Management Discussion and Analysis and Financial Statements For the year ended 31 December 2016 (Unaudited Financial Statements)

Thanachart Bank Public Company Limited Tel: 0 2217 8000, 0 2217 8444 Fax: 0 2217 8451 Website: www.thanachartbank.co.th

Thana achart Bank Pub blic Comp pany Lim mited and d Its Sub bsidiaries s Manag gement Dis scussion and Analy ysis (Unau udited Fin nancial Staatements) Econo omics Outllook and Competitio C on in Banking Industry Thai eco onomy in 20 016 is expec cted to have a better gro owth than las st year. Govvernment spe ending continue es to be the key driver, as well as, tourism despite a negattive impact ffrom eradica ation of illicit tour companiess. Private con nsumption is expected to o grow from la ast year, esppecially in the e latter om higher agricultural in ncome and tax incentive measuress. Export sector is half of tthe year fro estimate ed to have a slight grow wth from high her volume in the latter half of the year while private investme ent should also a improve from last ye ear. As the economic e con ndition in 20 16 has a ten ndency to impro ove slowly with w low headline inflat ion, the Mo onetary Polic cy Committeee of the Ba ank of Thailand d issued a re esolution to maintain the e policy interrest rate at 1.50 1 percentt in order to further enhance e economic growth. g Thai eco onomy in 201 17 should co ontinue to gro ow, and thus, loans are estimated e to ggrow with mo ore competittion in depossit acquisition n to maintain n liquidity

Key Ev vents in 2016 

1.

On 5 April 2016 6, the Annua al General M Meeting of Sh hareholders of 2016 issuued a resolu ution to prove dividen nd payments s for shareho olders of Thanachart Bank Public Coompany Lim mited at app 0.40 baht per share, equivalent to 2, 426 million baht. Togetther with thee interim dividend s equiva alent to 1,334 4 million bah ht, the divideend paymentt of the payyment of 0.22 baht per share yea ar 2015 totaled to 0.62 baht b per sharre equivalent to 3,760 million m baht, oor 32.83 perc cent of 201 15 net profit in the bank only financiial statemen nts and 35.00 0 percent off 2015 net profit p in con nsolidated fin nancial state ements. Thiss is in accord dance with the dividend payout polic cy and diviidends were paid on 25 April A 2016.

2.

The e Board of Directors D of Thanachart Bank Public Company Limited No . 8/2016 dated 18 Aug gust 2016 isssued a resollution for an interim divid dend paymen nt from the ooperating res sults in the first six-mon nth period off 2016 at 0.35 5 baht per share, an equ uivalent of 2, 123 million baht b or o first half of o 2016 net profit in the bank only financial stattements and 35.37 34.07 percent of ancial statem ments. This is in accordance with thhe dividend payout perrcent of conssolidated fina poliicy and dividends were paid p on 15 Se eptember 20 016.

3.

od waters th Floo he submerge ed a key sou uthern Thai city c escalated d after the fi scal period ending e 31 December 2016 2 and has s negatively impacted the e regional an nd national eeconomies. TBANK T emedy progrrams for cu ustomers an nd provided d aids for tthe flood victims. v hass issued re Furrthermore, TBANK has assessed a an nd managed the likely im mpact on thee operating results. r The e estimate sh howed no sig gnificant imp act on the Bank’s perform mance and rresults.

1

Statem ments of Comprehen C nsive Inco ome (Cons solidated Financial Statemen nts) Unaudited Finaancial Statements

31-Decc-16

For the 3 months ended e 30-Sep-16 31-Dec-15

For the year endded 31-Dec-16 31--Dec-15

Operating Performance (Million Bahht) 10,910 3,698 7,212 3,139 10,351 5,398 4,953 1,161 205 3,587 233 3,354 (812) 2,542

11,1006 3,7663 7,3443 2,9223 10,2666 5,1882 5,0884 1,4774 2006 3,4004 1662 3,2442 (2220) 3,0222

11,765 4,728 7,037 2,742 9,779 5,059 4,720 1,451 240 3,029 171 2,858 (457) 2,401

44,886 16,174 28,712 11,694 40,406 20,626 19,780 5,141 1,110 13,529 691 12,838 452 13,290

48,217 20,536 27,681 11,957 39,638 19,721 19,917 6,376 2,216 11,325 198 11,127 (1,171) 9,956

