency of board Length of officemeetings and attendance * (as of end 2005)

1. Mr. Tawee Butsuntorn Chairman 16/16 1 year and 10 months2. Mr. Phirasilp Subhapholsiri President 16/16 7 yeas and 4 months3. Dr. Piboon Limprapat Independent Director 16/16 6 yeas and 8 months4. Mr. Sarasin Viraphol Independent Director 16/16 6 years and 6 months5. Dr. Dharin Divari Independent Director 15/16 5 years and 6 months6. Mr. Pongpanu Svetarundra Director 11/16 5 years and 2 months7. Mr. Preecha OonChitti Director 16/16 3 years and 3 months8. Mr. Techapit Sangsingkeo (1) Director 8/16 7 months9. Mrs.Saowanee Suwannacheep(2) Director 9/16 7 months10. Mr. Luen Krisnakri (3) Director 4/16 3 months11. Mr. Somboon Chitphentom (4) Director 7/16 4 yeas and 5 months12. Mrs.Nopamart Manoleehagul (5) Director 7/16 3 yeas and 8 months13. Dr. Somchai Ruchuphand (6) Director 3/16 3 months and 22 days* Showing frequency of board meetings and attendance of individual board member from the beginning of 2005, or since assumption of office, as thecase may be.

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(1) Mr. Techapit Sangsingkeo appointed to the Board effective 1 June 2005.(2) Mrs. Saowanee Suwannacheep appointed to the Board effective 1 June 2005.(3) Mr. Luen Krisnakri appointed to the Board effective 1 October 2005.(4) Mr. Somboon Chitphentom retired from the Board effective 1 June 2005.(5) Mrs. Nopamart Manoleehagul retired from the Board effective 1 June 2005.(6) Dr. Somchai Ruchuphand retired from the Board effective 1 August 2005.

REPORT FROM THE BOARDThe Board arranges for the preparation of a report which presents fairly, in all material respects, the financial position and

operating performance of the Bank during the year reported on, including drawing a comparison against the previous year. TheBoard is also responsible for the financial statements of the Bank and its subsidiaries, including notes to the financial statementsand other financial disclosures in the annual report. The financial statements have been prepared in conformity with accountingprinciples generally accepted in Thailand and internationally recognized, as well as suitable accounting policies, consistentlyapplied and supported by prudent judgment. The relevant information is included in the statement of the responsibilities of theBoard in relation to the financial statements which has been prepared simultaneously with the report of the certified publicaccountant. The 2005 annual report containing all the above information has been dispatched to the shareholders, together withnotice of the 2005 annual general meeting of shareholders.

COMMITTEES OF THE BOARDThe Board has established and empowered the following six standing committees to assist in monitoring and overseeing the

Bank’s business and affairs within a framework of prudent and effective internal control:1. Audit Committee2. Management Committee3. Remuneration Committee4. Risk Management Committee5. Committee on Management of Assets Pending Sale6. Credit Committee Levels 2-5

THE AUDIT COMMITTEEThe Audit Committee was established through the decisions taken by the Board at its 8/1999 meeting held on May 27 1999

and its 9/1999 meeting held on 29 June 1999, and by the Extraordinary Meeting of Shareholders at its 1/2000 session heldon 21 July 2000. The Audit Committee serves a two-year term.

The Audit Committee comprises the following independent non-executive directors: Name Official Title

1. Dr. Piboon Limprapat Chairman2. Dr. Sarasin Viraphol Member3. Mr. Dharin Divari MemberSecretary to the Audit CommitteeMr. Suthanai Prasertsan Senior Vice President, Internal Audit Department

PURPOSES AND RESPONSIBILITIES

The Audit Committee consists entirely of independent non-executive directors and reports directly to the Board. The purposesand responsibilities as set out in its charter include:

1. Ensure that the Bank has in place an adequate system of internal control and that management remains committed to thehighest standards of corporate governance in a manner prescribed by the Board.

2. Ensure that processes are in place for maintaining integrity of the Bank’s financial statements and financial disclosures,including related party disclosures as well as those that represent potential for conflict of interest.

3. Monitor compliance with legal and regulatory requirements, including the Bank Charter.4. Review the effectiveness of the Bank’s system of internal control with focus on producing long-term value to the Bank.5. Evaluate and monitor the systems of risk management implemented through the existing corporate governance structure;

and provide loan review as required by the Bank of Thailand.6. Review and approve the audit plan and annual budget for the Internal Audit Department and Compliance and Credit Review

Team, taking into account the changing situation.7. Review financial statements and recommend to the Board and the shareholders the appointment of the certified public

accountant, including the remuneration.8. Review the internal audit report, including the issues observed and recommendations made by internal auditors, examiners

from the Bank of Thailand, certified public accountants and other competent authorities; and ensure that tangible steps aretaken to address the recommendations made.

9. Prepare the report of the Audit Committee and arrange for it to be signed by the Committee Chairman for inclusion into theannual report.

10.Perform any other duties as may be required by the Board.

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MANAGEMENT COMMITTEEWith a view to enhancing the Bank’s effectiveness by allowing a greater focus on management issues, the Board set up the

Management Committee to help define and lay down policies and practices, address problems and issues that could not beresolved at the departmental level, and ensure that tangible steps are taken to implement policies and objectives in a timelymanner.

As at 31 December 2005, the membership of the Management Committee consisted of the following members:1. Mr. Phirasilp Subhapholsiri President Chairman2. Mrs.Duangphorn Sucharittanuwat Senior Executive Vice President, Corporate Banking Group I Member3. Mr. Surin Premamornkit Senior Executive Vice President, Corporate Banking Group II Member4. Mr. Chamnarn Wangtal Senior Executive Vice President, Institutional Banking Group Member5. Mr. Manit Jeeradit Senior Executive Vice President, Member

Risk Management and Staff Credit Group6. Mr. Ekajai Tivutanond Senior Executive Vice President, Business Support Group Member7. Mr. Surachai Chitratsenee Senior Executive Vice President, Retail Banking Group Member8. Mr. Phongsuree Bunnag Executive Vice President, Human Resources Management Division Member9. Mr. Prasert Wangrattanapranee Executive Vice President, Financial Control Division Member10. Miss Uthaiwan Anuchitanukul First Vice President, Planning Office Member11. Mr. Thaphop Kleesuwan Senior Vice President, Office of the President Secretary12. Mr.Tanit Onnuch Section Head, Office of the President Assistant Secretary

REMUNERATION COMMITTEEThe approach of the Remuneration Committee is to set remuneration including the conditions of employment to reflect

adequately the relevant labour market supply and demand factors, in accordance with the Bank’s policies, as well as to ensure thatprocesses are in place to identify and appoint qualified individuals for senior management positions.

The Remuneration and Nomination Committee consists of the following members:1. Mr. Tawee Butsuntorn Chairman Chairman2. Mr. Preecha OonChitti Director Member3. Mr. Luen Krisnakri Director Member4. Mr. Phongsuree Bunnag Executive Vice President, Member

Human Resources Management Division

PURPOSES AND RESPONSIBILITIES1. Evaluate and determine remuneration policy and practice to reflect adequately the relevant labour market supply and

demand factors.2. Examine the processes that have been put in place for setting remuneration in the commercial banking sector to take

account of the salary comparisons in so far as these bear upon the competitiveness of the Bank.3. Review and approve:

3.1 improvements in remuneration policy and practice, taking account of the supply and demand conditions prevailing inthe market;

3.2 policies and practices governing salary adjustments and annual performance-based bonus programme;3.3 Voluntary early retirement scheme, including compensation and benefits.

4. Evaluate remuneration and employment practices or approaches for the Bank’s subsidiaries.5. Identify and recommend to the Board the appointment of vice presidents and above.

ROLE OF THE COMMITTEE SECRETARY1. Schedule meetings and prepare the agenda;2. Prepare background materials;3. Conduct the meeting in accordance with the agenda;4. Prepare minutes of the meeting;5. Disseminate decisions reached at the meeting to appropriate parties.

SCHEDULE OF MEETINGSThe Remuneration and Nomination Committee meets once every quarter within the first month of the quarter and determine the

issues to be put to its consideration in advance. These meetings are separate from board meetings.In the event of urgent business, the Secretary shall bring the matter to the attention of the Chairperson of the Committee so that

a special meeting can be called.In case the agenda for the quarterly meeting of the Remuneration and Nomination Committee is not made available by the

Committee or its secretary, the Secretary to the Board shall bring this to the attention of the Chairman and the Board in writing.Where relevant, the Committee shall commission external advice or invites the concerned parties to attend its meeting, to

assist in the discharge of its duties assigned to it by the Board.

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RISK MANAGEMENT COMMITTEEThe Board established the Risk Management Committee (RMC) to assume responsibility for evaluating and determining risk

management policies and practices.ë Membership of the Risk Management Committee consists of the following:1. Mr. Phirasilp Subhapholsiri President Chairman2. Mr. Manit Jeeradit Senior Executive Vice President, Member

Risk Management and Staff Credit Group3. Mr. Chamnarn Wangtal Senior Executive Vice President, Institutional Banking Group Member4. Mrs.Duangphorn Sucharittanuwat Senior Executive Vice President, Corporate Banking Group I Member5. Mr. Surin Premamornkit Senior Executive Vice President, Corporate Banking Group II Member6. Mr. Ekachai Tivutanond Senior Executive Vice President, Business Support Group Member7. Mr. Surachai Chitratsenee Senior Executive Vice President, Retail Banking Group Member8. Mr. Prasert Wangrattanapranee First Executive Vice President, Financial Control Division Member9. Mr. Somsak Chaiyadej Senior Vice President, Risk Management Division Secretary

QUORUMë The quorum for transacting business at any Committee meeting shall consist of the chairperson and four members.ë In the absence of the chairperson, one of the remaining members shall serve as chairperson of the meeting, with four other

members being required for a quorum.

PURPOSES AND RESPONSIBILITIES- Determine and evaluate credit risk management process, including reviewing and endorsing changes to the credit policy

handbook and the criteria for granting waivers or exceptions, as well as endorsing measures and tools for quantifying creditrisk, including the Loan Pricing Methodology.

- Determine and evaluate portfolio management process, including setting credit concentration limits and targets for RAROC,ROA and ROE, and approving the purchase or sale of assets in order to adjust risk/return characteristics to keep RAROCtargets on track.

- Determine and evaluate operational risk management process, including approving the standard work plan and resourcesrequired for mitigating operational risk; review and approve contingency plans for the different departments; and endorseand fine tune business strategies to promote both new and existing products.

- Determine and evaluate capital allocation and capital adequacy processes.- Determine and evaluate loan-loss provisions and adequacy of reserves.- Determine the value at risk arising from new products launched by the Trading Team; and review and approve other limits

designed to manage market risk.

COMMITTEE ON THE SALE OF NON-PERFORMING ASSETSThe Board established the Committee on Management of Assets Pending Sale which consists of the following members:1. Mr. Tawee Butsuntorn Chairman Chairman2. Mr. Techapit Sangsingkeo Director Vice Chairman3. Mr. Ekachai Tivutanond Senior Executive Vice President, Business Support Group Member4. Mr. Songwud Buakhem Executive Vice President, Asset Management Division Member5. Mr. Paraadorn Phakaphat Executive Vice President, Legal Division Member6. Mr. Somkeart Srisuwan Senior Vice President, Network Member

and Office Management Department7. Mr. Suchart Chansongsang Senior Vice President, Credit Administration Department Member8. Miss Pensri Phabhapote Senior Vice President, Member

Financial Accounting and Budgeting Department9. Mr. Thaphop Kleesuwan (Acting) Team Leader, Member

Non-Performing Assets Sales Team10. Mrs. Saowanee Siriveshavaravudh Administrative Officer, Non-Performing Assets Sales Team Asst.SecretaryNon-performing assets incorporate core and non-core assets such as office equipment, leasehold rights, collateral assets,

enforcement of contracts, legal executions, mergers, fixed assets and surplus office equipment.

PURPOSE AND RESPONSIBILITIES1. Take decisions regarding the non-performing assets.2. Valuate and approve the rules and procedures for authorizing the sale of non-performing assets.3. Determine and approve other processes that benefit the Bank, including authorizing the rent or utilization of non-perform-

ing assets and obtaining approval from the competent authorities for such arrangements.4. Review and approve registration of servitude in a manner consistent with the Bank’s best interests.

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MEETING PROCEDURES1. At least five members shall be present at each Committee meeting.2. The Secretary to the Committee shall record the minutes of the meeting.

VALUE OF ASSETS AND CEILING ON AGGREGATE BUDGET AUTHORITYNot exceeding Baht 300 million of book value.

CREDIT COMMITTEE LEVEL 2The Committee is responsible for considering and approving unlimited size loans except when the Board’s special attention is

warranted.At 31 December 2005, the Committee comprised the following members:1. Directors or individuals designated by the Board:

1.1 Mr. Preecha OonChitti Director Chairman1.2 Mr. Pongpanu Svetarundra Director Member

2. Mr. Phirasilp Subhapholsiri President Member3. Mr. Manit Jeeradit Senior Executive Vice President, Member

Risk Management and Staff Credit Group4. Mrs.Duangphorn Sucharittanuwat Senior Executive Vice President, Corporate Banking Group I Member5. Mr. Surin Premamornkit Senior Executive Vice President, Corporate Banking Group II Member6. Mr. Ekachai Tivutanond Senior Executive Vice President, Business Support Group Member7. Mr. Damrong Boonmalison Secretarial team, Credit Committee Secretary8. Member (Level 6 and upward) of the secretarial team, Credit Committee Assistant Secretary

QUORUM- A quorum of the Committee shall require the presence of more than half of its members as well as the Chairperson of the

Board or at least one Board member or any other person deputed by the Board (not the President).- Votes against the Committee’s decision shall be recorded in the minutes of the meeting.- Where relevant, the Committee shall seek the approval of the Board.- Decisions of the Committee shall be countersigned by all the members present at the meeting. However, if the urgency of

the matter should warrant, the decision shall be countersigned by more than half of the members present and the responsibleparties shall take the necessary follow-up action to obtain the rest of the required signatures.

CREDIT COMMITTEE LEVEL 3The Committee is responsible for considering and approving the total credit line or the principal plus interest, whichever amount

is greater, of up to Baht 400 million per loan.For loans of less than Baht 400 million, the Committee, with the President acting as the Chairman, shall have the right to

delegate approval authority to any group of persons, as deemed appropriate.The Committee consists of the following members:1. Mr. Phirasilp Subhapholsiri President Chairman2. Mr. Manit Jeeradit Senior Executive Vice President, Deputy Chairman

Risk Management and Staff Credit Group3. Mrs.Duangphorn Sucharittanuwat Senior Executive Vice President, Corporate Banking Group I Member4. Mr. Surin Premamornkit Senior Executive Vice President, Corporate Banking Group II Member5. Ms. Panute Na Chiang Mai Executive Vice President, Group Deputy Member

- Risk Management and Staff Credit)6. Mr. Songwud Buakhem Executive Vice President, Asset Management Division Member7. Mr. Paraadorn Phakaphat Executive Vice President, Legal Division Member

or Team Leader or expert of the Legal Team8. Mr. Damrong Boonmalison Secretarial team, Credit Review Committee Secretary9. Member (Level 6 and upward) of the secretarial team, Credit Review Committee Assistant Secretary

QUORUM AND MEETING PROCEDURES- A quorum of the Committee shall require the presence of more than half of its members, including the Chairman or Deputy

Chairman or a Director from Corporate Banking Group I or Group II.- In the event that the core members of the Committee (Chairman, Vice Chairman and a Director from Corporate Banking

Group I or Group II) are unable to attend the meeting, the Chairman of the Committee shall appoint the most appropriate personto assume the role.

- Votes against the Committee’s decisions shall be recorded in the minutes of the meeting.- Decisions of the Committee shall be countersigned by all the members present at the meeting. However, if the urgency of

the matter should warrant, the decision shall be countersigned by more than half of the members present and the responsibleparties shall take the necessary follow-up action to obtain the rest of the required signatures.

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CREDIT COMMITTEE LEVEL 4The Committee is responsible for considering and approving the total credit line or the principal plus interest, whichever amount

is greater, of up to Baht 200 million per loanLoans of more than Baht 10 million (Ten Million Baht) but less than Baht 50 million shall be channeled to the Committee

through the Division concerned without requiring the concurrence of the Senior Executive Vice President. However, applicationsfor increased loan limits shall be channeled to the Committee through the Senior Executive Vice President concerned.