The Bank Non-Controllingg Interests

3,230 124

3,2002 4 40

2,767 91

12,434 404

10,743 383

Net Profit

3,354

3,2442

2,858

12,838

11,126

1.36 10.42 3.11 3.97 0.76 0.64 30.33 52.15 31-Decc-16

1.334 10.446 3.17 3.999 0.991 0.880 28.447 50.448 30-Sep-16

1.12 9.50 2.87 3.67 0.88 0.76 28.04 51.73 31-Dec-15

1.29 10.27 3.03 3.87 0.87 0.72 28.94 51.05

1.11 9.83 2.84 3.49 1.13 0.84 30.17 49.75

6690,907 9 950,511 7 725,965 8 824,391 124,488

679,1449 976,0008 744,8446 852,3556 122,1444

713,466 980,972 741,145 863,281 116,226

95.17 16,434 2.29 24,841 151.16 192.57

91.18 17,9006 2.444 24,4007 136.331 172.339

96.27 21,681 2.84 25,893 119.42 159.33

12,892

12,8777

15,986

1.90

1.886

2.20

Reserve (Million Baht)

19,550

19,0447

20,367

Coverage Ratioo(7) (%)

151.64

147.991

127.41

Reserve to Reqquired Reserve(8) (%) Capital Adequaacy Ratio (%)

202.23 19.15

195.557 19.770

171.94 17.92

Interest Incomee Interest Expenses Net Interest Inccome Non-interest Inncome Net Operating Income(1) Other Operatinng Expenses Pre-Provision Operating O Profit (PPOP)) Impairment Losss of Loans and Debt Seecurities - From Normal Business Operation Impairment Losss of Loans -Special Proovision Profit before Taax Income Tax Profit for the Period P Other Comprehhensive Income Total Compreheensive Income Total Profit Attrributable to:

Operating Performance Ratios ROAA (%) ROAE(2) (%) Interest Spreadd(3) (%) Loan Spread(4) (%) Credit Cost (% %) Credit Cost Froom Normal Business Opperation (%) Non-interest Inncome Ratio(5) (%) Cost to Incomee Ratio(6) (%) Financial Position P (Million Baht) Loans Total Assets Deposits and Debt D Issued and Borrowwings Total Liabilities Equity attributaable to owner of the com mpany Financial Position P Quality (TBANKK Consolidated) Loans to Deposits and Debt Issued annd Borrowings (%) Non-performingg Loans (Million Baht) NPL Ratio (%) Reserve (Million Baht) Coverage Ratioo(7) (%) Reserve to Reqquired Reserve(8) (%) Financial Position P Quality (TBANKK Only) Non-performingg Loans (Million Baht) NPL Ratio (%)

(1) Net Operatingg Income = Net Interest Inccome + Non-interest Income

(4) Loan Sprread = Loan Yield - Cost of Fund

(2) ROAE is calcculated from equity attributable to the Bank's shareholdders which increased

(5) Non-interrest Income Ratio = Non-innterest Income / Net

from capital raisinng of the Bank to replace Hybrid H Tier 1 in the fourth quuarter of 2015.

Operating Inncome

(3) Interest Spreaad = Yield - Cost of Fund

(6) Cost to Income Ratio = Other Operrating Expenses / Net Operrating Income

Yield = Interest Income / Average Earninng Assets

(7) Coveragee Ratio = Total Allowance / Non-performing Loans

Cost of Fund = Interest Expenses / Averrage Paying Liabilities

(8) Reserve to Required Reserve = Totaal Allowance / Reserve Reqquired by the BOT

2

Operatting Results for the e Year 201 6 In 2016 TBANK an nd its subsiidiaries’ nett profit tota aled 12,434 million bah ht, an increa ase of million baht or 15.74 percent p from m last yearr. A succes ss in mainttaining ope erating 1,691 m results marks the 8th consecu utive quarte erly growth h. This was due to succcesses in strategic n amid apprrehensive ec conomic envvironment to focus on asset a quality and to effe ectively direction manage e cost of fund f while increase ba anking fee income. Fu urthermore the Bank further strength hened its cap pital adequa acy positionin ng while putt in place a solid liquiditty coverage (LCR) accordance to Basel III regulation r im mplementatio on. An all-rou und improvem ment in profiitability ratio in a and financial position ns had undoubtedly valid dated the pottential and ca apability of thhe organization. In this digital era, the e Bank has launched l am mobile banking applicatio on under thee name Than nachart Connectt. The Bank also offered PromptPay registration together t with h Freever Saaving accoun nt or eSaving a account reaff ffirming the progress p of d digital banking and Main Bank strateggy. This also was a response to the cash hless society y national ag genda under a National e-Payment e p rogram rollout with Pay launched d as first pha ase. PromptP In 2016, asset size declined d follo owing loan vo olume. Howe ever, loan ou utstanding haas increased d in the w asset q quality contin nued to stren ngthen, as a result of efffective 4th quarrter from all loan types while NPL and d prudent rissk management. Furtherm more, CASA A ratio improv ved from lastt year from deposit d structure e manageme ent. Total income increa ased 1.94 percent p from m last year while w operatting expensees increased d 4.59 ding additiona al provision decreased 119.37 percen nt from percent. Impair loss of loan expense exclud e manageme ent and stronger asset q quality as NPLs N have been b declininng for the past 10 effective quarterss. NPLs on consolida ated basis declined d 5,24 47 million baht b from th he previous year, resultting in ercent and coverage ra atio at 151.16 percent. Reserve R to reequired rese erve as NPL rattio at 2.29 pe of 31 De ecember 2016 was at 192 2.57 percentt. On Ban nk Only bas sis, NPL ratio was at 1 .90 percentt with coverrage ratio aat 151.64 pe ercent. Reserve e to required reserve was s at 202.23 p percent. Cap pital adequac cy ratio of t he Bank ended at 19.15 pe ercent, an in ncrease from m 17.92 perce ent at the end of last year.

3

The Ban nk and its sub bsidiaries’ op perating resu ults in the ye ear 2016 com mparing witth that of 2015 can be summ marized as fo ollows: ■

Net interest income increased 3 .72 percent from f cost of fund managgement and interest t widened d to 3.03 perccent. spread that

■

Non-inte erest income decrease ed 2.20 perrcent mainly y from deccline in gaiins on investme ents while fe ee and servicce income inc creased.

■

Total inccome increased 1.94 pe rcent from im mprovement in net intereest income and a fee and servvice income.

■

Operatin ng expenses s increased 4.59 percent from personnel expeense and increase investme ent in IT systtem and infra astructure.

■

Impairm ment loss of loan expensse not includ ding addition nal provisionn decreased d 19.37 percent from effectiv ve asset qua lity managem ment.

■

Net proffit increased 15.74 perce ent from an increase i in total t income and a decre ease in impairment loss of lo oans and deb bt securities..

■

NPLs de ecreased by y 5,247 millio on baht with NPL ratio decreased d too 2.29 perce ent and coverage ratio increa ased to 151. 16 percent.

Net Inte erest Income e Unit: Million Baht

Net Interesst Income

4Q16

3Q16

Interest Incoome Interbank and Money Markett Items

10,910 304

Change

2016

20155

44,886 1,307

(60.00)

11,106 285

+/(--) (196) 19

% (1.76) 6.67

2

5

(3)

830

903

(73)

Loans

4,442

4,563

Hire Purcchase and Financial Leases

5,332

5,350

3,698 2,118

Interbank and Money Markett Items

Changge

48,2217 1,5580

+/(-) (3,331) (273)

% (6.91) (17.28)

30

73

(43)

(58.90)

(8.08)

3,504

3,7761

(257)

(6.83)

(121)

(2.65)

18,337

19,4474

(1,137)

(5.84)

(18)

(0.34)

21,708

23,3329

(1,621)

(6.95)

3,763 2,149

(65) (31)

(1.73) (1.44)

16,174 9,526

20,5536 12,8832

(4,362) (3,306)

(21.24) (25.76)

173

182

(9)

(4.95)

741

9 957

(216)

(22.57)

Fund Contributed to FIDF andd DPA

815

812

3

0.37

3,327

3,4405

(78)

(2.29)

Debts Issued

591

619

(28)

(4.52)

2,575

3,3336

(761)

(22.81)

Investmennts for trading Investmennts for debts securitties

Interest Exppenses Deposits

Borrowingg Fee Net Interest Income

1

1

7,212

7,343

-

-

(131)

(1.78)

5

6

(1)

(16.67)

28,712

27,6681

1,031

3.72

For the year 2016, the Bank k and its subsidiaries’ net n interest income totaaled 28,712 million m se of 1,031 million m baht or 3.72 perc cent from last year. bahtt, an increas

4

■

Interest income decrreased by 3,3 331 million baht b or 6.91 percent due to a shrinkin ng loan e in yield on earning ass sets following g loan rate aadjustment and a the portfolio and decline r trend. market rate

■

Interest expenses de ecreased by 4 4,362 million n baht or 21.2 24 percent, a result strate egically d restruucturing. management on the cost of fund tto enhance liquidity and deposit

Cons sequently, in nterest spre ead in 2016 was at 3.03 3 percent, an increase ffrom 2.84 percent last y year. The de etails are show wn in the tab ble below.