The Committee is divided into 6 groups as follows:

CREDIT COMMITTEE LEVEL 4, GROUP 11. Mr. Manit Jeeradit Senior Executive Vice President, Chairman

Risk Management and Staff Credit Groupor Mrs. Panute Na Chiang Mai Executive Vice President, Group Deputy - Risk Management and Staff Credit)

2. Mr. Chit Chittivaranon Executive Vice President, Corporate Banking Division 1/1 Member3. Mr. Wichayarat Usuparat Senior Vice President, Corporate Banking Division 1/24. Mr. Paraadorn Phakaphat Executive Vice President, Legal Division Member

or Team Leader of Legal Team or Team Leader at Level 8 of Legal Team5. Member (Level 6 and upward) of the secretarial team, Credit Committee Secretary

CREDIT COMMITTEE LEVEL 4, GROUP 21. Mr. Manit Jeeradit Senior Executive Vice President, Chairman

Risk Management and Staff Credit Groupor Mrs. Panute Na Chiang Mai Executive Vice President, Group Deputy - Risk Management and Staff Credit)

2. Mr. Vorakan Dhepchalerm Executive Vice President, Corporate Banking Division 4/2 Member3. Mr. Somkiat Sethasompope Senior Vice President, Corporate Banking Division 2/1 Member4. Mr. Paraadorn Phakaphat Executive Vice President, Legal Division Member

or Team Leader of Legal Team or Team Leader at Level 8 of Legal Team5. Member (Level 6 and upward) of the secretarial team, Credit Committee Secretary

CREDIT COMMITTEE LEVEL 4, GROUP 31. Mr. Manit Jeeradit Senior Executive Vice President, Chairperson

Risk Management and Staff Credit Groupor Mrs. Panute Na Chiang Mai Executive Vice President, Group Deputy - Risk Management and Staff Credit)

2. Mr. Songwud Buakhem Executive Vice President, Asset Management Division Member3. Mr. Kraisorn Pongpun Executive Vice President, Corporate Banking Division 3/1 Member4. Mr. Paraadorn Phakaphat Executive Vice President, Legal Division Member

or Team Leader of Legal Team or Team Leader at Level 8 of Legal Team5. Member of the secretarial team, Credit Committee (Level 6 and upward) Secretary

CREDIT COMMITTEE LEVEL 4, GROUP 41. Mr. Manit Jeeradit Senior Executive Vice President, Chairman

Risk Management and Staff Credit Groupor Mrs. Panute Na Chiang Mai Executive Vice President, Group Deputy - Risk Management and Staff Credit)

2. Mr. Wiwat Vetayanukul Executive Vice President, Corporate Banking Division 4/1 Member3. Mr. Wongkasem Karnthanat Senior Vice President, Corporate Banking Division 5/2 Member4. Mr. Paraadorn Phakaphat Executive Vice President, Legal Division Member

or Team Leader of Legal Team or Team Leader at Level 8 of Legal Team5. Member (Level 6 and upward) of the secretarial team, Credit Committee Secretary

CREDIT COMMITTEE LEVEL 4, GROUP 51. Mr. Manit Jeeradit Senior Executive Vice President, Chairperson

Risk Management and Staff Credit Groupor Mrs.Panute Na Chiang Mai Executive Vice President, Group Deputy Chairperson

- Risk Management and Staff Credit)2. Mr. Samchai Benchapathomrong Executive Vice President, Corporate Banking Division 3/2 Member3. Mr. Boriphat Kulchatchai Senior Vice President, Member

Non-Performing Loan Management Team, Asset Management Division4. Mr. Paraadorn Phakaphat Executive Vice President, Legal Division Member

or Team Leader of Legal Team or Team Leader at Level 8 of Legal Team5. Member (Level 6 and upward) of the secretarial team, Credit Committee Secretary

CREDIT COMMITTEE LEVEL 4, GROUP 61. Mr. Manit Jeeradit Senior Executive Vice President, Chairperson

Risk Management and Staff Credit Groupor Ms. Panute Na Chiang Mai Executive Vice President, Group Deputy - Chairperson

Risk Management and Staff Credit)

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2. Mr. Suwat Summashipvitsavakul Executive Vice President, Corporate Banking Division 2/2 Member3. Mrs. Wirongrong Sukying Executive Vice President, Corporate Banking Division 5/1 Member4. Mr. Paraadorn Phakaphat Executive Vice President, Legal Division Member

or Team Leader of Legal Team or Team Leader at Level 8 of Legal Team5. Member (Level 6 and upward) of the secretarial team, Credit Committee Secretary

SUBSIDIARY COMMITTEE*1. Mr.Tara Ratanaphiphob Senior Vice President, Corporate Banking Division 4/2 Member2. Ms. Wanida Supanantaroek Senior Vice President, Corporate Banking Division 3/1 Member

* The Subsidiary Committee shall attend any meeting in order to achieve a quorum.

QUORUMA quorum shall require the presence of the Chairperson and two members.The member representing the Corporate Banking Division who is connected with the loan application being considered by the

Committee or whose signature appears on the application so considered shall not be permitted to vote on the matter, but shallattend the meeting in order to achieve a quorum.

Decisions of the Committee shall be countersigned by all the members present at the meeting. However, if the urgency of thematter should warrant, the decision shall be countersigned by more than half of the members present and the responsible partiesshall take the necessary follow-up action to obtain the rest of the required signatures.

CREDIT COMMITTEE LEVEL 5The Committee is responsible for considering and approving the total credit line or the principal plus interest, whichever amount

is greater, of less than Baht 10 million.

CHAIRMAN OF THE COMMITTEEThe Committee comprises the Chairman, Mr. Somchai Vongpiyasatit.

MEMBERSHIP OF THE COMMITTEEThe Committee consists of the following members:

1. Ms. Ong-Orn Pruthikosit 13. Mr. Chanan Ngampojanavong2. Ms. Suteewan Sirisawat 14. Mr. Pornchai Shardwee3. Ms. Noppamas Tamkaongarm 15. Mr. Munin Thampornpiphat4. Mrs. Suchada Na Bangchang 16. Mr. Neramit Panchangkakul5. Mr. Narong Ongartmaneerut 17. Mr. Somchai Toemtrisna6. Mr. Chalermpol Decharit 18. Mr. Sarnanda Lekhyananda7. Mr. Sonthit Chukate 19. Mr. Suwat K.Srisuwan8. Mrs. Kampoo Visuthiphol 20. Mr. Sakont Srikrisanaruks9. Mr. Chaichana Sakkara 21. Mr. Sanarat Sukkul10. Mrs. Wipavee Buranasomphob 22. Ms. Siriporn Sirisingha11. Mr. Voraphong Pattanapibul 23. Mr. Vongpat Bhuncharoen12. Mr. Chalor Taerungreung 24. Ms. Chatsaral Anantakool

SECRETARY TO THE COMMITTEEMember (Level 4 and upward) of the secretarial team, Credit Committee

QUORUMA quorum shall require the presence of the Chairman and two members.Decisions of the Committee shall be countersigned by all the members present at the meeting. However, if the urgency of the

matter should warrant, the decision shall be countersigned by more than half of the members present and the responsible partiesshall take the necessary follow-up action to obtain the rest of the required signatures.

THE EXECUTIVE AND SENIOR MANAGEMENTAs at 31 December 2005, the Bank’s senior management consisted of the following seven members:1. Mr. Phirasilp Subhapholsiri President2. Mrs.Duangphorn Sucharittanuwat Senior Executive Vice President, Corporate Banking Group I3. Mr. Manit Jeeradit Senior Executive Vice President, Risk Management and Staff Credit Group4. Mr. Ekajai Tivutanond Senior Executive Vice President, Business Support Group5. Mr. Surin Premamornkit Senior Executive Vice President, Corporate Banking Group II6. Mr. Surachai Chitratsenee Senior Executive Vice President, Retail Banking Group7. Mr. Chamnarn Wangtal Senior Executive Vice President, Institutional Banking GroupThe following senior executives are responsible for all financial and accounting matters:1. Mr. Prasert Wangrattanapranee First Executive Vice President, Financial Control Division2. Miss Pensri Phabhapote Senior Vice President, Financial Accounting and Budgeting Department

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SELECTION OF SENIOR EXECUTIVESIn 2005, policy attention continued to be given to attract and retain professionally qualified and experienced individuals

needed to deliver the business strategy and to enhance income-generating activities. In the selection process, candidateinterviews are carefully structured and conducted by an interview panel consisting of senior executives representing the Group andDivision concerned as well as Human Resources Management Division.

REMUNERATION OF DIRECTORS AND SENIOR EXECUTIVESThe Board’s policy is to disclose the remuneration of Directors and Senior Executives, as prescribed in the Public Company Act

as well as the rules and regulations prescribed by the relevant regulatory bodies. Best efforts are made to ensure that the levelsof remuneration remain competitive and appropriate in the light of the Bank’s policy and external salary comparisons. The criteriaand procedures are presented below.

REMUNERATION OF DIRECTORSThe Bank Charter sets out broad criteria and procedures to allow flexibility in determining remuneration package for the Board

so as to take account of the Bank’s operational performance and the prevailing situation. Specific remuneration packages areconsidered and approved by the meeting of shareholders and comprise principal elements such as base salary, meetingallowance, pension, bonus and other benefits. In this respect, shareholders have the right to determine the exact amount, orestablish the general principles on which the remuneration of the Board is to be fixed at appropriate times. Employees who alsoserve as Board members are entitled to receive additional remuneration according to the increased responsibilities.

The Board is responsible for presenting the details to the shareholders and, in this process, shall ensure that the remunerationpackage is structured in ways that support the delivery of long-term value and returns for the Bank and its shareholders, withconsideration given to the following main factors:ë a total remuneration level that is comparable to levels provided by other entities in the same industry;ë scope and responsibilities;ë the Bank’s financial strength;ë performance rating as it relates to the achievement of the Bank’s predetermined targets.

The remuneration arrangements for 2005 were as follows:1. Meeting and entertainment expenses:

The General Meeting of Shareholders, at its sixth session (held in 2000), approved monthly lump-sum payment ofmeetings and entertainment expenses as follows:

- Meeting allowance:Chairman Baht 130,000 per monthDirector Baht 44,000 per month

- Entertainment allowance:Chairman Baht 70,000 per month(The Directors are responsible for all taxes. The above arrangements came into effect in May 2000).The General Meeting of Shareholders, at its ninth session (held in 2003), reviewed the above arrangements and

decided that no change was necessary until further notice.2. The Bank (subsidiaries) paid other remuneration to the Board as follows:

(a) Meeting allowance for Board Committees (in pursuance of the resolution adopted by the Board, at its 12/2543meeting, held on 25 May 2000):Chairperson (tax withheld) Baht 52,000 per monthMembers (tax withheld) Baht 40,000 per month

(b) Insofar as the payment of meeting allowance for the Audit Committee was concerned, the Bank paid the Committee forproviding audit services to BT Consulting Co. Ltd. The rest of the subsidiaries shouldered their own expenses (inpursuance of the resolution adopted by the Board, at its 21/2548 meeting, held on 27 May 2005).Dr. Piboon Limprapat Baht 6,000 per monthDr. Sarasin Viraphol Baht 4,000 per monthMr. Dharin Divari Baht 4,000 per month

(c) Allowance for attending board meetings of subsidiaries (paid directly by the subsidiaries in pursuance of the resolutionadopted by the Board, at its 4/2544 meeting, held on 21 March 2001)Chairperson (tax withheld) Baht 33,000 per monthDirectors (tax withheld) Baht 22,000 per month

ë The Board shall establish any committee other than the standing committees to assist in its functions, including determining theappropriate terms and conditions as well as the emoluments or benefits of committee members for assuming the increasedresponsibilities.

ë The Board shall appoint advisers to assist it in the conduct of the Bank’s business and affairs, including determining theemoluments or benefits.

ë The Board shall disclose the remuneration of its members and senior executives, as required by the Public Company Act aswell as rules and regulations prescribed by the relevant regulatory bodies.

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REMUNERATION OF SENIOR EXECUTIVESë The Board shall set the criteria for annually reviewing, evaluating and fixing the base salary level and performance-related

remuneration or benefits of senior executives. In so doing, special consideration is given to evaluating individual performanceagainst strategic objectives, including the associated risks and the need to deliver long-term value to shareholders.

ë The Board shall review employee remuneration structure, including determining the emoluments or benefits of employees orrecruits or any other persons having material relationship with the Bank, either on a permanent or fixed-term basis, based onrecommendations of senior management.

1. FINANCIAL REMUNERATION

(A) REMUNERATION AND BENEFITS TO BOARD MEMBERSIn 2005, the remuneration of Board members totaled Baht 11,520,000, representing Baht 5,476,000 in allowance for

attending Board meetings, Baht 1,584,000 in meeting allowance paid to the Audit Committee, Baht 336,000 for providingauditing service to subsidiaries, Baht 1,224,000 in meeting allowance paid to Remuneration and Nomination Committee, Baht1,104,000 in meeting allowance paid to Credit Review Committee for Level 2 Loans, Baht 748,000 in meeting allowance paidto the Committee on the Sale of Non-Performing Assets, Baht 840,000 in entertainment allowance, and Baht 208,000 inmeeting allowance paid to IT Strategic Planning Committee.

Name Official Title Types of emolument Amount (Baht)

1. Mr. Tawee Butsuntorn Chairman Meeting allowance 1,560,000Entertainment 840,000

Chairman, Remuneration and Nomination Committee Meeting allowance 624,000Chairman, Committee on the Sale of Non-Performing Assets(effective April 2005) Meeting allowance 468,000Total 3,492,000

2. Mr. Phirasilp Subhapholsiri President Meeting allowance 528,000Total 528,000

3. Dr. Piboon Limprapat Independent Director Meeting allowance 528,000Chairman, Audit Committee Meeting allowance 624,000Audit of subsidiary * Audit service 144,000Total 1,296,000

4. Dr. Sarasin Viraphol Independent Director Meeting allowance 528,000Member, Audit Committee Meeting allowance 480,000Audit of subsidiary * Audit service 96,000Total 1,104,000

5. Dr. Dharin Divari Independent Director Meeting allowance 528,000Member, Audit Committee Meeting allowance 480,000Audit of subsidiary * Audit service 96,000Total 1,104,000

6. Mr. Pongpanu Svetarundra Director Meeting allowance 528,000Member, Credit Review Committee for Level 2 Loans Meeting allowance 480,000Total 1,008,000

7. Mr. Preecha OonChitti Director Meeting allowance 528,000Member, Credit Review Committee for Level 2 Loans Meeting allowance 624,000°Member, Remuneration and Nomination Committee Meeting allowance 480,000Total 1,632,000

8. Mr. Techapit Sangsingkeo Director (appointed in June 2005) Meeting allowance 308,000Member, Committee on the Sale of Non-Performing Assets Meeting allowance 280,000Total 588,000

9. Mrs. Saowanee Suwannacheep Director (appointed in June 2005) Meeting allowance 308,000Chairman, IT Strategic Planning Committee Meeting allowance 208,000Total 516,000

10. Mr. Luen Krisnakri Director (appointed in October 2005) Meeting allowance 132,000Chairman, Remuneration and Nomination Committee Meeting allowance 120,000Total 252,000

* BT Consultants Co. Ltd.

(B) REMUNERATION AND BENEFITS TO SENIOR EXECUTIVESIn 2005, the salaries of seven senior executives at or above the rank of senior executive vice president amounted to Baht

36,500,640.

2. OTHER BENEFITSIn 2005, the Bank’s contribution towards the provident fund for seven senior executives at or above the rank of senior

executive vice president amounted to Baht 1,825,032.

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CHANGE IN SHAREHOLDINGS OF THE BOARD AND SENIOR MANAGEMENT

As at end 2005 As at end 2004

Name Official Title (shares) (shares) Change

Mr. Phirasilp Subhapholsiri President 10,045 10,045 -Dr. Piboon Limprapat Independent Director 1 1 -Dr. Sarasin Viraphol Independent Director 1 1 -Mr. Pramon Sutiwong Adviser to the Board 1 1 -Mr. Songwud Buakhem Executive Vice President 4 4 -

BOARD AND SENIOR MANAGEMENT SHARE OWNERSHIP IN SUBSIDIARIES

As at end 2005 As at end 2004

Particulars (shares) (shares) Change

Mr. Ekajai Tivutanond Senior Executive Vice President- BT Consultants Co. Ltd. 1 1 -

Mr. Prasert Wangrattanapranee First Executive Vice President- BT Consultants Co. Ltd. 1 1 -

Mr. Phongsuree Bunnag Executive Vice President- BT Consultants Co. Ltd. 1 1 -

Mr. Somkiat Setasompope Senior Vice President,- BT Leasing Co. Ltd. Corporate Banking Division 2/1 1 1 -

Mr. Chamnan Ngampojanavong Senior Vice President,- BT Leasing Co. Ltd. Corporate Banking Division 1/2 1 1 -

Mr. Tara Ratanaphiphob Senior Vice President,- BT Leasing Co. Ltd. Corporate Banking Division 4/2 1 1 -

Mr. Pramoth Singhanue Team Leader,- BT Insurance Co. Ltd. Marketing Strategy Development Team 10 10 -- BT Consultants Co. Ltd. 1 1 -- Krungthai Thanakit Public Co. Ltd. 1 1 -

Mr. Pattanasak Chermchansophon Team Leader,- BT Asset Management Co. Ltd. Compliance and Credit Review Team 1 - 1- Sathorn Asset Management Co. Ltd. 1 - 1

CONFLICTS OF INTERESTThe Bank’s Corporate Governance Guidelines set out policy and procedures for conducting major transaction, including entry

into related party transactions, and/or purchasing or selling significant assets and/or acquiring rights to purchase or sell significantassets. Major transactions require approval of at least 75 per cent of the attending shareholders with voting right.

Any transaction that does not cross the major transaction threshold shall be submitted for shareholder approval if, in the opinionof the Board, such transaction can create potential liability to the Bank and its shareholders.

1. PURCHASE OR SALE OF SIGNIFICANT ASSETSThe purchase or sale of significant assets, or the purchase or sale of a business, has the potential to create liability for the

Bank, thereby impacting on its business operations. In the light of this, the Board and Senior Management are required to takeprudent steps before making the decision as follows:

1) consider all the factors;2) make informed decisions or provide informed recommendations to the shareholders; and3) document the reasons underlying the decisions or recommendations, including any other pertinent information in board

meeting minutes and the notice of shareholders’ meeting.

2. RELATED PARTY TRANSACTIONSCare is taken to avoid making major transactions that can be interpreted as related-party transactions. If such transaction

cannot be avoided, prudent steps are taken to:(a) ensure that the transaction is legitimate and in the Bank’s best interests, including that the terms and conditions are not

different from or similar to those entering into with unrelated parties; and(b) ascertain that the procedure for considering and approving any given transaction is fair, transparent and auditable,

including that the decision is made by an uninterested party, with steps taken to ensure full and adequate disclosure toshareholders.

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3. RECAPITALIZATIONThe Bank undertakes recapitalization when:(a) there is a specific business plan or purpose to raise additional capital based on the premise that an increase in the number

of shares will contribute towards enhancing future profitability;(b) the offer price is justified so as to avoid unduly diluting the value of existing shares;(c) the offering is conducted in a fair and appropriate manner without providing an avenue forany person or group of persons

to gain control over the Bank’s business and affairs except when it is in the Bank’s best interests and with shareholder approval.In such case, action is taken to ensure complete disclosure of information and to prohibit the stakeholders from voting on thematter.

1. RELATED PARTY TRANSACTIONS:

In 2005, important transactions with the Bank’s subsidiary/associate/related companies (where there is a cross-shareholdingand/or joint management), including other related parties (Board members and employees holding the rank of First Vice Presidentand above) can be summarized as follows:

(a) At 31 December 2005, loans and contingent liabilities associated with one employee holding the rank of First VicePresident and above amounted to Baht 2 million.

(b) At 31 December 2005, loans, contingent liabilities and deposits associated with businesses in which the Bank and itssubsidiaries, Board members, or employees holding the rank of First Vice President and above, hold 10 per cent or more of theirpaid-up capital were as follows:

(millions of baht)

Contingent Outstanding Amount of Nature of relationship

Company Name liabilities loan Interest rate deposit The Bank’s shareholding (%) Joint Management

Subsidiary companies Directors with signature authority:BT Securities Co. Ltd. - 161 MLR, MMR 63 99.99 Ms.Duangphorn Sucharittanuwat

Mr. Siriyot SrisukswadiBT Leasing Co. Ltd. - 555 MLR-3% 60 99.99 Directors with signature authority:

Mr.Surachai ChitratseneeMr.Siriyot Srisukswadi,Mr.Tada Charukitpaisarn,Mr.Wisarn BooranasuntikoonMr.Taweephol Charoenkittikunpaisal

BT Asset Management - - - 17 99.99 Directors with signature authority:Co. Ltd. Mr. Anusorn Tamjai,

Mr. Manit Jeeradit,Mr. Surin Premamornkit

BT Business Consulting 1.3 3.7 MOR+1% 2 99.99 Directors with signature authority:Co. Ltd. Mr. Adisorn Prakhunhangsit,

Mr. Phongsuree Bunnag,Mr. Prasert Wangrattanapranee,Mr. Paitoon Taweephol

BT WorldLease Co., Ltd. - 656 MOR+2%,MLR+2% 5 75.04 Directors with signature authority:Mr. Surachai ChitratseneeMr.Tada CharukitpaisarnMr. Wisarn BooranasuntikoonMr. Siriyot SrisukswadiMr.Taweephol haroenkittikunpaisal,Mr. Leenawat Chuaratanapongse

Sathorn Asset Management - 268 MLR-1% 25 99.99 Directors with signature authority:Co. Ltd. Mr.Wisarn Booranasuntikoon

Mr. Tanit OnnuchBT Insurance Co. Ltd. - - - 39 99.99 Directors with signature authority:

Mr. Preecha OonChittiMr. Phirasilp SubhapholsiriMr. Ekajai TivutanondMr. Surin PremamornkitMr. Surachai Chitratsenee

Nava Factoring Co. Ltd.* - 4 None - 90.00 -

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(millions of baht)

Contingent Outstanding Amount of Nature of relationship

Company Name liabilities loan Interest rate deposit The Bank’s shareholding (%) Joint Management

Millea Life Insurance (Thailand)- - - 53 30.00 Directors: Public Co. Ltd. Mr. Phirasilp Subhapholsiri

Mr. Chamnarn WangtalWorldclass Rent A Car Co. Ltd. 3 29 BT’S MOR%,MLR BT-1% - 20.00 Directors with signature authority:

Mr. Wisarn BooranasuntikoonMr. Wiwat Vetayanukul

Associate companiesSuetrong Construction Co. Ltd. 27 804 MLR 5 50.00 -P.T.K. Metal Co. Ltd. - 256 MLR(AVG KTB,BT),2.5% - 31.33 -Burapa Steel Industries Co. Ltd. - 297 15%,0.1% 13 15.43 -Srithepthai Plaschem Co. Ltd. - 283 MLR(AVG KTB,BBL,BT,BAY) - 12.06 -

-3%,UCRSamchai Public Co. Ltd. - 277 15 - 19% - 10.00 -S. Capital Co. Ltd. - 280 15% - 10.00 -Senju Metal (Thailand) Co. Ltd. - - - 9 10.00 -Sukhumvit Asset Management - - - 45 - -Co. Ltd.Thai Asset Management Corp. - - - 2,760 - -Maxwin Builders Ltd. - 149 None, 4% - - Director:

Mr. Vorakan DhepchalemThai Post Co. Ltd. - - - - - Director: Dr. Anusorn TamajaiRatchaburi Electricity Generating- - 3.25% - - -Co. Ltd.Bangkok Solar Co. Ltd. 299 267 MLR-1%,3.5%-4.5% 17 - -*/ Debt settlement procedures have been initiated.

The Bank offers the same deposit interest rates to the related parties as to other customers.The Bank’s related party transactions with the FIDF, the largest shareholder, are associated with the Gain/Loss Sharing

and Yield Maintenance Agreement, and incorporate yield maintenance income, gain/loss sharing, and promissory notes, theparticulars of which are reflected in the Bank’s balance sheets.

In addition, in 2005, the Bank invested shares from Sathorn Asset Management Co. Ltd. The details have been disclosedin the Notes to the Financial Statements for the year ended 31 December 2005.

(c) The Bank has no person who has the potential to create conflict of interest holding more than 5 per cent of the votingshares of any of the Bank’s subsidiary or associate companies.

2. RELATED PARTY TRANSACTIONS AND JUSTIFICATIONLoans and contingent liabilities associated with employees holding the rank of First Vice President and above fall within the

framework of the Bank’s employee benefits scheme and the interest rates offered are only applicable to employees. However,loans which were transferred to the Bank under the merger process are subject to market interest rates.

Loans, contingent liabilities and deposits associated with businesses in which the Bank and its subsidiaries, or Boardmembers, or employees holding the rank of First Vice President and above, hold 10 per cent or more of their paid-up capital, weretransferred to the Bank under the merger process, or undergoing debt restructuring. These loans are subject to market interestrates which is a normal business practice.

3. PROCEDURES FOR APPROVING RELATED PARTY TRANSACTIONS AND PROTECTING SHAREHOLDERS’ INTERESTAccording to the Bank Charter, all related party transactions are subject to the formal approval process, including the

scrutiny and approval of the Credit Committee concerned. Members of the Board or Senior Management having interest in thetransaction are not allowed to take part in the decision making.

4. TRENDS IN RELATED PARTY TRANSACTIONSRelated party transactions constitute part of the Bank’s business activities and are subject to the formal approval process.

Consequently, there is every probability that related party transactions will continue to be an integral part of the Bank’s businessactivities. However, the Bank has put in place clearly-defined procedures and practices for reviewing and approving suchtransactions.

SAFEGUARDING OF INFORMATIONThe Board continues to attach importance increasingly to prohibiting the misuse of inside information for personal gain.

Towards that end, the Board has put in place a policy requiring the parties concerned to prevent willful disclosure of insideinformation into the public domain. In this process, members of the Board, Senior Management and staff including their spousesand dependent children are prohibited from using information that has become privately known to them to purchase, sell, transfer,including accepting the transfer of securities issued by the Bank.

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Members of the Board and Senior Management engaged in the purchase, sale, transfer, including accepting the transfer ofsecurities issued by the Bank shall report the matter to the Stock Exchange of Thailand within three business days after theconclusion of the transaction. The parties concerned shall also provide a copy of the report to the Office of the President forevidentiary purposes. Individuals found guilty of misusing the Bank’s inside information for personal gain shall be subject todisciplinary action in accordance with the established rules and practices.

In addition to the above, the Board has assigned the Internal Audit Department to oversee the Bank’s internal operations witha view to maintaining the integrity of compliance with applicable laws and statutory rules and regulations.

INTERNAL OVERSIGHT RESPONSIBILITIESINTERNAL OVERSIGHTEffective oversight services are a high priority for the Bank. In this process, the Audit Committee is responsible for assisting

the Board in fulfilling its oversight responsibilities. The Committee meets at least twice a month to monitor and review theeffectiveness of the Bank’s oversight system to provide assurance that the system is contributing towards achieving efficiency ofrisk management, reliability of financial reporting and effectiveness of the Internal Audit Department. It also holds meetings withSenior Management and certified public accountants to ensure that significant weaknesses in the design or operation of internalcontrol that could adversely affect the Bank’s ability to meet its objectives would be prevented or detected in a timely manner. Asummary and highlights of the Bank’s oversight activities are presented below.

- THE ORGANIZATION AND ITS ENVIRONMENTIn accordance with the established practice, the annual progarmme of work has been reviewed during the course of the

year. In addition, appropriate action has been taken to restructure the Bank’s organizational structure and aligned the newstructure and business processes. Focus continued to be given to ensuring that staff observe the Bank’s Code of Business Ethicsand, in so doing, provide customers with fair and equal treatment. It is evident that the creation of a control environment hascontributed towards sustaining organizational support for effective internal control.

- RISK MANAGEMENTThe Bank continues to assign foremost attention to assess and manage risks posed by both internal and external factors.

In this process, the Bank has put in place a process for designing, evaluating and modifying the organizational structure of the RiskManagement and Staff Credit Group. It has also established the Risk Management Committee to assume the responsibility fordefining the role, duties, responsibilities and evaluating performance against the Bank’s risk management objectives.

- MANAGEMENT OVERSIGHTThe Bank has clearly defined and documented as well as regularly reviews areas of authority and responsibilities for

different levels of Senior Management, including determining loan approval authority. A clear separation of duties among variousmanagement positions also provides a mechanism of checks and balances between senior executives.

Senior Management is required to bring to the attention of the Board any transaction which concerns significantshareholders, directors and senior executives or the parties related to them. In addition, the Bank has put in place policies andprocedures governing approval of loans for or investments in any business in which the Bank or its senior executives has aninterest, including lending to shareholders or senior executives.

In addition to the above, the Internal Audit Department assumes responsibility for maintaining the integrity of compliancewith law as well as rules and regulations prescribed by the relevant regulatory bodies.

- INFORMATION SYSTEM AND INFORMATION FLOWThe Bank has brought its accounting policies and practices in line with the generally accepted accounting standards that

support the Bank’s business requirements. In addition, focus of attention continues to be given to developing, enhancing andmaintaining information systems and databases to address the growing need for quick and accurate search and retrieval of vitalrecords and other information. The Bank has also put in place rules and procedures governing the use of computerized documentmanagement system to help manage important documents effectively.

In addition to the above, practice has been put in place to allow Board members to record any objections raised during aboard meeting in the minutes of the meeting.

- MONITORING SYSTEMThe Bank has put in place processes for continuously monitoring and reviewing the implementation of planned activities

and achievement of results against its policies, objectives and oversight requirements. This includes the preparation of the annualprogramme of work which is periodically reviewed with a view to ensuring its continued relevance, efficiency and effectiveness.

The Internal Audit Department was established as an independent office reporting directly to the Audit Committee, tostrengthen internal oversight within the Bank. Audit recommendations made by the Department are regularly tracked by the AuditCommittee to ensure compliance.

REPORT OF THE AUDIT COMMITTEEIn 2005, the Audit Committee performed a range of tasks assigned to it by the Board of Directors, including providing

compliance with the requirements of the Stock Exchange of Thailand as well as other relevant rules and regulations. In thisprocess, focus continued to be given to enhancing the inspection, reviewing and internal auditing functions within the Bank,including building an effective corporate governance structure and reinforcing risk management systems, with a view to addingvalue to the organization. During the calendar year 2005, the Committee met 24 times or twice a month to undertake thefollowing major activities:

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1. Considered and approved the audit plan and annual budget for the Internal Audit Department, including conducting aperformance audit of the Department as well as the progress it has achieved in developing internal auditors, therebyensuring compliance with key international standards as well as the requirements of the Bank of Thailand.

2. Ensured the integrity of the Bank’s financial statements including conformity with generally accepted accounting principles;selected and recommended to the Board and shareholders the appointment and remuneration of the external auditor.

3. Received and reviewed reports prepared by the Internal Audit Department, including the internal audits conducted at theBank’s head offices and branch offices, as well as the oversight of the Bank’s information technology and risk managementsystems.

4. Reviewed credit extensions and contingent liabilities to ensure compliance with the requirements prescribed by the Bank ofThailand.

5. Reviewed inspection reports related to the impaired assets that are covered by the Financial Institutions Development Fund(FIDF).

6. Reviewed reports concerning credit quality, credit facilitation, credit procedures and the related follow-up action.7. Reviewed reports concerning domestic securities transactions, the license for which has been provided to the Bank by the

Securities Exchange Commission and Stock Exchange of Thailand, including ensuring compliance with relevant laws andregulations.

8. Reviewed reports concerning the audit of transactions as required by the Anti-Money Laundering Office in accordance withthe Anti-Money Laundering Act.

9. Considered the recommendations intended to address the issues observed by the external auditor, commercial bankinspector(s), Bank of Thailand, Securities Exchange Commission and Stock Exchange of Thailand, and the Internal AuditDepartment, with a view to requiring the offices concerned to ensure prompt compliance and efficient follow-up action.

10.Attended meetings with Senior Management and the certified public accountant to exchange views and ideas as well as toreceive comments.

In discharging its tasks, the Committee found that the effectiveness of the Bank’s oversight system is contributing towardsenhancing the Bank’s business operations. In this process, the Internal Audit Department reports directly to the Audit Committeeand implementation of audit recommendations are regularly monitored to ensure compliance.

Piboon Limprapat, Ph.D.Chairman of Audit Committee

CODE OF BUSINESS ETHICSAs endorsed by the Board of Directors, at its 2/2548 meeting, held on 28 February 2005, the Bank has adopted a Code of

Business Ethics and integrated it into Part III of the Corporate Governance Guidelines. The Code reflects and builds upon theBank’s core values: trust, integrity, honesty and transparency, taking into account environmental and social considerations. In thisprocess, the Bank sets standards of conduct required of all directors, senior executives and employees as well as recruits, with aview to ensuring ethical and responsible behavior towards its shareholders, customers and others. Focus is also given toincreasing the understanding of how their work interacts with society and the environment as well as the Bank’s competitors. Inthis regard, the Code requires all employees to preserve customer confidentiality as well as enhance customer satisfaction throughprompt and efficient service. In performing their duties, employees are required to keep uppermost in their mind the principles ofgood corporate governance, including the need to use commonsense, act honestly and fairly, adhere to rules and regulations, andensure compliance with law and regulatory requirements while extending full cooperation to the supervisory and regulatory bodiesconcerned. Alleged breaches are investigated in accordance with the set procedures, and disciplinary penalties are imposed iffound guilty.

ENHANCING RELATIONSHIPS WITH INVESTORSThe Board continues to attach importance to providing full, accurate, timely and transparent information to shareholders and

other interested parties through various media channels, including those provided by the Stock Exchange of Thailand. In addition,a number of offices within the Bank are assigned to maintain various forms of communication between the Bank and the relevantsupervisory and regulatory bodies, as well as investors, shareholders, analysts and the general public. In practice, this translatesinto work undertaken by the following offices:

- The Shareholders and Investors Services Unit is assigned to maintain close communication with investors and the relevantsupervisory and regulatory bodies, including Office of the Securities and Exchange Commission and Stock Exchange of Thailand.It is also responsible for providing to shareholders and investors accurate, timely and transparent disclosure of financial and otherinformation, including, for example, the Bank’s management and shareholding structures and related party transactions, whileensuring compliance with regulatory requirements.

- The Public Relations Office is the focal channel to disseminate information on the Bank’s products and services.- With regard to complaints commitment, the Bank’s Electronic Banking Service Department is assigned to develop

and maintain an up-to-date database of customer complaints, including classifying them according to source and type. Theinformation is subsequently forwarded to the Office of the President, the Internal Audit Department and other offices responsible forresolving complaints in a collective, coherent and coordinated manner. Customers can address their complaints or share theirconcern with the Bank through BANKTHAI CARE CENTRE which is open between 08.30 and 17.00 hours, every business day,by dialing 0-2626-7777 and enter -0-, or use facsimile No. 0-2626-7770, or e-mail at www.bankthai.co.th.

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9. EXECUTIVE OFFICERSBOARD OF DIRECTORSMR. TAWEE BUTSUNTORNChairmanAppointed on March 1, 2004Other Positions Chairman of the Compensation and Nomination Committee / Management of Assets Pending SaleAge 66Education B.Eng. (1st Class Hons.),Chulalongkorn /Honorary Doctorate Degree in Engineering, Burapha University / Chulalongkorn /

King’s Mongkut Institute of Technology LadkrabangExperience Deputy Managing Director / Advisor The Siam Cement Public Co., Ltd. ë Director and Chairman of the Board of Executive

Director, TMB Bank Public Co., Ltd. ë Chairman of the Phayathai Asset Management Co., Ltd. ë Advisor to The Board ofDirectors of BankThai Public Co.,Ltd. ë Director Modern Chemical Technology Co., Ltd

Present Chairman Cathay Leaseplan Public Co., Ltd. / Union Petrochemical Public Co.,Ltd./ Daichi Corporation Public Co.,Ltd. /NFC Fertilizer Public Co.,Ltd. ë Director, T.C.C. Land Co.,Ltd./ Sahaviriya Steel Industries Public Co., Ltd. ë Honorary Consulthe Republic of Uganda to the Kingdom of Thailand

Training The Dynamic Management for International Executives, Syracuse University,U.S.A ë The Chief Executive Program, IrishManagement Institute, Ireland ë The Manufacturing in Corporate Strategy / AMP-The Advanced Management Program,Harvard University, Graduate School of Business Administration, U.S.A. ë Director Certification Program (DCP) By ThaiInstitute of Directors Association (IOD)

MR. PHIRASILP SUBHAPHOLSIRIPresidentAppointed on August 14, 1998Other Positions Chairman of the Management Committee / Risk Management Committee / Member of the Credit Committee / IT Strategic

Planning CommitteeAge 52Education B.A., Business Administration, Yokohama National University, Japan (under the Japanese Government’s Scholarship)Experience Securities Analyst, Nomura Securities Co., Ltd. (Tokyo) ë Fund Management, The Mutual Fund Co., Ltd. ) ë Country Trade

& Project Finance Manager, The Chase Manhattan Bank, N.A.) ë Corporate Audit Manager, Corporate Planning Manager,Thai Oil Co., Ltd. ) ë Director & Executive Vice President Asia Credit Co., Ltd. / Finance One Public Co., Ltd.) ë President,Krungthai Thanakit Public Co., Ltd. ë Director, BT Securities Co., Ltd. ë Chairman, Krungthai Thanakit Finance Public Co.,Ltd.