Unit: Percent

4Q15

1Q16

2Q16

3Q16

4Q16

2015

2 2016

Average Policy P Interest Rate R

1.50

1.500

1.50

1.50

1.50

1.63

1.50

Yield

5.16

5.100

5.06

5.09

5.00

5.36

5.06

Cost of Fuund

2.29

2.233

2.08

1.92

1.89

2.52

2.03

Interest Spread S

2.87

2.877

2.98

3.17

3.11

2.84

3.03

Interest Incoome and Interest Expenses (Million Bahht) Interest Income

Interestt Expenses

4 48,217

11,765 11,5566 11,304 11,1006 10,910 4,728

4Q15

4,550 4,163 1Q16

2Q16

Net Interest Income (Milllion Baht)

20,536

27,681 28,712

44,886

16,174

7,0037

7,016

4Q Q15

1Q16

7,141

7,343

7,212

3 3,763 3,698 3Q Q16

4Q16

2015

20166

2Q16

3Q16

2015

4Q16

20016

Non--interest Inc come Unit: Million Baht

Non-interesst Income Net Fees annd Service Income

4Q16

3Q16

Change +//(-)

%

256

16.67

1,7922

1,536

Gains on Traading and Foreign Exxchange Transactionns

1377

129

8

6.20

Gains on Invvestments

1077

120

(13)

(10.83)

422

58

(16)

(27.59)

1

(1)

2

(200.00)

7055

671

34

5.07

2016

2015

Changge +/(-)

%

5,475

429

491

658

(167)

(25.38)

714

1,533

(819)

(53.42)

206

169

37

21.89

31

22

9

40.91

2,689

2,552

137

5.37

5,904

7.84

Share of Proofit from Investments in Associated Companies Accounted for unnder Equity Method A Gains (Losses) on Property Foreeclosed and Other Assets Net Insurancce Income Dividend Income

299

81

(52)

(64.20)

400

295

105

35.59

3266

329

(3)

(0.91)

1,259

1,253

6

0.48

Operating Inncome

1,3477

1,387

(40)

(2.88)

5,790

6,482

(692)

(10.68)

Non-interest Income

3,1399

2,923

216

7.39

11,694

11,957

(263)

(2.20)

me Other Incom

5

Non--interest inc come in 2016 6 totaled 11 1,694 million n baht, a decrease of 2663 million baht b or 2.20 percent from m last year. This was ma ainly due to gains on investments annd gains on trading t ange transac ctions. and fforeign excha ■

Net fee and service income tota aled 5,904 million m baht, an a increase oof 429 millio on baht p main nly due to bro okerage fee and insuranc ce payment ffee. or 7.84 percent

■

Operatin ng income to otaled 5,790 0 million baht, a decrease of 692 mi llion baht orr 10.68 percent from last year. This wass mainly due e to gains on investmentss which decrreased d gain on trading t and foreign exc change by 819 million baht or 53.42 percent and d b by 167 million baht or 25 5.38 percent,, partially offfset by transacttions which decreased dividend d income whiich increased d 105 million n baht.

Conssequently, no on-interest income ratio o in 2016 wa as 28.94 percent, a deccrease from 30.17 perce ent in the pre evious year. Fee Income Portion (Pe ercent) Acceptan nce, aval and guarrantees Brokerage e fee ATM and electronic bankin ng services Hire purc hase Insurance e brokerage fee Fee from fund managemen nt Credit card Others

For the year ended 31 December D 2015

For the year ended 31 December 2016

2.80%

11.76%

3.122%

144.35%

18.88%

17.49%

10.60%

11.47% 10. 73%

11.17%

9.84%

9.28% 16.12%

1 18.83%

18.41%

155.15%

Non-intterest Income (Millioon Baht)

Non-interest Incom me Ratio (%)

11,957 11,694

28.04 2,742

4Q15

2,971

1Q16

2,661

2Q16

2,923

3Q16

29.75

3,139

4Q16

2015

20116

4Q15

1Q16

27.15

28.47

2Q16

3Q16

30.33

30.17

4Q16

2015

28.94

2016

6

Othe er Operating g Expenses Unit: Million Baht

Other Operrating Expenses

4Q16

Change

3Q16

+//(-)