Present Director, BT Insurance Co., Ltd. / Millea Life Insurance (Thailand) Public Co.,Ltd.Training Foreign Exchange Dealing (By Standard Chartered Bank) ë Capital Marketing in Asia / The Asia Pacitic Issuers & Investors

Forum (By Euro Money) ë Director Accreditation Program (DAP) By Thai Institute of Directors Association (IOD)

DR. PIBOON LIMPRAPATIndependent DirectorAppointed on April 30, 1999Other Positions Chairman of the Audit CommitteeAge 65Education B.S. in Economics, Thammasat University / M.A. (Economics) University of Philippines / Ph.D. (Economics), University of

Illinois, U.S.A.Experience Chairman, Erawan Trust Finance Co., Ltd., / President Right Product Public Co., Ltd / President Agri Trading

Co., Ltd. ë Director and Executive Director, First Bangkok City Bank Public Co., Ltd. ë Director, BT Insurance Co., Ltd.Present Director, Ladprao Bilingual School / Ladprao Hospital Public Co.,Ltd. / Asia Medical and Agricultural Laboratory and

Research Center Co., Ltd.Training The Board’ Role in Setting Effective Compensation Policy / Chairman 2000 / Directors Certification Program (DCP) / Audit

Committee Program (ACP) By Thai Institute of Directors Association (IOD)

DR. SARASIN VIRAPHOLIndependent DirectorAppointed on June 29, 1999Other Positions Member of the Audit CommitteeAge 59Education B.A. (International Relations), The American University / A.M. (Area Studies - East Asia) / Ph.D. (History and East Asian

Languages), Harvard UniversityExperience Lecturer and Assistant Professor, Chulalongkorn University ë Second Secretary, Royal Thai Embassy, Beijing ë First

Secretary, Political Department (MFA) ë Counsellor, Office of the Permanent Secretary (MFA) ë Director, Policy & PlanningDivision (MFA) Assistant to Foreign Minister ë Minister-Counsellor, Royal Thai Embassy, Tokyo ë Deputy Director-General,Political Department (MFA) ë Ambassador-at-large ë Ambassador to the Republic of the Philippines ë Director-General,Department of the Americas & S. Pacific (MFA) ë Deputy Permanent Secretary, Ministry of Foreign Affairs (MFA)

Present Executive Vice President, C.P. GroupTraining Director Accreditation Program (DAP) By Thai Institute of Directors Association (IOD)

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MR. DHARIN DIVARIIndependent DirectorAppointed on July 21, 2000Other Positons Director of the Audit CommitteeAge 63Education Diploma (Banking), State School of Trade and Economy (Humburg) / Diploma, Sasin - Senior Executive ProgramExperience Branch Manager, Humburg Branch / Senior Manager / Executive Vice President, Thai Farmer Bank Public Co., Ltd.Training Directors Certification Program (DCP) By Thai Institute of Directors Association (IOD)

MR. PONGPANU SVETARUNDRADirectorAppointed on November 14, 2000Other Positions Member of the Credit CommitteeAge 46Education Bachelor of Commerce (Econ.), University of Auckland, U.S.A. / Master of Arts (Econ.), Northwestern University, U.S.A.Experience Public Finance Specialist, Comptroller General Department ë Chief of Monetary Policy and Technical Section, Monetary

Policy and Financial Institution Division / Director of International Economic Policy Division / Senior Expert for Finance, FiscalPolicy Office

Present Deputy Director - General, Fiscal Policy Office, Ministry of FinanceTraining Directors Certification Program (DCP) By Thai Institute of Directors Association (IOD)

MR. PREECHA OONCHITTIDirectorAppointed on October 1, 2002Other Positions Chairman of the Credit Committee / Member of the Compensation and Nomination CommitteeAge 60Education B.S. in Economics, Thammasat UniversityExperience Vice President, Credit and Collateral Department / Senior Vice President, Credit and Collateral Department / First Senior

Vice President / Executive Vice President, Thai Farmers Bank Public Co., Ltd.Present Chairman, BT Insurance Co., Ltd. ë Chairman of the Audit Committee, Eastern Star Realestate Co., Ltd. ë Director, Eastern

Star Resort Co., Ltd. / Con-Plus and Management Co., Ltd. / Ayudhya International Factor Co., Ltd.Training Finance for Non-Finance Director (FN) / Director Certification Program (DCP), Thai Institute of Directors Association (IOD)

MR. TECHAPIT SANGSINGKEODirectorAppointed on June 1, 2005Other Positions Member of the Committee of Management of Assets Pending SaleAge 61Education Bachelor of Economic, Hitotsubashi University, Tokyo / Master of Economic, Keio University, TokyoExperience Director, Southern Region Office / Northern Region Office / Office of the Governor / General Administration

Department / Human Resources & Organization Development Department / Assistant Governor, Operations Group / DeputyGovernor, Corporate Support Service, Bank of Thailand ë Chairman, Nakormthon Bank Public., Co., Ltd. ë Director, PetchburiAssets Management Co., Ltd. (PAMC) / Export-Import Bank of Thailand/Thailand Securities Depository Co., Ltd.

Present Chairman, Sukhumvit Asset Management Co., Ltd. ë Director, Thai Asset Management Corporation (TAMC) ëChairman of the Audit Committee, Professional West Co., Ltd. / Star Sabitary Ware Co., Ltd.

Training Director Accreditation Program (DAP) By Thai Institute of Directors Association (IOD)

MRS. SAOWANEE SUWANNACHEEPDirectorAppointed on June 1, 2005Other Positions Chairman of the IT Strategic Planning CommitteeAge 62Education Bachelor of Commerce and Accountancy (Statistics), Chulalongkorn University / M.S. (Economic Statistics),

University of Kentucky, U.S.A.Experience Deputy Director, Strategic Services & IT Operation Department / Deputy Senior Director, Information Technology Department

/ Director, Information Technology Department / Payment Systems Department / Senior Director, Payment Systems Group/ Assistant Governor, Information Technology, Bank of Thailand

Present Advisor to the Governor, Bank of ThailandTraining Director Certification Program (DCP) By Thai Institute of Directors Association (IOD)

MR. LUEN KRISNAKRIDirectorAppointed on October 1, 2005Other Positions Member of the Compensation and Nomination CommitteeAge 69Education Bachelor of Engineering / Honorary Doctorate Degree in Engineering, Chulalongkorn UniversityExperience Deputy Governor, Operation Department / Marketing Division / Operation, Natural Gas Division / Governor, Petroleum

Authority of Thailand (PTT Public Co., Ltd.)Present Chairman, NS Electronics Co., Ltd. / The Erawan Group Public Co., Ltd. ë Director, Erawan Hotel Public Co., Ltd. / United

Thai Shipping Public Co., Ltd.Training Director Certification Program (DCP) By Thai Institute of Directors Association (IOD)

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EXECUTIVE OFFICERSCORPORATE BANKING GROUP 1MRS. DUANGPHORN SUCHARITTANUWATSenior Executive Vice President, Corporate Banking Group 1Appointed on June 14, 1993Age 54Education Bachelor of Accounting, (2nd Class Hons.), Chulalongkorn University / Master of Business Administration, Thammasat

University / Certified Public Account No. 5228Experience Senior Auditor, Price Waterhouse & Co., Vice President, Audit Department / Senior Vice President, Accounting Department

/ Senior Vice President, Credit & Marketing Department, Asia Credit Co., Ltd. ë Managing Director, Sinn Asia Leasing Co.,Ltd. ë Senior Vice President, Credit & Marketing Division, Finance One Public Co., Ltd. ë Executive Vice President, SeniorExecutive Vice President, Krungthai Thanakit Public Co., Ltd. ë Chairman, KTT Leasing Co., Ltd. ë Director, Krungthai IBJLeasing Co., Ltd. ë Director, Interlife John Hancock Assurance Public Co., Ltd. ë Advisor to the Board of Director, BangkokExpress Public Co., Ltd. ë Director, BT Insurance Co., Ltd. ë Director, Krungthai Thanakit Public Co., Ltd.

Other Positions Director, BT Securities Co., Ltd. ë Councilor, Thailand Management Association Committee on Energy, The Thai Chamberof Commerce ë Board of Advisor, Traim Udom Suksa Parents And Teachers Association

Training The Financial and Macro Economic Effects of the new Basel Accord, ë Customer Centricity and Enterprise Agility in FinancialService-Today’s Global Industry Trends, Managing The Recovery : Challenges Ahead Directors Certification Program 8/2001

MR. CHIT CHITTIVARANONExecutive Vice President, Corporate Banking Division 1/1Appointed on June 1, 1993Age 52Education B.S. (Accounting), U.C. Berkeley, U.S.A. / M.B.A. (Finance), New York University, U.S.A.Experience Senior Loan Officer, Mitsui Manufacturers Bank ë Assistant Branch Manager, Bangkok Bank Public Co., Ltd., Los Angeles

Branch ë Assistant Vice President, Credit & Marketing Department, Siam City Bank Public Co., Ltd. ë Vice President, Bankof Asia Public Co., Ltd. ë Vice President, Credit & Marketing Department, Finance One Public Co., Ltd. ë Executive VicePresident, Credit & Marketing Department, Krungthai Thanakit Public Co., Ltd. ë Executive Vice President,MetropolitanBusiness Development Division 1, BankThai Public Co., Ltd.

Other Positions -Training -

MISS CHATSARAL ANANTAKOOLFirst Vice President, Corporate Banking Division 1/1Appointed on April 24, 2000Age 42Education Bachelor of Art (Economics) University of California Los Angeles (UCLA) ë Master of Business Administration Financial

Management Northrop UniversityExperience Reconcilement Analyst, Mitsui Bank (Loa Angeles Branch) ë Assistant Vice President, Bank of Asia Public Co., Ltd.Other Positions -Training -

MR. SOMKIAT SETHASOMPOPESenior Vice President, Corporate Banking Division 2/1Appointed on February 1, 1994Age 44Education B.A. (Economics), Thammasat University / M.B.A., Saint Louis UniversityExperience Lending Office, Asia Credit Public Co., Ltd. ë Marketing Manager, Plan Estate Co., Ltd. ë Assistant Manager, Finance One

Public Co., Ltd. ë First Vice President, Credit & Marketing Department, Krungthai Thanakit Public Co., Ltd.Other Positions -Training -

MR. KRAISORN PONGPUNExecutive Vice President, Corporate Banking Division 3/1Appointed on May 1, 2002Age 53Education B.S. (Accounting) (Hons.) Bangkok University / M.B.A. (Finance) National Institute of Development Administration and

University of North TexasExperience Financial / Pricing Analyst, UTC Mostek Corp., TX, U.S.A. ë Corporate Lending Officer, Thai Investment & Securities Public

Co., Ltd. (TISCO) Second Vice President, The Chase Manhattan Bank / Vice President, Bank of America Executive VicePresident, Thai Thamrong Finance Co., Ltd. Executive Director KGI Securities One Public Co., Ltd. ë Senior Vice President,Bank of Asia Public Co., Ltd. / Standard Chartered Bank

Other Positions -Training -

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MRS. WANIDA SUPANANTAROEKSenior Vice President, Corporate Banking Division 3/1Appointed on August 1, 2004Age 49Education B.A. (Accounting) Thammasat University / M.B.A. The University of Kansas, U.S.A.Experience Vice President, Bank of Asia Public Co., Ltd. ë Head of Investment Institutions, Standard Chartered Bank ë Head of Local

Corporates, Standard Chartered Nakornthon Bank Public Co., Ltd.Other Positions -Training -

MR. WIWAT VETAYANUKULExecutive Vice President, Corporate Banking Division 4/1Appointed on January 1, 2003Age 48Education Bachelor of Accountancy Chulalongkorn University ë Master of Business Administration Washington State UniversityExperience Senior Credit Officer The Chase Manhattan Bank ë Assistant Vice President Italian-Thai Development Co., Ltd. ë Vice

President Bank of Asia Public Co., Ltd. ë Deputy General Manager ING Bank BIBF ë Deputy Managing Director Siam CityCredit Finance and Securities Co., Ltd. ë Head of Corporate Sales Standard Chartered Nakornthon Bank Public Co., Ltd.Head of Corporate Banking Department UOB Radanasin Bank Public Co., Ltd. ë Senior Vice President BusinessDevelopment 4 Division BankThai Public Co., Ltd.

Other Positions -Training -

MR. TAKASHI KUSUMOTOExecutive Vice President, Corporate Banking Division 4/1Appointed on July 1, 2004Age 50Education Bachelor of Arts Osaka University of Foreign StudiesExperience Vice President, Daimaru New York Corporation ë President, Daimaru Communication U.S.A. Inc.Other Positions -Training University of Washington Administration and Management Program

MISS SUTEEWAN SIRISAWATFirst Vice President, Corporate Banking Division 4/1Appointed on January 1, 1998Age 47Education Bachelor of Sciences Chulalongkorn University ë Master of Business Administration(Financial Management) National

Institute of Development Administration (NIDA)Experience Credit officer, Poonpipat Finance and Securities Public Co., Ltd. ë Group Credit Manager, Dhana Siam Finance Public

Co., Ltd. ë First Vice President, Prime Finance and Securities Public Co., Ltd. ë Vice President, Krugthai Thanakit PublicCo., Ltd. ë Vice President, BankThai Public Co., Ltd. ë First Vice President, Business Development Department 8/4/1

Other Positions -Training -

MISS ONG-ORN PRUTHIKOSITFirst Vice President, Corporate Banking Division 4/1Appointed on March 16, 2003Age 41Education B.A. in Economics (English Program with Honour Distinction) Thammasat University / M.B.A. (International Business and

Marketing) SASIN Graduate Institute of Business Administration of Chulalongkorn University (Siam Commercial BankScholarship) / Ph.D. Candidate (Marketing) Keio University (Japanese Government Scholarship)

Experience Product Manager, Kao Industrial (Thailand) / Senior Team Leader, Siam Commercial Bank Public Co., LtdOther Positions Public Relations Committee of Japanese Government Scholarship Alumni / Finance Sub-Committee of Technology

Promotion Association (Thailand-Japan)Training The boss 48th by Management and Psychology Institute, Rich Dad’s Business School for Investors by Rebert Kiyosaki, The

Certified Professional Trainers Programme by Quest Group (Malaysia)

MR. SOMCHAI TOEMTRISNAFirst Vice President, Corporate Banking Division 4/1Appointed on February 1, 2003Age 45Education B.A. Faculty of Economics Thammasat University / M.A. Faculty of Economics Thammasat University / M.B.A. Faculty of

Accountancy and Business Administration Thammasat UniversityExperience FX Dealer, Siam Commercial Bank Public Co., Ltd. ë Assistant Manager, Bank of Asia Public Co., Ltd. ë Deputy Vice

President, Siam City Credit Finance and Securities Co., Ltd. ë Special Manager, The Financial Sector Restructuring Authorityë Vice President, UOB Radanasin Bank Public Co., Ltd.

Other Positions -Training -

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MRS. WIRONGRONG SUKYINGExecutive Vice President, Corporate Banking Division 5/1Appointed on August 1, 1993Age 44Education Bachelor of Accounting, Thammasat University / M.B.A. (Finance), National Institute of Development Administration (NIDA)Experience Authorized Signature / Branch Department, The Thai Military Bank Public Co., Ltd., ë Chief of Corporate Group / Corporate

Department 2, Siam Commercial Bank Public Co., Ltd. ë Senior Vice President, Credit & Marketing Department, KrungthaiThanakit Public Co., Ltd. ë Senior Vice President, Metropolitan Business Development Department 1 BankThai Public Co.,Ltd. ë Managing Director, Ksit Finance and Securities Co., Ltd.

Other Positions -Training -

MISS NOPPAMAS TAMKAONGARMFirst Vice President, Corporate Banking Division 5/1Appointed on September 16, 2002Age 45Education B. of Economics (International Economics) Chulalongkorn University ë Master of Management Sasin Graduate Institute of

Business Administration of Chulalongkorn UniversityExperience Credit Officer Thai Farmers Bank Public Co., Ltd. / Sakura Bank ë Senior Investment Analyst, First Asia Securities Public

Co., Ltd. ë Manager, Credit Agricole Indosuez (Bangkok Branch) ë Second Vice President, DBS Thaidanu Bank Public Co.,Ltd.

Other Positions -Training -

MR. NARONG ONGARTMANEERUTFirst Vice President, Corporate Banking Division 5/1Appointed on July 1 ,2003Age 44Education Bachelor of Business Administration, Thammasat University / Master of Business Administration, Chulalongkorn UniversityExperience Supervisor, Nakornthon Bank Public Co., Ltd. ë Corporate Banking Head, ING Bank Vice President & Head of Telecom

Desk, ABN Amro (Bangkok Branch) ë Senior Financial Advisor, World BankOther Positions -Training -

CORPORATE BANKING GROUP 2MR. SURIN PREMAMORNKITSenior Executive Vice President, Corporate Banking Group 2Appointed on une 16, 1993Age 57Education B.A. ( Economics in Finance ), Thammasart UniversityExperience Assistant Manager, Bangkok Bank Public Co., Ltd. ë Assistant Vice President, Credit & Marketing Division, Finance One

Public Co., Ltd. ë Senior Vice President, Credit & Marketing Department / Executive Vice President, Credit & MarketingDepartment, Krungthai Thanakit Public Co., Ltd. ë Executive Vice President, Provincial Business Development Division 7-8,BankThai Public Co., Ltd.. / Senior Executive Vice President, Provincial Business Development Group ë Director KTTLeasing Co., Ltd. ë President & Managing Director Union Asia Finance Public Co., Ltd. ë Director, BT Insurance Co., Ltd.

Other Positions Director, BT Asset Management Co., Ltd.Training -

MR. WITCHAYARAT USUPARATSenior Vice President, Corporate Banking Division 1/2Appointed on October 1, 1993Age 49Education B.A. (Economics), College of Business Administration / Executive M.B.A., Kasetsart UniversityExperience Researcher, Thai Chamber of Commerce ë Manager (Business Development Department), Thai Farmer Bank Public Co.,

Ltd. ë Vice President, Credit & Marketing Department / First Vice President, Credit & Marketing Department / Senior VicePresident, Credit & Marketing Department Krungthai Thanakit Public Co., Ltd., Senior Vice President, Metropolitan BusinessDevelopment Division 5-6, Metropolitan Business Development Division 3, BankThai Public Co., Ltd..

Other Positions -Training -

MR. CHAMNAN NGAMPOJANAVONGFirst Vice President, Corporate Banking Division 1/2Appointed on July 1, 1993Age 45Education Bachelor of Accounting, Chulalongkorn University / Master of Business Administration Kasetsart UniversityExperience Senior Credit Officer, The Siam Commercial Bank Public Co., Ltd. ë Finance Manager, Poolthip Housing Co., Ltd. ë First Vice

President, Credit & Marketing Department, Krungthai Thanakit Public Co., Ltd. ë First Vice President, Provincial BusinessDevelopment Department 7, Provincial Business Development Department 1, Provincial Business Development Department9, Business Development Department 9/5/2, BankThai Public Co., Ltd.

Other Positions Director, BT Leasing Co., Ltd.Training -

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MR. PORNCHAI SHARDRAWEEFirst Vice President, Corporate Banking Division 1/2Appointed on May 1, 2000Age 46Education Bachelor of Accounting / Master of Business Administration Chulalongkorn UniversityExperience Credit officer, Siam Commercial Bank Public Co., Ltd. ë Manager, Bank of Ayudhya Public Co., Ltd. Executive Vice President,

CL Sahaviriya Finance and Securities Co., Ltd. Vice President, Standard Chartered Nakornthon Bank Public Co., Ltd. ë VicePresident, Provincial Business Development 6, 10 Department of BankThai Public Co., Ltd.

Other Positions -Training -

MR. SUWAT SUMMASHIPVITSAVAKULExecutive Vice President, Corporate Banking Division 2/2Appointed on August 1 ,2004Age 53Education Bachelor Degree of Engineering Chulalongkorn University, Master Degree of Business Administration National Institute of

Development AdministrationExperience Senior Vice President Bank of Ayudhya Public Co., Ltd. Senior Lending Office Bangkok Bank Public Co., Ltd. / Electrical

Engineer - EGAT / Electircal Engineer - National Housing AuthorityOther Positions -Training Directors Certification Program 42/2004, Senior Executive Program (SEP) 16 by Sasin Graduate Institute of Business

Administration of Chulalongkorn University (2002), Agricultural Trade Finance in USA Sponsored by USDA (1999),Managing Problem Loans Course Presentation (by Usaid) (1997)

MR. MUNIN THAMPORNPIPATFirst Vice President, Corporate Banking Division 2/2Appointed on May 1, 2003Age 47Education Bachelor of Economics / Master of Business Administration Chulalongkorn UniversityExperience Assistant Branch Manager, Branch Manager, Credit Manage Bangkok Bank Public Co., Ltd. ë First Vice President Business

Development Department 3/2/2 BankThai Public Co., Ltd.Other Positions -Training -

DR. NERAMIT PANCHANGKAKULFirst Vice President, Corporate Banking Division 2/2Appointed on May 1 ,2004Age 49Education B.A. Economics Thammasat University / M.A. Economics Thammasat University ë M.A. Economics University of Washing-

ton USA./ Ph.D. Economics University of Colorado at BoulderExperience Vice President Industrial Credit Department, Vice President Corporate Credit Department ë First Vice President Marketing

Research and Planning Office Thai Military Bank Public Co., Ltd.Other Positions -Training -

MR. SAMCHAI BENCHAPATHOMRONGExecutive Vice President, Corporate Banking Division 3/2Appointed on June 21, 1993Age 46Education B.A. (Financial and Banking), Thammasat UniversityExperience Chief of Credit Department (Head Office), Siam Commercial Bank Public Co., Ltd. ë Senior Manager, Credit and Marketing

Department, Thana One Finance & Securities Public Co., Ltd. ë Senior Vice President, Credit and Marketing Department,Krungthai Thanakit Public Co., Ltd. ë Senior Vice President, Metropolitan Business Development Department 5, BankThaiPublic Co., Ltd. ë President & Chief Executive Officer, Dhana Siam Finance Public Co., Ltd. ë Executive Vice President,Business Development Division 3/2 BankThai Public Co., Ltd.

Other Positions -Training -

MRS. SUCHADA NA BANGCHANGFirst Vice President, Corporate Banking Division 3/2Appointed on August 16, 2003Age 49Education Bachelor of Accountancy Thamasat University ë Master of Business Administration University of Detroit Michigan USA.Experience Lending Officer Siam Commercial Bank Public Co., Ltd. Deputy General Manager Royal Bank of Cannada ë Manager

Banque Indosuez ë Director Citicapital Co., Ltd. ë Associate Director Price Waterhouse Cuper Co., Ltd. ë Vice PresidentStandard Chartered Bank

Other Positions -Training -

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MR.VORAKAN DHEPCHALERMExecutive Vice President, Corporate Banking Division 4/2Appointed on June 20, 2000Age 48Education Bachelor Degree in Business Administration (Finance), Assumption University / Master Degree in Business Administration

(Finance), University of Scranton Pennsylvania, U.S.A.Experience Securities Analyst, Thai Investment and Securities Public Co., Ltd. ë Loan Officer (Level 6), Special Project Dept., The

Industrial Finance Corporation of Thailand (IFCT) ë Senior Supervisor, Project Appraisal Dept., Thai Airways InternationalPublic Co., Ltd. ë Executive Vice President, Nava Finance and Securities Public Co., Ltd. ë Director, Risk Department, GEAsia Finance Public Co., Ltd.

Other Positions -Training -

MR. TARA RATANAPHIPHOBSenior Vice President, Corporate Banking Division 4/2Appointed on June 1, 1994Age 48Education B.A. in Economics, Dhurakijpundit University / M.S. (Development Economics), National Institute of Development

Administration (NIDA)Experience Economics Analyst, Faculty of Economic, Thammasat University ë Credit Marketing Manager, The Bank of Asia Public

Co., Ltd. ë First Vice President, Credit & Marketing Department, Krungthai Thanakit Public Co., Ltd.Other Positions -Training -

MR. VONGPAT BHUNCHAROENFirst Vice President Corporate Banking Division 4/2Appointed on May 1, 2002Age 44Education Bachelor of Economics Ramkhamhaeng University ë Master of Business Administration Internationnal Economic and Finance

Pacific States UniversityExperience Assistance Branch Manger, Bangkok Bank Tokyo Branch Japan Credit Manager / Assistant Vice President Multinational

Corporate Banking Head Office Bangkok Bank Public Co., LtdOther Positions -Training Industrial Management, Insead, Philippines. ë Japan Banking System, Tokai Bank, Japan

MR.WONGKASEM KARNTHANATSenior Vice President, Corporate Banking Division 5/2Appointed on May 15, 2000Age 45Education Bachelor of Law Thammasat University / Master of Law Chulalongkorn University / Executive Master of Business

Administration Sasin Graduate Institute of Business Administration of Chulalongkorn UniversityExperience Assistant Branch Manager, Branch Manager, Assistant Vice President and Account Manager Bangkok Bank Public Co., Ltd.Other Positions -Training -

INSTITUTIONAL BANKING GROUPMR. CHAMNARN WANGTALSenior Executive Vice President, Institutional Banking GroupAppointed on July 1, 1998Age 52Education Bachelor of Art (Biology), Saint Vincent College, Latrobe, Pennsylvania, U.S.A. / Master Business Administration (Finance),

Marshall University, Huntington, West Virginia, U.S.A.Experience Assistant Treasurer, Credit & Marketing Department, Chase Manhattan Bank, N.A., Bangkok Branch Treasury Manager,

Ciba-Geigy (Thailand) Co., Ltd. ë Project Finance Manager, Banque of Indosuez, Bangkok Branch ë Director of Finance &Administration, American Express (Thailand) Co., Ltd. ë Senior Vice President, Business Development, Bank of Asia PublicCo., Ltd. ë Senior Vice President, Head of Investment Banking Group, Multi-Credit Corporation of Thailand ë Senior VicePresident, Credit & Marketing Department, Krungthai Thanakit Public Co., Ltd. ë Executive Vice President, MetropolitanBusiness Development Division 7-8, Executive Vice President, Risk Management Division BankThai Public Co., Ltd..

Other Positions Director Millea Life Insurance (Thailand) Public Co., Ltd.Training -

MR.SUTEE LOSOPONKULExecutive Vice President, Treasury & Trading DivisionAppointed on June 1, 2000Age 45Education B.Sc. (Industrial Engineering) Prince of Songkhla University / M.B.A. (Financial Management) National Institute of

Development Administration (NIDA)Experience Production Engineer Asian Autoparts Co., Ltd. ë Senior Vice President Nakornthon Bank Public Co., Ltd. ë Head of Business

Planing and Extended Management Team, Standard Chartered Nakornthon Bank Public Co., Ltd.Other Positions -Training -

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MR. PADEJ PIROONSITExecutive Vice President, Treasury Sales DivisionAppointed on July 16, 2004Age 43Education Chartered Financial Analyst (CFA) Master of Business Administration, Chulalongkorn University ë Bachelor of Economics,

Thammasat UniversityExperience Vice President (Finance), PAKFOOD Public Co., Ltd. ë Vice President Head of Treasury Sales, DBS Thaidanu Bank Public

Co., Ltd. ë Vice President (Finance) Ucom Public Co., Ltd. ë Vice President Portfolio & fund Management Thana OneFinance & Securities Public Co., Ltd. ë Assistant Vice President Citibank

Other Positions -Training Business Opportunities in Thai Futures Market. ë Interest Rate Option Leading the Way into Futures Business.

MR. CHAIWAT MATEVELUNGSUNSenior Vice President, Structured Credit DivisionAppointed on August 16, 2000Age 43Education Bachelor of Pharmacy Chiangmai University, Master in Business Administration / University of Baltimore. Master of Science

in Finance / University of Baltimore, Associate / Thailand Insurance Institute.Experience Sale Representative, Upjohn Co., Ltd. ë Manager, S.Y.T. Drugstore Lending Officer, Thai Financial Syndicate Co., Ltd. ë

Manager, Corporate 1, Thai Rating & Information Services Co., Ltd. ë Expert, Universal and Innovative Consulting Ltd. ë FirstVice President, Risk Management Division. BankThai Public Co., Ltd.

Other Positions -Training -

MRS. DUANGCHAI VALAISATHIENExecutive Vice President, Privileged Banking DivisionAppointed on September 15, 1997Age 59Education Bachelor’s Degree in Commerce (Finance and Banking), St. Louis University, PhilippinesExperience Accounting Officer, United States Operation Mission to Thailand (USOM) ë Teller, The Chase Manhattan Bank, N.A.,

Bangkok Branch Accounting Officer, Madison National Bank at Washington D.C., U.S.A. ë Funding Officer, Wardley Finance& Securities Co., Ltd. ë Senior Manager, Funding & Marketing Department / Senior Vice President, Private BankingDepartment, Finance One Public Co., Ltd. ë Assistant Managing Director, Liabilities Management, Ekkapat Finance &Securities Public Co., Ltd. ë Senior Vice President, Funding Department, Krungthai Thanakit Public Co., Ltd.

Other Positions -Training -

RETAIL BANKING GROUPMR. SURACHAI CHITRATSENEESenior Executive Vice President, Retail Banking GroupAppointed on January 2, 2002Age 55Education B.S. (Economics), Central Missouri State University, U.S.A. / M.A. (Economics), State University of New York at Binghamton,

U.S.AExperience Vice President, Chase Manhattan Bank, Bangkok Branch ë Vice President and Head of Local Corporates and Financial

Institutions Group, Bank of America, Bangkok Branch ë Deputy Managing Director, A.G.C. (Thailand) Finance and SecuritiesCo., Ltd. (a subsidiary of the Westpac Banking Group from Australia) ë President, Premier Finance and Securities Co., Ltd.Executive Vice President and Head of Corporate Banking Division, Bank of Asia Public Co., Ltd ë President, BT InsuranceCo., Ltd.

Other Positions Director, BT Insurance Co., Ltd. ë Director, BT Leasing Co., Ltd. ë Director, BT WorldLease Co., Ltd.Training -

MR. TADA CHARUKITPAISARNExecutive Vice President, Retail Banking DivisionAppointed on September 1, 2004Age 51Education Bachelor of Science Chulalongkorn University ë Master of Journalism North Texas State UniversityExperience Product Manager Johnson & Johnson Co., Ltd. ë Account Director Ogilvy & Mather Co., Ltd. ë Vice President & Card

Business Manager Citibank ë Executive Vice President Bank of Ayudhaya Pablic Co., Ltd. ë Executive Vice President Bankof Asia Public Co., Ltd. ë Senior Vice President & Consumer Banking Group Head of DBS Thai Danu Bank Public Co., Ltd.

Other Positions -Training -

MR.SIRIYOT SRISUKSAWADIExecutive Vice President, Branch Services and Operations DivisionAppointed on April 16, 2000Age 47Education B.Sc., in Electronic Data Processing, Chulalongkorn University / M.A., in Marketing The Joint Education Program, University

of Gothenburg, Sweden’s Institute for Hogre Marknadsforingsutbildning (IHM) and Thammasat UniversityExperience Country Technology Head, Vice President Citibank (Thailand), Executive Vice President-Operations TSFC Securities Ltd.,

Chief Information Officer GE Capital (Thailand) Ltd.

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Other Positions -Training -

MR. NUEKRUK BAINGERNExecutive Vice President, Retail Credit Operations & E-Banking DivisionAppointed on February 7, 2000Age 51Education Bachelor of Commerce, Chulalongkorn University, M.B.A. University of Detroit, Michigan U.S.A.Experience Vice President-Citibank N.A. Bangkok, Vice President-Citicorp Finance & Securities (Thailand) Ltd. ë Senior Vice

President-Multi-Credit Corporation of Thailand Public Co., Ltd. ë Executive Vice President-Bank of Ayudhya Public Co., Ltd.Other Positions -Training -

MRS. BOONYAPAK WANICHPANSenior Vice President, International Business and Investor Services DepartmentAppointed on July 1, 2004Age 49Education B.A., (Education) Chulalongkorn University / Master of Management SASIN Graduate Institute of Business Administration

of Chulalongkorn UniversityExperience Assistant Manager-Trade Finance Services Standard Chartered Bank; Manager, Import & Export The Hongkong and Shanghai

Banking Corporation Limited. ë Manager-Head of Operations and Correspondent Banking Credit Lyonnais BangkokInternational Banking Facility (BIBF) ë Managing Director Thai Danu-DBS Co., Ltd. ë Senior Vice President, InternationalBanking Department Bangkok Bank of Commerce Public Co., Ltd. ë Vice President- Loan Accounting Department BangkokCommercial Asset Management Co., Ltd. ë Senior Vice President-International Banking Department BankThai PublicCo., Ltd. ë Senior Vice President-Investor Services Department DBS Thai Danu Bank Public Co., Ltd. ë Senior VicePresident-Treasury Operations and Investor Services Department BankThai Public Co., Ltd.

Other Positions -Training -

MR. TAWICH VIRANGKURSenior Vice President, Electronic Banking Service DepartmentAppointed on December 16, 2002Age 43Education B.Sc. Chemical Engineering University of Tulsa, U.S.A. M.Sc. Management Southern Nazareen University, U.S.A.Experience Marketing Manager Thai Oil Co., Ltd. / Thai Carbon Product Co., Ltd. ë Vice President, Point Asia Dot Com, Head of

Strategic Planning Unit Thai Tokai Carbon Product Co., Ltd.Other Positions -Training -

MR. SURIN PAKARALEETORNSenior Vice President, Retail Credit Operations & Collection DepartmentAppointed on November 1, 2005Age 40Education Bachelor of Economics Bangkok UniversityExperience Staff Collection, Bangkok Bank Public Co., Ltd. ë Enforcement Manager, TA Orange, (Bangkok) Co., Ltd. ë Recover

Manager, Citibank ë Bangkok Collection Department Head, UOB Radanasin Bank Public Co., Ltd. ë Vice President, Stand-ard Chatered Nakornthon Bank Public Co., Ltd.

Other Positions -Training -

MR. CHANIN VEERAWANFirst Vice President, Domestic Banking Operations DepartmentAppointed on October 16, 1990Age 54Education B.B.A. (Money & Banking), Thammasat University / M.B.A. (Administration), Kasetsart UniversityExperience Senior Auditor 2, Bangkok Bank Public Co., Ltd. ë Vice President, Branch Administration Department / Deposit Promotion

and Business Development Department, BankThai Public Co., Ltd.Other Positions -Training -

BUSINESS SUPPORT GROUPMR. EKAJAI TIVUTANONDSenior Executive Vice President, Business Support GroupAppointed on October 1, 1999Age 53Education Bachelor of Law (LLB) (1st class honour), Thammasat University / Barrister at Law / Master of Law (LLM), Columbia

University, New York, U.S.A.Experience Public Prosecutor, Department of Public Prosecution ë Legal and Public Affairs Manager, Thai Shell Exploration and

Production Co., Ltd. ë Director of 12 Associated companies of Shell in Thailand ë Director of Rayong Refinery Co., Ltd. ëMember of Executive Committee / Human Resources Director and Corporate Legal Manager, Shell Companies in Thailand

Other Positions Director, BTInsurance Co., Ltd.Training -

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MR. PARAADORN PHAKAPHATExecutive Vice President, Legal DivisionAppointed on January 1, 2000Age 51Education Bachelor of Law / Master of Law, Chulalongkorn University / Master of Science in Justice (M.S.J), The American University,

Washington D.C., U.S.A. (Under the Royal Thai Government Scholarship for the requirement of the Ministry of Justice) /Training in Legal Information System at the University of Santa Clara, Ca., / Certificate in Computer On-line System Design,The Okinawa International Center, Japan, by JICA’s scholarship (First rank in scholarship nominee selection exam)

Experience Legal Official - Office of the Rector, Kasetsart University (First rank in recruitment exam) ë Legal Official and AssistantSecretary to the Legislature Drafting Commission, Office of The Council of State (First rank in recruitment exam) ë Traineein the Case Acceleration Program, the Superior Court, Washington D.C., Exchange scholar, Law School, the University ofSanta Clara, Ca., Legal Official / Deputy Director - Judicial Information Service Center, The Ministry of Justice ë VicePresident, The Industrial Finance Corporation of Thailand, Former Lecturer, the Graduate School, Chulalongkorn University

Other Positions -Training Euromoney’s Annual International Financial Law School (Singapore), Euromoney’s Seminar on Swaps and Derivatives

(Hong Kong), Euromoney’s Training on In-house Law Office Management (Hong Kong), International Chamber ofCommerce’s Seminar on International Commercial Arbitration. (Paris)

MR. SONGWUD BUAKHEMExecutive Vice President, Asset Management DivisionAppointed on December 3, 1990Age 52Education Bachelor of Accounting / Bachelor of Law, Thammasat University / M.B.A., Kasetsart UniversityExperience Senior Auditor, Bangkok Bank Public Co., Ltd. ë Division Head, Bangkok Bank Public Co., Ltd. ë First Vice President,

BankThai Public Co., Ltd. Executive Vice President, Provincial Business Development Division 1-2, BankThai Public Co.,Ltd.

Other Positions Director U T M Advisory & Capital Management Co., Ltd. ë Director Thai Baroda Industries Ltd. ë Director SuetrongConstruction Co., Ltd.

Training -

MR. BORIPAT KULCHARTCHAISenior Vice President, Non-Performing Loan Management TeamAppointed on March 15, 1995Age 52Education Bachelor of Commerce, Thammasat University / Master of Business Administration, Kasetsart UniversityExperience Credit Officers, Thai Military Bank ë Chief of Business Development, Industrail Finance Corporation of Thailand ë Assistant

Credit Manager, Union Asia Finance Public Co., Ltd. ë Vice President, ITF Finance & Securities Public Co., Ltd. ë ExecutiveVice President, IFCT Finance & Securities Public Co., Ltd. ë First Vice President, Metropolitan Business DevelopmentDepartment 8, Metropolitan Business Development Department 10 Provincial, Business Development 1 BankThai PublicCo., Ltd..