%

2016

2015

Changge +/(-)

%

3,0744

2,930

144

4.91

11,647

10,,952

695

6.35

Premises and Equipment Expensses

7822

765

17

2.22

3,051

2,,970

81

2.73

D (Special Business Tax, Stamp andd etc.) Taxes and Duties

181

193

(12)

(6.22)

757

837

(80)

(9.56)

6

6

-

46

44

2

4.55

Other Expennses

1,3555

1,288

67

5.20

5,125

4,,918

207

4.21

Total Other Operating Expensess

5,3988

5,182

216

4.17

20,626

19,,721

905

4.59

Employee's Expenses E

Directors' Reemuneration

-

In 20 016, operatin ng expenses s totaled 20,626 million baht, an increase of 9005 million baht b or 4.59 percent from m last year, mainly m due to tthe followings s ■

Personn nel expenses s increased b by 695 million n baht or 6.3 35 percent ass a result of annual salary in ncrease and incentive exp pense followin ng the growin ng sale volum me.

■

Premise e and equipm ment expense e increased by b 81 million baht or 2.73 percent as a result of depre eciation expense from bra anch renovatio on and decorration.

■

Other expenses e inc creased by 2 207 million baht or 4.21 1 percent froom IT system and infrastru ucture investm ment and advvertising expe enses

Conssequently, cosst to income ratio in 2016 was 51.05 pe ercent, an inc crease from 449.75 percentt in the previo ous year. Ho owever, operrating expensses compare ed to net proffit decreasedd from the prrevious year as there wass more expen nses related to o asset quality manageme ent. airment Loss s of Loans and a Debt Se ecurities Impa Unit: Million Baht

Impairmentt Loss of Loans annd Debt Securitiess Impairment Loss of Loans from noormal business operration Impairment Loss of Loans -Special Provision

4Q16 1,161

3Q16 1,474

Change + +/(-)

%

(313)

2016

20115

Changge +/(-)

% (19.37)

(21.23)

5,141

6,376

(1,235)

205

206

(1)

(0.49)

1,110

2,216

(1,106)

(49.91)

1,366

1,680

(314)

(18.69)

6,251

8,592

(2,341)

(27.25)

Credit Cost (%) (

0.76

0.91

(0.15)

10.47

0.87

1.13

(0.26)

10.47

Credit Cost from f normal businesss operation (%)

0.64

0.80

(0.16)

(18.60)

0.72

0.84

(0.12)

(18.60)

ment Loss of Loans and Debt Securitiess Total Impairm

In 20 016, the Bank k and its sub bsidiaries ha ad 5,141 million baht in impairment loss on loan ns and debt securities excluding e sp pecial provis sion, a decre ease of 1,235 5 million bah ht or 19.37 percent p as at 0.72 pe ercent, a dec crease from 0.84 percennt last year frrom an from last year. Credit cost wa nagement. In addition, the e Bank has utilized u its tax benefit to pput in 1,110 million effecttive risk man baht of special provision p to be vigilant a against volatile economic c conditions and to enha ance a as a substan ntial reduction in NPL raatio, and thu us, the financcial position.. Furthermorre, there wa coverrage ratio imp proved significantly. The d details are inc cluded in the non-perform ing loans sec ction.

7

Other Operaating Expenses (Milllion Baht) and

Impaairment Loss of Loanns (Million Baht)

Cost to Income Ratio (%)

and Credit Cost (%) Impairment Losss of Loans from norm mal business operatioon

Other Operating Exxpenses Cost to Income Raatio

Impairment Losss of Loans - Special Provision 1 19,721

Credit Cost from m normal business opperation

20,626

2,216 1,110 6,376

5,059 55,073 4,973 51.73 50.79 5 50.73

4Q15

1Q16

2Q16

5,1182

5,398

500.48

52.15

Q16 3Q

4 49.75

2015

4Q16

2440 1,4451 0.76

51.05

2016

464 1,332 0.70

2355 1,1774 0.666

206 1,474

205 1,161 0.64

0.84

4Q Q15 1Q16 2Q116 3Q16 4Q166

2015

0.80

5,141

0 0.72 2 2016

Corp porate Incom me Tax As att 31 Decemb ber 2016, the Bank has tax losses to otaling 14,66 69 million baaht, equivalent to a tax benefit of 2,93 34 million ba aht, based on n a 20 percen nt corporate income tax rrate. Profit Attributable to the e Bank Net P In 20 016, net proffit attributab ble to the Ba ank totaled 12,434 millio on baht, an increase off 1,691 millio on baht or 15.74 1 percen nt. Earnings per share (E EPS) was 2.05 baht, an iincrease from m 1.90 baht in the same e period las st year. ROA AA and ROA AE were 1.2 29 percent aand 10.27 percent p ectively. respe For the 3 months ended Unaudited Financial Statements