Other Positions -Training -

MR. SONTHIT CHUKATEFirst Vice President, Non-Performing Loan Management TeamAppointed on August 1, 1995Age 44Education Bachelor of Law, Thammasat university / M.B.A., Indiana University of Pennsylvania, U.S.A.Experience Manager, Bangkok Bank of Commerce Public Co., Ltd. ë Assistant Vice President, Bookclub Finance & Securities Public Co.,

Ltd. ë Vice President, Nava Finance Public Co., Ltd.Other Positions -Training -

MR. CHALERMPOL DECHARITFirst Vice President, Non-Performing Loan Management TeamAppointed on March 1, 1995Age 43Education Bachelor of Accounting (Costing), Chulalongkorn University ë Master of Business Administration Kasetsart UniversityExperience Credit Officer, Branch Credit Department, The Siam Commercial Bank Public Co., Ltd. ë Chief of Credit Marketing Section,

Bara Finance & Securities Co., Ltd. ë Assistant Vice President, Real Estate Project Department, Kiatnakin Finance &Securities Public Co., Ltd. ë Vice President, Branch Credit Department / First Vice President, Credit & Marketing Department,Krungthai Thanakit Public Co., Ltd. ë First Vice President, Provincial Business Development Department 6, BankThai PublicCo., Ltd. ë Managing Director, Bangkok Asian Finance Co., Ltd.

Other Positions -Training -

MR. SUCHART TANAKULRUNGSONFirst Vice President, Non-Performing Loan Management TeamAppointed on June 16, 1993Age 50Education B.A. (Economics), Thammasat University / M.B.A., Tarleton State University, Texas, U.S.A.

119

Experience Assistant Vice President, Asia Credit Public Co., Ltd. ë Senior Manager, Finance One Public Co., Ltd. ë First Vice President,Credit & Marketing Department, Krungthai Thanakit Public Co., Ltd. ë First Vice President, Metropolitan BusinessDevelopment Department 2, BankThai Public Co., Ltd..

Other Positions -Training -

MR. SARNANDA LEKHYANANDAFirst Vice President, Non-Performing Loan Management TeamAppointed on November 2, 1992Age 47Education B.A. of Accounting, St. Leo College, Florida, U.S.A. / M.B.A., Florida Institute of Technology, U.S.A.Experience Account Officer / Assistant Vice President, Siam Commercial Bank Public Co., Ltd. ë Vice President, Dhana Siam Finance

Public Co., Ltd. ë First Vice President, Metropolitan Business Development Department 7, BankThai Public Co., Ltd..Other Positions -Training -

MR. SATHIEN KASETTRATADFirst Vice President, Non-Performing Loan Management TeamAppointed on May 1, 1994Age 51Education B.A., Ramkhamhaeng UniversityExperience Assistant Manager, Credit Bangkok Bank Public Co., Ltd. ë First Vice President, Credit & Marketing Department, Krungthai

Thanakit Public Co., Ltd. ë First Vice President, Metropolitan Business Development Department 9, BankThai PublicCo., Ltd.

Other Positions -Training -

MR. SUWAT K.SRISUWANFirst Vice President, Non-Performing Loan Management TeamAppointed on November 1, 1994Age 58Education Bachelor of Law Ramkhamhaeng UniversityExperience First Vice President Union Asia Finance Public Co., Ltd. ë Vice President BankThai Public Co., Ltd.Other Positions -Training -

MR. THITI SUPAMANEESenior Vice President, Credit Operations DepartmentAppointed on June 1, 1996Age 47Education Bachelor of Accounting, Chiangmai UniversityExperience Head office Internal Audit, Provincial Branch Internal Audit, Metropolitance Branch Internal Audit, Head of Computer

Informations and Operations Audit & Acting Head Of Computer Systems Audit / Head of Computer Informations andOperations Audit Computer Systems Audit Specialist, The Bank of Asia Public Co., Ltd. ë Head of E.D.P.Audit, Finance OnePublic Co., Ltd. Thana One Finance & Securities Co., Ltd. ë Vice President, Internal Audit Office, Bara Finance and SecurityPublic Co., Ltd. Instructor / Lecturer for Master Degree Student, Setting Up Control Systems, Kasembandit University ë FirstVice President, Finance Operations Department / Special Project Group, Krungthai Thanakit Public Co., Ltd. ë Director NavaFinance Public Co., Ltd.

Other Positions -Training -

MR. SOMKEART SRISUWANSenior Vice President, Network and Office Management DepartmentAppointed on June 1, 1993Age 47Education Bachelor of Accounting, Chulalongkorn University, Master of Business Administration, Kasetsart UniversityExperience Programmer, Loxley (Bangkok) Co., Ltd. ë Programmer, American Computer Center Co., Ltd. ë System Analysis Computer

Department Bank of Ayudhaya Public Co., Ltd. ë Assistant Vice President, Computer Department, Asia Credit Public Co., Ltd.Senior Manager, System Department (Computer), Thana One Co., Ltd. ë Senior Vice President, System Department(Computer), Krungthai Thanakit Public Co., Ltd.

Other Positions -Training -

MR. SUCHART CHANDSONGSANGSenior Vice President, Credit Administration DepartmentAppointed on September 1, 1993Age 57Education Bachelor of Law, Thammasat UniversityExperience Officer, Legal Department, Nailart Co., Ltd. ë Assistant Manager, Credit & Marketing Department, Bangkok Bank Public Co.

Ltd., Surawong Branch ë Senior Vice President, Credit Administration Department, Krungthai Thanakit Public Co., Ltd.Other Positions -Training -

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RISK MANAGEMENT AND STAFF CREDIT GROUPMR. MANIT JEERADITSenior Executive Vice President, Risk Management and Staff Credit GroupAppointed on August 1, 1998Age 57Education B.A. in Economics / Accounting (Summa Cum Laude) Claremont McKenna College, California M.B.A. coursework in finance

Washington State UniversityExperience Reporter & Re-Writer, The Bangkok Post City Editor, The Nation Assistant Treasurer, Credit & Marketing, The Chase

Manhattan Bank, N.A., Bangkok Branch ë Executive Vice President, Thailand Tantalum Industry Co., Ltd. ë Executive VicePresident, Credit & Marketing, Finance One Public Co., Ltd. ë Director and General Manager, Thana One Finance &Securities Public Co., Ltd. ë Managing Director, Mahathanakit Finance & Securities Co., Ltd. ë Vice Chairman, PornananProperty Group Co., Ltd. ë Advisor to the President, Krungthai Thanakit Public Co., Ltd.

Other Positions Chairman, BT Asset Management Co., Ltd.Training -

MRS. PANUTE NA CHIANGMAIExecutive Vice President, Group Deputy - Risk Management and Staff CreditAppointed on September 1, 2005Age 49Education Bachelor of Education, Chulalongkorn University ë MBA (Finance), University of Wisconsin-Madison ë Master of Science

(Marking), University of Wisconsin-MadisonExperience Lecturer, National Institute of Development Administration ë Vice President, Citibank N.A., Bangkok Branch First Senior

Executive Vice President, Ayudhaya Investment and Trust Public Co., Ltd. ë Executive Vice President, GE Money FinancePublic., Ltd.

Other Positions -Training -

MR. SOMSAK CHAIYADEJSenior Vice President Risk Management DivisionAppointed on June 1, 2001Age 44Education Bachelor of Economics, Ramkhamhaeng University ë Master of Economic Development, Institute of Development Adminis-

trationExperience Foreign Exchange Dealer / Treasury Office, Krung Thai Bank Public Co., Ltd. ë Vice President / Investment Banking,

Nakornthn Bank Public Co., Ltd. ë Team Leader / Capital Markets, Standard Chartered Nakornthon Bank Public Co., Ltd.Other Positions -Training -

CORPORATE AFFAIRS DIVISIONMR. THAPHOP KLEESUWANSenior Vice President, Office of the PresidentAppointed on September 9 ,1999Age 45Education Bachelor of Law, Chulalongkorn University / Barrister-at-Law, Thai Bar Association / Master of Laws, De Paul University,

U.S.A.Experience Lawyer of Pratan Duangrat Law Office, Coopers & Lybrand Co., Ltd. ë Associate lawyer of Baker & Mc.Kenzie and Siam

Premier International Law Office ë Vice President, Consulting Division Legal Department BankThai Public Co., Ltd. ë FirstVice President, Asset Management Department BankThai Public Co., Ltd.

Other Positions -Training Company Secretary Program, Thai Institute of Directors

MRS. THAPTHIM SINGHASENISenior Vice President, Public Relations OfficeAppointed on September 1, 1989Age 53Education B.A. in Education, Silpakorn University / M.A. in Communication, Chulalongkorn UniversityExperience Director of Public Relations, Bank for Agriculture and Agricultural Co-Operatives ë Second Vice President, Office of The

President, BankThai Public Co., Ltd.Other Positions -Training -

MISS UTHAIWAN ANUCHITTANUKULFirst Vice President, Planning OfficeAppointed on September 1, 1999Age 32Education Bachelor Degree of Engineering Chulalongkorn University ë Master of Engineering (Intelligence Science) Tokyo Institute of

TechnologyExperience Business Consultant Arthur Anderson SGV-NA Thalang & Co., Ltd, ë Planning Officer PTT Public Co., Ltd.Other Positions SEC Certified Financial AdvisorTraining -

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TECHNOLOGY DIVISIONPOL.CAPT. DANAI KHAOPHAISARNExecutive Vice President, Technology DivisionAppointed on April 2, 1990Age 54Education B.S., Chulalongkorn University, M.B.A., Kasetsart UniversityExperience Assistant Vice President, Computer Department, Siam City Bank Public Co., Ltd. ë First Assistant Vice President, Computer

Department, Bank of Ayudhaya Public Co., Ltd ë Vice President/ Senior Vice President, Information Technology Department,BankThai Public Co., Ltd.

Other Positions -Training -

MR.PAIBOON SIRICHUCHNINFirst Vice President, Technology Productions DepartmentAppointed on April 16, 1991Age 46Education Bachelor Degree in Science (Statistics) Chiang Mai UniversityExperience Computer Programmer Bangkok Bank Public Co., Ltd. ë System Analyst Sayam Bank Limited Chief of Online Application

Division Siam City Bank Public Co., Ltd. ë Assistant Vice President , Vice President BankThai Public Co., Ltd.Other Positions -Training -

MRS. SUREE MONGKOLNCHAIARUNYASenior Vice President Technology Development DepartmentAppointed on July 16, 2005Age 46Education Bachelor of Science (Statistics) Chiangmai University in 1982 ë Master of Business Administration in Business

Communication (English Program) The University of The Thai Chamber of Commerce in 1997Experience Programmer, Analyst - Info-Data Systems Co., Ltd ë Programmer Analyst - Asia Trust Bank. ë Head of Application

Development Unit - Sayam Bank ë Senior Software Specialist - Krung Thai Bank ë Senior System Analyst, Software ProjectManager - Philips Electricity of Thailand ë Integration Manager, Senior Project Manager, Project consultant Digital EquipmentCorporation (Thailand) Co., Ltd. ë Technology Integration Unit (TIU) Manager, Resource Manager, Program ManagementOffice (PMO) Manager Compaq Computer Corporation (Thailand) Ltd. ë Program Management Office (PMO) ManagerHewlett-Packard (Thailand) Co., Ltd. ë Project Manager, Product Manager - Krung Thai Computer Services Co., Ltd.

Other Positions -Training Project Management University (PMU) in 2001, 2000 (Malaysia, Singapore) ë The Bankers to Bankers Conference 2000

(Spain) ë The 7-Habits of Highly Effective People Compaq Management Conference (Australia) ë Software ProjectManagement & Estimation ë ESI - Risk Management Leadership Excellence (Singapore) ë SI Institue (Singapore) ëContract Negotiation (Hong Kong) ë Banque Asia Seminar (Malaysia) ë Management Excellence Program (Singapore) ëSI Foundation (Hong Kong)

MR.PRACHAWAN PRAIMANEEFirst Vice President, Project Management OfficeAppointed on January 1 ,2004Age 40Education Bachelor of Education (Science, Math) Srinakharinwirot University Bangsaen Chonburi, Master of Sciences Information

Technology University of Warwick Experience Engineer and Marketing Engineer Honeywell Southeast Asia Ple., SingaporeResident Engineer in Thailand For Honeywell South East Asia Honeywell Senior Marketing Engineer Yamatake-HoneywellHead office, Tokyo /Bangkok Senior System Analyst Rayong Refinery Co,. Ltd. ë Information Management ManagerConoco (Thailand) Co., Ltd. First Assistant Vice President (Marketing) Bank of Ayudhya Public Co., Ltd.

Other Positions -Training -

FINANCIAL CONTROL DIVISIONMR.PRASERT WANGRATTANAPRANEEFirst Executive Vice President, Financial Control DivisionAppointed on July 1, 2000Age 55Education Bachelor of Accounting (Honor) / Bachelor of Law Thammasat UniversityExperience Manager, Senior Vice President Accounting Department Bangkok Bank Public Co., Ltd.Other Positions Director, BT Business Consulting Co., Ltd. ë President of Accounting Group, Thai Bankers Association The Sub - Committee

on Finance, The Senate Kingdom of Thailand ë Vice President of The Sub - Committee on Communications Group inCommittee on Privatization of the state enterprises, The Senate Kingdom of Thailand The Sub - Committee on StandardAccounting, National Corporate Governance Committee ë Vice President of The Sub - Committee for the Selection of theMember of The National Economic and Social Advisory Concil, Senior Group

Training -

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MISS PENSRI PHABHAPOTESenior Vice President, Financial Accounting and Budgeting DepartmentAppointed on November 16, 2001Age 45Education Bachelor of Accounting Chulalongkorn University ë Higher Diploma in Auditing Thamasat University Master of Accounting

Thamasat UniversityExperience Manager Deloitte Touche Tohmutsu (Jaiyos & Co.) ë Manager Thai taiyo Group Co., Ltd. ë Business Advisor such as

Import-Export Property, Manufacturing Industry and Service ë Vice President, Capital Markets 1-3 Division, BankThaiPublic Co., Ltd. ë First Vice President, BT Business Consulting Co., Ltd.

Other Positions Certified Public Accountant of ThailandTraining -

MR. KAMOL RUANGMANAMONGKOLSenior Vice President, Management Accounting and Information DepartmentAppointed on November 1, 1995Age 49Education B.A. (Marketing), Ramkhamhaeng University / M.B.A., East Tennessee State University, U.S.A.Experience Associate Consultant, SGV-NA Thalang & Co., Ltd. ë EDP. Manager, First Bangkok City Finance Public Co., Ltd. (Hong

Kong) ë Senior Consutlant, Tara Siam Limited ë Associate Director, Tara Siam Business Information Co., Ltd. ë VicePresident Corporate Planning Department Krungthai Thanakit Public Co., Ltd.

Other Positions -Training -

HUMAN RESOURCES MANAGEMENT DIVISIONMR. PHONGSUREE BUNNAGExecutive Vice President, Human Resources Management DivisionAppointed on December 1, 1999Age 60Education Northeast Missouri State University, U.S.A. - B.A./ Graduate Institute of Business Administration (GIBA), Chulalongkorn

University - M.M.Experience Personnel Manager, Signetics (Thailand) Co., Ltd. ë Vice President - Personnel Manager, The Chase Manhattan Bank ë

Human Resources Director, Colgate Palmolive (Thailand) Co., Ltd. ë Corporate Personnel Director, Thai Oil Co., Ltd. ë VicePresident - Country Human Resources Manager, Citibank ë Executive Vice President - Human Resources Group Head,Bank of Asia (Public Co.,) Ltd.

Other Positions Director, BT Business Consulting Co., Ltd. , Sub-Committee Assets Capitalization Bureau (PO)Training -

INTERNAL AUDIT DEPARTMENTMR.PATOM AMORNDECHAWATExecutive Vice President, Compliance & Audit DivisionAppointed on August 1, 2000Age 48Education Bachelor Degree of Accounting Chulalongkorn University / Bachelor Degree of Law Thammasat University / Master Degree

of Accounting Thammasat UniversityExperience Internal Auditor Poonphol Co., Ltd. ë (Trading Company), Examiner Bank of Thailand, Vice President Dynamic Eastern

Finance and Securities (1991) Public Co., Ltd. ë Senior Vice President Wallstreet Finance and Securities Public Co., Ltd.,ë Internal Audit Manager Thai Summit Auto Part Industry Co., Ltd., ë Auditor The Financial Sector Restructuring Authority(FRA), Vice President Nava Vickers Ballas Securities Co., Ltd.

Other Positions -Training -

MR. CHANON CHOTEVIJITFirst Vice President, Bangkok Metropolitan Branch Management TeamAppointed on January 16, 2001Age 46Education Bachelor of Economics (2nd Class honour) Chulalongkorn University / Master of Economics National Institute of

Development Administration (NIDA)Experience Researcher Siam City Bank Public Co., Ltd. ë Marketing Manager Corporate Credit Department Bank of Asia Public Co.,

Ltd. ë Branch Manager Bank of Asia Public Co., Ltd. ë Regional Manager Region 6,7 Area Manager, Bang Bon Area OfficeBankThai Public Co., Ltd.

Other Positions -Training -

MR. SURACHAI JANABOONVice President, Bangkok Metropolitan Area 6Appointed on December 1, 2005Age 41Education Bachelor of Business Administration Ramkamhaeng UniversityExperience Account Officer, Thai Military Bank Public Co, Ltd. ë Credit Manager, Muang Thong Trust Finance and Seccurities Co., Ltd.

Branch Manager, Standard Chatered Nakornthon Bank Public Co., Ltd. / Bank of Ayudhya Public Co., Ltd. ë Thaidanu BankPublic Co., Ltd.

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Other Positions -Training -

MRS. HATHAITIP HENGTRAKULFirst Vice President, Provincial Branch Management TeamAppointed on December 1, 2005Age 45Education Bachelor of Economics, Thammasat UniversityExperience Vice President, Bank of Asia Public Co., Ltd.Other Positions -Training Change for Success

MR. RUANGSIT YONGPRAPHATVice President, Provincial Area 3Appointed on January 3, 1995Age 47Education Bachelor of Economics Ramkhamhaeng University, Master of Business Administration Khon Kaen UniversityExperience Assistant Branch Manager Thai Farmers Bank Public Co., Ltd. / Credit Branch Manager Dhana Siam Finance and Securities

Public Co., Ltd. ë Branch Manager Nong Khai Branch Area Manager, Khon Kaen Area Office Ubon Ratchatani Area OfficeBankThai Public Co., Ltd.

Other Positions -Training -

MR. PRASONG AUESATIDVONGVice President, Provincial Area 5Appointed on May 1, 1995Age 47Education Bachelor of Accounting Ramkhamhaeng UniversityExperience Second Branch Manager Thai Military Bank Public Co., Ltd. / Credit Branch Manager Krungthai Thanakit Public Co., Ltd. ë

Area Manager Hatyai Area Office BankThai Public Co.,Ltd.Other Positions -Training -

MR. KOWIT NUALRODVice President, Provincial Area 6Appointed on May 1, 1995Age 42Education Bachelor of Business Administration (Marketing) Master of Business Administration Ramkhamhaeng UniversityExperience Assistant Credit Manager Thai Military Bank Public Co., Ltd. ë Branch Manager Krungthai Thanakit Public Co., Ltd. ë Area

Manager Surat Thani Area Office / Phuket Area Office BankThai Public Co., LtdOther Positions -Training -

MR. SUPHAVICH DEEWONGPHAIBULArea Manager, Ngamwongwan Area OfficeAppointed on September 1, 2004Age 44Education Bachelor of Business Administration Bangkok UniversityExperience Manager Small and Medium Enterprise Development Bank of Thailand ë Assistant Manager Bangkok Bank Public Co., Ltd.Other Positions -Training -

MR. WITTAYA NUNTANAKOMArea Manager, Charansnitwongse Area OfficeAppointed on November 1 , 2004Age 45Education Bachelor of Business Administration Krirk UniversityExperience Branch Manager Bangkok Bank Public Co., Ltd. ë Area Manager Nong Khae Area Office BankThai Public Co., Ltd.Other Positions -Training -

MR. KRAIWUT DOLTADAArea Manager, Bangna Area OfficeAppointed on November 17, 1999Age 43Education Bachelor of Science Kasetsart University / Bachelor of Economics Ramkhamhaeng University / Master of Economics

National Institute of Development AdministrationExperience Chief of Credit Analysis Siam Commercial Bank Public Co., Ltd. ë Vice President Cathay Trust Co., Ltd. ë Finance Manager

Thama Preeda Co., Ltd. / Cathay Leaseplan Co., Ltd.Other Positions -Training -

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MR. PASSAPOL SIRIKULBODEEArea Manager, Bangna-Trad Area OfficeAppointed on July 1, 2005Age 48Education Bachelor of Economics Chulalongkorn University ë Master of Business Administration Thamasat UniversityExperience Manager, SME and Financial Advisory Center Managing Director, Siam Engineering & Heavy Industries Co.,Ltd. ë Thai

Pattana Industries Co., Ltd. ë Loan Officer, KasikornBank Public Co., Ltd. ë Senior Loan Officer, Siam City Bank Public Co.,Ltd. ë Assistant Vice President, Bank of Asia Public Co., Ltd.

Other Positions -Training -

MISS KANKATE KANCHANOMAIArea Manager, Bang Bon Area OfficeAppointed on August 1, 2005Age 40Education Bachelor of Business Administration Ramkhamhaeng University ë Master of Business Administration Dhurakijpundit

UniversityExperience Branch Manager Bangkok Bank Public Co., Ltd.Other Positions -Training -

MR. CHAOWALERT PUNJAWASARUCHArea Manager, New Phetchburi Area OffficeAppointed on October 3 ,1992Age 47Education Master of Public Administration Burapha UniversityExperience Credit Manager Siam Commercial Bank Public Co., Ltd. ë Assistant Vice President Union Asia Finance Public Co., Ltd. ë

Vice President Nava Finance and Securities Public Co., Ltd. ë Deputy Area Manager New Phetchburi Offfice BankThai PublicCo., Ltd.

Other Positions -Training -

MR. PARKPOOM HEMARAKSHAArea Manager, Jawarad Area OfficeAppointed on November 1, 1999Age 42Education Bachelor of Economics Ramknamhaeng University ë Master of Economics Nationnal Institute of Development AdministrationExperience Finance Manager East Asia Textile Co., Ltd. ë NEC (Thailand) Co., Ltd. ë Singer (Thailand) Co., Ltd. Bank of Asia (Public)

Co., Ltd. ë The Siam Sanwa Industrial Credit (Public) Co., Ltd.Other Positions -Training Problem Solving and Decision Making, Trade Finance

MR. SUNK SAPPHANSAENArea Manager, Yannawa Area OfficeAppointed on March 17 , 1997Age 43Education Bachelor of Law Thamasat University / Thai Bar Thai Bar AssociationExperience Branch Manager Nakorn Luang Factoring Public Co., Ltd. ë Assistant Kasikorn Bank Public Co., Ltd. ë Branch Manager,

Deputy Area Manager / Area Manager Bankthai Public Co., Ltd.Other Positions -Training -

MR. BUNJHOB SIRIRATLANAKUMWONGArea Manager, Rangsit Area OfficeAppointed on May 1, 2005Age 45Education Bachelor of Art General Management Rajabhat Institute Suan SunandhaExperience Public Relation Officer Y.M.C.A ë Association Branch Manager, Bangkok Bank Public Co., Ltd.Other Positions -Training -

MR. SURIYON MANAWAPATArea Manager, Rajadamnern Area OfficeAppointed on January 3, 1995Age 47Education Bachelor of Business Administration The University of The Thai Chamber of CommerceExperience Group Manager Siam Commercial Bank Public Co., Ltd./ General Manager Thai Barge Container Services Co., Ltd. ë Vice

President Thai Summit Finance and Securities Co., Ltd. ë Vice President, Metropolitan Business Development 3,7Department BankThai Public Co., Ltd.

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Other Positions -Training Yobex 4, Credit Training, Fundamental Guide, Problem Solving and Decision Making

MRS. LAVAL SINGHAMANYArea Manager, Ladprao Area OfficeAppointed on June 1, 2001Age 53Education Bachelor of Business Administration The University of The Thai Chamber of CommerceExperience Lending Office, Asia Credit Public Co., Ltd. ë Lending Manager, Finance and Securities Co., Ltd. ë Vice President, Asset

Management Department Siam City Bank Public Co., LtdOther Positions -Training -

MR. PAKORN PRECHAPORNArea Manager, Sathon Area OfficeAppointed on January 3, 1995Age 46Education Bachelor of Economics Kasetsart University / Master of Economics National Institute of Development Administration (NIDA)Experience Second Branch Manager Thai Military Bank Public Co., Ltd. ë Instructor Wongchavaritkul University / Sripatum University,

Branch Manager Kluaynamthai Branch / Lumpini Branch BankThai Public Co., Ltd.Other Positions -Training -

MR. CHAIYAN ARUNRUNGSAWATArea Manager, Nong Khaerm Area OfficeAppointed on March 16, 2005Age 38Education Bachelor of Arts Kasetsart University ë Master of Business Administration Ramkhamhaeng UniversityExperience Branch Manager Bangkok Bank Public Co., Ltd.Other Positions -Training -

MR. SAKOLPAT WONGCHARTLANGArea Manager, Huey Kwang Area OfficeAppointed on June 16 , 2002Age 43Education Bachelor of Business Administration Assumption University /Master of Business Administration Bangkok UniversityExperience Assistant Branch Manager Kasikorn Bank Public Co., Ltd. ë Branch Manager BankThai Public Co., LtdOther Positions -Training -

MR. PREECHA KAROONVATTANAArea Manager, Chon Buri Area OfficeAppointed on July 1, 1996Age 44Education Bachelor of Arts Ramkhamhaeng University / Master of Business Administration Sripatum UniversityExperience Assistant Branch Manager Thai Framers Bank Public Co., Ltd. ë Branch Manager Krungthai Thanakit Public Co., Ltd. ë

Branch Manager Chon Buri Branch BankThai Public Co., Ltd.Other Positions -Training -

MR. THANADECH KANOKYURAPANArea Manager, Nakhon Ratchasima Area OfficeAppointed on December 16, 1994Age 41Education Bachelor of Commerce Thammasat University / Master of Business Administration Ramkhamhaeng UniversityExperience Account Officer Kasikorn Bank Public Co., Ltd. ë Loan Officer (Level 6) The Industrial Finance Corporation of Thailand

(IFCT) ë Credit Branch Manager, Krungthai Thanakit Public Co., Ltd. ë Branch Manager, Suranaree sub-branch, BankThaiPublic Co., Ltd.

Other Positions -Training -

MR. SOMPHOP PHUANGPHONGArea Manager, Nakhon Sawan Area OfficeAppointed on November 1, 1994Age 49Education Bachelor of Economics, Kasetsart UniversityExperience Assistant Branch Manager Bangkok Bank Public Co., Ltd., Branch Manager Krungthai Thanakit Public Co., Ltd.Other Positions -Training -

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MR. PRADIT LIMSAWASArea Manager, Phetchburi Area OfficeAppointed on December 1, 2002Age 49Education Bachelor of Business Administration Sukhothai Thamathirat University / Master of Public Administration National Institute

of Development AdministrationExperience Branch Manager Thai Farmers Bank Public Co., Ltd. ë Assistant Vice President Metropolitan Business Department 7 BankThai

Public Co., Ltd.Other Positions -Training -

MR. ANUGUL PHINIJNAIArea Manager, Phar Nakhon Si Ayutthaya Area OfficeAppointed on January 3, 1995Age 51Education Bachelor of Business Administration (Money & Banking) Rajabhat Institute ThepsatriExperience Assistant Branch Manager, kasikorn Bank Public Co., Ltd. ë Credit Branch Manager, Dhana Siam Finance and Securities

Public Co., Ltd. ë Branch Manager BankThai Public Co., Ltd.Other Positions -Training -

MRS. DUANGPORN WIWATTANAWARANGArea Manager, Samut Sakhon Area OfficeAppointed on April 1, 2003Age 46Education Bachelor of Accounting Ramkhamhaeng UniversityExperience Branch Manager Thai Military Bank Public Co., Ltd. ë Branch Manager Samut Sakhon Branch BankThai Public Co., LtdOther Positions -Training Bankthai’s Performance Management System, Leading the Service Team, Service from The Heart

MR. CHEERAPAT PRAWATArea Manager, Surat Thani Area OffficeAppointed on August 1 , 2003Age 46Education Bachelor of Economics Ramkhamhaeng UniversityExperience Credit Officer Asok international Co., Ltd. ë Branch Manager Bangkok Bank Public Co., Ltd. ë First Vice President Big One

Product Co., Ltd. ë Area Manager Phuket Area Office BankThai Public Co., LtdOther Positions -Training -

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LIST OF BRANCHES

BUSINESS CENTER IN METROPOLISSathon Business Center44 North Sathon Road, Silom, Bangrak, Bangkok 10500Tel. 0-2638-8970-9Fax. 0-2633-9034New Phetchaburi Business Center2884 New Phetburi Road, Bangkapi, Huey KwangBangkok 10310Tel. 0-2718-0613-8Fax. 0-2718-0612, 0-2718-0620Bangbon Business Center59/145 M.6, Bangbon, Bangbon, Bangkok 10150Tel. 0-2416-8277-9, 0-2894-4075-6

0-2894-4077Fax. 0-2894-4051, 0-2894-4079Bangna Business Center4099 Sukhumvit Road, Bangna, Bangna, Bangkok 10260Tel. 0-2393-0788-9, 0-2747-5322

0-2747-5389-90, 0-2747-4084-85Fax. 0-2393-0788, 0-2747-5391Bangna - Trad Business Center11/31 M.7 Bangna - Trad Road, T.Bangchalong, A.Bangphli,Samut Prakan 10540Tel. 0-2312-6630-2, 0-2312-6752-4Fax. 0-2312-6755Charansnitwongse Business Center529/9 Charansnitwongse Road, Bangkhunsri, BangkoknoiBangkok 10700Tel. 0-2411-0339, 0-2411-3603-4Fax 0-2411-2245Huey Kwang Business Center246 Suthisan Road, Dindaeng, Dindaeng, Bangkok 10400Tel. 0-2277-0554, 0-2277-2863, 0-2277-9955Fax. 0-2277-0903, 0-2691-7820Jawarad Business Center632-636 Yaowarat Road, SamphanthawongseSamphanthawongse, Bangkok 10100Tel. 0-2233-8696, 0-2234-2551-2

0-2234-4002, 0-2234-4527, 0-2234-49410-2234-6713, 0-2266-4308-90-2639-6635-7

Fax. 0-2234-4525Ladprao Business Center2109 Ladprao Road, Wangthonglang, WangthonglangBangkok 10310Tel. 0-2936-9115-6, 0-2538-2493-4

0-2530-1372Fax. 0-2936-9117, 0-2530-1371Ngamwongwan Business Center19/200-201 M.2, T.Bangkhen, A.Muang, Nonthaburi 11000Tel. 0-2580-1601, 0-2580-1920Fax. 0-2580-2451Nong Khaem Business Center12/3 M.7, Nongkhangphlu, Nongkhaem, Bangkok 10160Tel. 0-2421-1122, 0-2421-1460, 0-2421-1991

0-2421-3787Fax. 0-2808-9549

Rajadamnern Business Center108-110 Rajadamnern Klang Road, WatbowornnivesPranakorn, Bangkok 10200Tel. 0-2221-7679, 0-2224-8052-3, 0-2621-1288Fax. 0-2221-7395, 0-2224-8052-3Rangsit Business Center89, 91 Rangsit-Pathumthanee Road, T.PrachathipatA.Thanyaburi, Pathumthanee 12130Tel. 0-2531-3020, 0-2531-5893, 0-2567-2232

0-2959-1990, 0-2959-2212-3Fax. 0-2959-2214Yannawa Business Center2074/7 Charoen Krung Road, Bangkok 10120Tel. 0-2289-3872-3Fax. 0-2289-0560

BUSINESS CENTER IN PROVINCESChiang Mai Business Center64 Changphuek Road, T.Sriphoom, A.Muang, Chiang Mai 50200Tel. 0-5321-1633, 0-5321-4035, 0-5341-8222

0-5341-8338-40, 0-5341-8400-2Fax. 0-5321-1637Chon Buri Business Center726/1-2 Sukhumvit Road, T.Bang Pla Soi, A.MuangChon Buri 20000Tel. 0-3878-2161-5Fax. 0-3878-2166Hat Yai Business Center129/8 Niphat - Uthit 3 Road, A.Hat Yai, Songkhla 90110Tel. 0-7423-0973, 0-7423-3037, 0-7423-5777

0-7424-5011, 0-7422-5606-8 Fax. 0-7424-5022Khon Kaen Business Center142-148 Srichan Road, A.Muang, Khon Kaen 40000Tel. 0-4322-0812, 0-4322-0925, 0-4322-1457

0-4322-1731, 0-4322-4827, 0-4332-2677-8Fax. 0-4322-2654, 0-4322-4631Nakhon Ratchasima Business Center353 Mitraphab Road, A.Muang, Nakhon Ratchasima 30000Tel. 0-4424-3714, 0-4424-3785, 0-4424-4133

0-4424-4153, 0-4425-6407, 0-4425-81620-4426-2447

Fax. 0-4425-8161Nakhon Sawan Business Center169/4 Sawanvithi Road, T.Paknampo, A.MuangNakhon Sawan 60000Tel. 0-5622-1137, 0-5622-2939, 0-5622-6354

0-5622-7473-4, 0-5631-1611Fax. 0-5622-4182, 0-5622-7474 .Phetchaburi Business Center4 Phongsuriya Road, A.Muang, Phetchaburi 76000Tel. 0-3241-4980, 0-3242-4206, 0-3242-5148

0-3242-5302Fax. 0-3242-4205, 0-3242-8227

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Phuket Business Center31 Phuket Road, T.Talad - Yai, A.Muang, Phuket 83000Tel. 0-7621-1501, 0-7621-4651-2, 0-7621-7153Fax. 0-7621-1502Phar Nakhon Si Ayutthaya Business Center3/9 Uthong Road Hor Rattanachai, Phar Nakhon Si AyutthayaPhar Nakhon Si Ayutthaya 13000Tel. 0-3523-2993-6Fax. 0-3523-2932Samut Sakhon Business Center927/409-410 Setthakit 1 Road, T.Maha Chai, A.MuangSamut Sakhon 74000Tel. 0-3481-0955-6, 0-3442-8812-4Fax. 0-3481-0957, 0-3442-8815Surat Thani Business Center323/1 Narmung Road, A.Muang, Surat Thani 84000Tel. 0-7721-3640, 0-7721-3643, 0-7727-3574-5Fax. 0-7721-3643, 0-7727-3574-5Ubon Ratchathani Business Center316 Chayangkul Road, T.Nai-Muang, A.Muang,Ubon Ratchathani 34000Tel. 0-4528-4224-5, 0-4531-3395, 0-4528-3136Fax. 0-4531-3467, 0-4528-3137

METROPOLITAN BRANCHESBangkapi Branch390/4-5 Sukhumvit Road, Khlong Theay, Bangkok 10110Tel. 0-2258-1913, 0-2258-1916, 0-2259-0601

0-2663-4361Fax. 0-2258-1939Bangkhen Branch1883/13 Phaholyothin Road, Lardyao, JatujakBangkok 10900Tel. 0-2511-4353, 0-2512-1716, 0-2512-1791Fax. 0-2511-4320Bangplad Branch195 Caransanitwong Road, Bangplad, BangpladBangkok 10700Tel. 0-2424-3361-2, 0-2433-8188Fax. 0-2424-3361Bangpo Branch48/2-3 Pracharat 1 Road, Bangsue, BangsueBangkok 10800Tel. 0-2585-0192, 0-2585-8180, 0-2587-3454Fax. 0-2585-0260Bangrak Branch1401-1403 Charoenkung Road, Silom, BangrakBangkok 10500Tel. 0-2234-6209, 0-2234-6435, 0-2234-9884Fax. 0-2233-5020Bangyeekhan Branch367 Charansnitwong Road, Bangbumru, BangpladBangkok 10700Tel. 0-2433-5920-3Fax. 0-2433-5921Big C Bangphli Branch89 M.9, Teparak Road, T.Bangphliyai, A, BangphliSamut Prakan 10540Tel. 0-2312-9695-6Fax. 0-2312-9596

Bukkalo Branch624 Jaroennakorn Road, Bukkalo, Thonburi, Bangkok 10600Tel. 0-2468-7141-2, 0-2468-8202Fax 0-2468-8203Chaengwatthana Branch28/127-128 M.4 Chaengwatthana Road, T.BangtaladA.Pakkred, Nonthaburi 11120Tel. 0-2573-8121, 0-2574-1502-3Fax. 0-2573-8785Donmuang Branch310/110-112 M.3, Seekun, Donmuang, Bangkok 10210Tel. 0-2566-1588, 0-2566-1610, 0-2929-9947Fax. 0-2566-1593Huamark Branch2314/15-17, Ramkhamhaeng Road, Huamark, BangkapiBangkok 10240Tel. 0-2377-1362-3, 0-2377-2555Fax. 0-2377-1365Kluaynamthai Branch4232, 4234, 4236 Rama 4 Road, Phra KhanongKhlong Toei, Bangkok 10110Tel. 0-2391-9113, 0-2392-7824, 0-2392-9208Fax. 0-2391-9112Lumpini Branch1032/10-12 Rama 4 Road, Thongmahamek, SathonBangkok 10120Tel. 0-2286-0149, 0-2286-5388, 0-2286-5761Fax. 0-2286-0223Mahanak Branch1168 Krungkasem Road, Khlongmahanak, PomprabsattruphaiBangkok 10100Tel. 0-2223-2650, 0-2223-6624, 0-2224-7021Fax. 0-2224-7022Pakklongtalad Branch373-375 Banmor Road, Wangburaphaphirom, PhranakhornBangkok 10200Tel. 0-2224-7207-8, 0-2224-7210Fax. 0-2224-7209Phaholyothin Branch670/51-52 Phaholyothin Road, Samsennai,PhayathaiBangkok 10400Tel. 0-2278-1079, 0-2279-5088, 0-2279-8662Fax. 0-2279-0737Phasi Charoen Branch105 Phetkasem Road, Bangwa, PhasicharoenBangkok 10160Tel. 0-2467-3106, 0-2467-5453-4, 0-2868-8338Fax. 0-2467-5453-4Poochaosamingprai Branch279 M.2, T.Samrongklang, A.PhrapradaengSamut Prakan 10130Tel. 0-2384-3670, 0-2384-7604-6Fax. 0-2384-7605Prannok Branch307/5-7 Issarapharp Road, Banchanglor, Bangkok 10700Tel. 0-2418-1572-4Fax. 0-2412-3098

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Pratunam Branch425/1-2 Rajaprarop Road, Makkasan, RajatheveeBangkok 10400Tel. 0-2251-5510, 0-2251-5569

0-2253-5542-3Fax. 0-2251-5415Rajawongse Branch2 Rajawongse Road, Samphanthawongse, SamphanthawongseBangkok 10100Tel. 0-2221-1333, 0-2224-8162-3Fax. 0-2222-3190Ramintra Branch110/19-20 M.14, Khannayao, Khannayao, Bangkok 10230Tel. 0-2509-5713, 0-2510-4448, 0-2519-2203Fax. 0-2509-5712Rat Burana Branch349/2-5 M.4 Suksawat Road, Bangpakok, RatburanaBangkok 10140Tel. 0-2427-2249, 0-2427-4403, 0-2427-4405Fax. 0-2427-4404Sampeng Branch414 Trok Issaranuparb, Jawarad Road, JakawatSampantawong, Bangkok 10100Tel. 0-2224-2313, 0-2226-0367Fax. 0-2224-2333Samuthprakarn Branch117 Prakhonchai Road, T.Parknum, A.MuangSamut Prakan 10270Tel. 0-2387-1806, 0-2387-1849Fax. 0-2389-1349Sathupradid Branch501/98-100 Sathupradid Road, Chongnonsee, YannawaBangkok 10120Tel. 0-2210-2724-6Fax. 0-2210-2723Seri Center Srinakarin Branch61 Srinakarin Road, Nongbon, Prawet, Bangkok 10250Tel. 0-2746-0330-1Fax. 0-2746-0332St. Louis Branch92, 94 Soi Can 18/7 (St. Louis 3) Thungwatdon, SathonBangkok 10120Tel. 0-2286-0335, 0-2286-0374, 0-2286-2438Fax. 0-2286-0318Suksawad Branch139 M.19 Suksawad Road, A.PhrapradaengSamut Prakan 10130Tel. 0-2463-2130, 0-2463-5345-6Fax. 0-2463-5344Thanon Chan Branch26/33-34 Chan Tad Mai Road, Thungmahamek, SathonBangkok 10120Tel. 0-2678-5670-1Fax. 0-2678-5672Thatien Branch394/6-8 Maharaj Road, PhrabarommaharatchawangPhranakorn Bangkok 10200Tel. 0-2222-4323, 0-2224-8165Fax. 0-2224-8164

Thewet Branch435-437 Samsen Road, Vajira, Dusit, Bangkok 10300Tel. 0-2280-0481-2, 0-2281-5453, 0-2282-3568Fax. 0-2282-4085Thonburi Branch56,58 Somdet Phra - Chao Tak Sin Road, Bangkok 10600Tel. 0-2465-0442, 0-2465-8758Fax. 0-2472-1058Thonglor Branch1031/1 Sukhumvit 53/1, Khlongtonnorth, WantanaBangkok 10110Tel. 0-2391-4788-91Fax. 0-2391-4790Tivanon Branch1/124 M.5, T.Taladkhwan, A.Muang, Nonthaburi 11000Tel. 0-2525-0586, 0-2525-2561, 0-2527-0264Fax. 0-2527-0264Wat Sai Branch112/41 M.2, Ekkachai Road, Bangkhuntien, ChomthongBangkok 10150Tel. 0-2415-0909, 0-2415-1235, 0-2415-1378

0-2415-2712, 0-2893-8852Fax. 0-2415-2712Yomaraj Branch806/33-36 Rama VI Road, Thungphyathi, RatchathewiBangkok 10400Tel. 0-2215-7126-7, 0-2215-7382-3Fax. 0-2215-7383Bang Yai Sub Branch61/76 M.6 T. Sao Thong Hin, A.Bang Yai Nonthaburi 11140Tel. 0-2903-3120, 0-2903-3125Fax. 0-2903-3127Central City Bangna Sub Branch1091 M.12 Bang Na - Trat Road, Bang Na, Bang NaBangkok 10260Tel. 0-2745-7314-5Fax. 0-2745-7316Central Plaza Rama III Sub Branch79/82 Sathu pradit Road, Chong Nonsi Nawa, Bangkok 10120Tel. 0-2673-7035-6Fax. 0-2673-7037Central Plaza Rama II Sub Branch128 M.6 Rama II Road, Samae Dam, Bang Khun ThianBangkok 10150Tel. 0-2872-4307-8Fax. 0-2872-4309Chakkrawat Sub Branch186 Thanon Chakkrawat Khwaeng Chakkrawat KhetSamphanthawong Bangkok 10100Tel. 0-2622-5660-1Fax. 0-2622-5662Empire Tower Sub Branch195 South Sathorn Road, Yannawa, Sathorn, Bangkok 10120Tel. 0-2670-1621-2Fax. 0-2670-1623

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Fashion Island Sub Branch5/5-6 M.7 Ramintra Road, Khannayao, Bangkok 10230Tel. 0-2947-5188, 0-2947-5189Fax. 0-2947-5190Fortune Tower Sub Branch5 Fortune Tower Bldg, Ratchadaphisek Road, DindaengDindaeng, Bangkok 10400Tel. 0-2642-0891-2Fax. 0-2642-0891-3Gmm Grammy Place Sub Branch50 Sukhumwit 21 Road (Asoke), Khlongtoeynua, WattanaBangkok 10110Tel. 0-2665-9906-7Fax. 0-2665-9908Imperial World Samroag Sub Branch999 M.1 Sukhumvit Road, Samrongneur, MuangSamutprakan 10270Tel. 0-2380-6883-4Fax. 0-380-6894K.S.L. Tower Thanon Si Ayutthaya Sub Branch503 Thanon Si Autthaya Khwaeng Thanon Phayathai KhetRatchatrewi Bangkok 10400Tel. 0-2642-6762-3Fax. 0-2642-6764Lat Krabang Sub Branch555/15-16 M.1 Onnut-Lat Krabang Road, Lat KrabangLat Krabang, Bangkok 10520Tel. 0-2739-1895-6Fax. 0-2739-1897Muang Thong Thani Sub Branch59/7 Muang Thong Thani Soi 2, Chaeng Wattana RoadKhlong Kluea, Pak Kret, Nonthaburi 11120Tel. 0-2981-4135, 0-2981-4172Fax. 0-2981-4446Ramkhamhaeng Sub Branch1991/4 Ramkhamhaeng Road, Huamark, BangkapiBangkok 10240Tel. 0-2319-8567, 0-2319-8617Fax. 0-2319-8575Siam Square Sub Branch290-292 Siam Square Soi 4, Rama 1 Road, PathumwanPathumwan, Bangkok 10330Tel. 0-2250-1735-6Fax. 0-2250-1737Silom Center Sub Branch2 Thanon Silom, Suriyawong, Bangrak, Bangkok 10500Tel. 0-2632-7621-2Fax. 0-2632-7623Silom Sub Branch269 Silom Road, Silom, Bangrak, Bangkok 10500Tel. 0-2234-3010, 0-2236-4747-8Fax. 0-2236-4749Suntowers Thanon Vibhavadirangsit Sub Branch123 Soi Choei Phuang Thanon Vibhavadirangsit KhwaengChomphon Khet Chatuchak Bangkok 10900Tel. 0-2617-7617, 0-2617-7618Fax. 0-2617-7619

Talad Wongsakon Sub Branch48/44 M.1 Saimai Road, Saimai, Saimai, Bangkok 10220Tel. 0-2994-3087, 0-2994-3394Fax. 0-2994-3943Talat Thai Sub Branch31/27-29 M.9 Phahon Yothin KM.42 Khlong NuengKhlong Luang Patum Thani 12120Tel. 0-2529-2277, 02-529-2971Fax. 0-2529-4852Thanon Langsuan Sub Branch44 Langsuan Road, Lumpini, Patumwan, Bangkok 10330Tel. 0-2626-7101-3Fax. 0-2626-7104The Mall Bangkhae Sub Branch275 M.1, Phetkasem Road, Bang Khae Nuea, Bang KhaeBangkok 10160Tel. 0-2455-3515, 0-2413-0739, 0-2803-8608Fax. 0-2455-3515The Mall Tha Phra Sub Branch99 Ratchadaphisek Road, Bukkholo, Thon Buri, Bangkok 10600Tel. 0-2477-7287-8Fax. 0-2477-7289Vorachak Sub Branch190 Luang Road, Pomprabsattuphai, PomprabsattuphaiBangkok 10100Tel. 0-2223-5058, 0-2223-4988Fax. 0-2224-9011Zeer Rangsit Sub Branch99 M.8 Zeer Street Shopping Complex, Phahonyothin RoadKhukhot, Lamlukka, Pathum Thani 12130Tel. 0-2992-5739-40Fax. 0-2992-5741

PROVINCIAL BRANCHESNORTHERNChiang Rai Branch879/14 Phaholyothin Road, A.Muang, Chiang Rai 57000Tel. 0-5371-4029-30, 0-5371-9377-8Fax. 0-5371-5905Manorom Branch331/6 Mu 4, T.Khung Samphao, A.Manorom, Chai Nat 17110Tel. 0-5649-1006, 0-5649-1223Fax. 0-5649-1224Phitsanulok Branch209/39 Boromtrailokanart Road, T.Naimuang, A.MuangPhitsanuloke 65000Tel. 0-5524-4060, 0-5525-2179, 0-5525-2199Fax. 0-5524-4061Central Airport Chiang Mai Sub Branch2 Mahidol Road, T.Haiya, A.Muang, Chiang Mai 50100Tel. 0-5328-4447-8Fax. 0-5328-4449Pantip Plaza Chiangmai Sub Branch152/1 Changkhlan Road, Changkhlan, A.MuangChiangmai 50100Tel. 0-5328-8007-8Fax. 0-5328-8009

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CENTRALNakhon Pathom Branch153 Rajvithee Road, T.Prapathomjadee, A.MuangNakhon Pathom 73000Tel. 0-3425-4233-4, 0-3428-0198

0-3428-0199Fax. 0-3425-1028Sumut Songkharm Branch131/2 Tangkhaomuang Road, T.Maeklong, A.MuangSamut Songkharm 75000Tel. 0-3471-1442, 0-3471-2429, 0-3472-3568Fax. 0-3471-2429Omnoi Sub Branch444 M.4 Phetkasem Road, Omnoi, KrathumbaenSamutsakhon 74130Tel. 0-2810-5211-2Fax. 0-2810-5213

EASTERNChachoengsao Branch16 Srisothon Tatmai Road, T.Na Muang, A.MuangChachoengsao 24000Tel. 0-3881-3041-3Fax. 0-3881-3044Rayong Branch144/53-55 Sukhumvit Road, T.Tapradu, A.MuangRayong 21000Tel. 0-3861-1220, 0-3861-1588-9Fax. 0-3861-4870Amata Nakron Industrial Estate Sub Branch700/2 M.1 Klong Tamru, Muang, Chonburi 20000Tel. 0-3845-7037-9Fax. 0-3845-7037-9Pacific Park Sriracha Sub Branch90 Sukhumvit Road, T.Sri Racha, A.Sri Racha, Chonburi 20110Tel. 0-3877-1480-1Fax. 0-3877-1482The Market Pattaya Sub Branch225/2 M.9, Pattaya Sai 2 Road, Nongprue, BanglamungChonburi 20150Tel. 0-3848-8140-1Fax. 0-3848-8142

NORTH EASTERNNong Khai Branch1245-1245/1 M.5, Prajak Road, T.Naimuang, A.MuangNong Khai 43000Tel. 0-4241-1728, 0-4241-1738, 0-4241-2791Fax. 0-4241-2624

Sakon Nakhon Branch1395 M.13, Suk Kasem Raod, A.MuangSakhon Nakhon 47000Tel. 0-4271-1190, 0-4273-0557, 0-4273-0919Fax. 0-4271-1701Saraburi Branch82/1 Sut Banthat Road, Pak Phriao, Muang SaraburiSaraburi 18000Tel. 0-3631-5303-4, 0-3631-5307Fax. 0-3631-5309

Udon Thani Branch499/1 Phosri Road, T.Makkaeng, A.MuangUdon Thani 41000Tel. 0-4222-3248-9, 0-4234-4097Fax. 0-4224-7184

SOUTHERNChumphon Branch36/3 Paramintaramonca Road, T.Thatapao, A.MuangChumphon 86000Tel. 0-7750-4825, 0-7751-1698, 0-7757-0259Fax. 0-7751-1661Hua Hin Branch62 Thanon Phetkasem, Hua Hin, Hua HinPrachuap Khiri Khan 77110Tel. 0-3253-1460-2Fax. 0-3253-1463Songkhla Branch354 Saiburi Road, A.Muang, Songkhla 90000Tel. 0-7431-1906, 0-7432-4050-1, 0-7443-5002Fax. 0-7431-4391Central Festival Phuket Sub Branch74-75 Wichit, Muang Phuket, Phuket 83000Tel. 0-7636-7008-9Fax. 0-7636-7010Dan Nok Sadao Sub Branch124,126 M.7 Kanchanawanit Road, Samnak Kham, SadaoSongkhla 90320Tel. 0-7443-4192-3Fax. 0-7443-4194Namom Sub Branch15/16 M.8, T.Namom, A.Namom, Songkhla 90310Tel. 0-7438-3006Fax. 0-7438-3005Thanon Tilok Uthit 1 Sub Branch77 Thanon Tilok Uthit 1 Talad Yai, Muang PhuketPhuket 83000Tel. 0-7625-6606-7Fax. 0-7625-6608

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BRANCHES PROVIDING CURRENCY EXCHANGE SERVICE

CURRENCY EXCHANGE OFFICE INSIDETHE BANK’S PREMISED

METROPOLITAN BRANCHESBangbon Business CenterBangna Business CenterBangna - Trad Business CenterCharansnitwongse Business CenterHuey Kwang Business CenterJawarad Business CenterLadprao Business CenterNew Phetchburi Business CenterNgamwongwan Business CenterNong Khaem Business CenterRajadamnern Business CenterRangsit Business CenterSathon Business CenterYannawa Business CenterBangkapiBangkhenBangpladBangpoBangrakBamgyeekhan

Big C BangphliBukkaloChaengwatthanaDonmuangHuamarkKluaynamthaiLumpiniMahanakPakklongtaladPhaholyothinPhasi CharoenPoochaosamingpraiPrannokPratunamRajawongseRamintraRat BuranaSampengSamuthprakarnSathupradid

Seri Center SrinakarinSt.LouisSuksawadThanon ChanThatienThewetThon BuriThonglorTivanonWat SaiYomarajBang Yai SubCenteral City Bangna SubCentral Plaza Rama II SubCentral Plaza Rama III SubChakkrawat SubEmpire Tower SubFashion Island SubFortune Town SubGmm Grammy Place Sub

Chang Rai Branch879/14Phaholyothin Road,A.Muang, Chiang Rai

Bangkapi Branch390/4-5 Sukhumvit Road,Bangkok

Yannawa Business Center2074/7 New Road,Bangkok

Lumpini Branch1032/10-12Rama 4 Road,Bangkok

The Market Pattaya Sub225/2 Pattaya Sai 2 Road,A.Bang Lamung, Chonburi

Silom Sub Branch269 Silom Road, Bangkok

Imperial World Samrong SubK.S.L.TowerThanon Si Ayutthaya SubLat Krabang SubMuang Thong Thani SubRamkhamhaeng SubSiam Square SubSilom Center SubSilom SubSuntowers ThanonVibhavadirangsit SubTalad Wongsakon SubTalat Thai SubThanon Langsuan SubThe Mall Bangkhae SubThe Mall Tha Phra SubVorachak SubZeer Rangsit Sub

PROVINCIAL BRANCHESChiang Mai Business CenterChonburi Business CenterHat Yai Business CenterKhon Kaen Business CenterNakhon Ratchasima Business CenterNakhon Sawan Business CenterPhetchaburi Business CenterPhuket Business CenterPranakhon Si ayutthayaBusiness Center

Samut Sakhon BusinessCenterSurat Thani Business CenterUbon RatchathaniBusiness CenterChiang RaiChumphonHua HinManoromNakhon Pathom

Nong KhaiPhitsanulokRayongSakon NakhonSamut SongkharmSaraburiSongkhlaUdon ThaniAmata NakronIndustrial Estate Sub

Central Airport Chang Mai SubCentral Festival Phuket SubChachoengsao SubDan Nok Sadao SubNamom SubOm Noi SubPacific Park Sriracha SubPantip Plaza Chang Mai SubThanon Tilok Uthit 1 SubThe Market Pattaya Sub

Hua Hin Branch62 Phetkasem, A.Hua Hin,Prachuap Khiri Khan