3 31-Dec-16

30-Sep-16

For the year endeed 31-Dec-15

31-Dec-16

31-DDec-15

Net Profit (Million Baht) Profit for the period

3,354

3,242

2,858

12,838

11,126

Net Profit Atttributable to the Bannk

3,230

3,202

2,767

12,434

10,743

Net Profit Atttributable to Non-coontrolling interests

124

40

91

404

383

Basic Earninng per Share (Baht)

0.53

0.53

0.46

2.05

1.90

Net Profit P (Million Baht) ROAA และ ROAE (%) Net Profit ROAA

ROAE

12,434 10,7433

3,158 2,844 2,703 2,713 2,767 2,561 10.16 9.61 9.79 9.91 9.50 1..06 1Q155

10.59 10.46 10.42 1.31

1.13

1.12

2Q15

2Q15

1.12

3,202 3,,230

1.34

1..36

10.27 1.29

1.11

1.17

4Q15 1Q16

9.833

2Q16

3Q16

4Q Q16

2015

2016

8

Financ cial Positio on

Consolidatted Statements off Financial Positioon

31 December 20166 4.99

5.87

+/(-) (10,107)

175,081

18.42

171,7822

17.51

3,299

1.92

2,253

0.24

1,9000

0.19

353

18.58

691,527

7 72.75

714,1244

72.80

(22,597)

(3.16)

(24,618)

( (2.59)

(25,6800)

(2.62)

1,062

(4.14)

Property Foreclosed F -net

3,112

0.33

4,0933

0.42

(981)

(23.97)

Land, Prem mises, and Equipmeent -net

9,546

1.00

8,0055

0.82

1,541

19.25

Investment-net mpany-net Investment in Associated Com C and Accrrued Interest Receivvables Loans to Customers

%

%

% (17.55)

Amount 57,5833

Interbank and Money Market Items-net

Am mount 47,476

Unit: Million M Baht Change

31 Deceember 2015

Allowance for Doubtful Accounts and Revaluattion Allowance for Debt D Restucturing

Intangible Assets A Acquired in a Business Combination–net

2,698

0.28

3,0033

0.31

(305)

(10.16)

Goodwill

17,951

1.89

17,9511

1.83

-

-

Other Assets

25,485

2.68

28,2111

2.88

(2,726)

(9.66)

Total Assetss

950,511

1000.00

980,9722

100.00

(30,461)

(3.11)

Deposits

676,557

7 71.18

669,5044

68.25

7,053

1.05

Interbank and Money Market Items

65,834

6.93

85,6888

8.74

(19,854)

(23.17)

Debt Issueed and Borrowings

49,409

5.20

71,6411

7.30

(22,232)

(31.03)

Other Liabbilities

32,591

3.43

36,4488

3.72

(3,857)

(10.58)

824,391

8 86.73

863,2811

88.00

(38,890)

(4.50)

124,488

13.10

116,2266

11.85

8,262

7.11

1,632

0.17

1,4655

0.15

167

11.40

126,120 950,511

13.27 1000.00

117,6911 980,9722

12.00 100.00

8,429 (30,461)

7.16 (3.11)

Total Liabilitiies Shareholders' Equity of the Baank Non-controlling Interests Total Sharehholders' Equity Total Liabilitiies and Shareholdeers' Equity Book Value per Share (Baht)

20.80

19.411

Average number of share

6,065

5,6411

As of period ended

6,065

6,0655

Number of isssued and paid-up share s capital (Millionn Share)

Asse ets As off 31 Decemb ber 2016, the e Bank and its subsidia aries’ total assets a totaleed 950,511 million m baht,, a decrease e of 30,461 million m baht or 3.11 perc cent from the e end of 20155. The key ch hanges are a as follows: ■

Net interbank and money m marke et items werre in the amo ount of 47,4776 million ba aht, an e of 10,107 million m baht o or 17.55 perc cent from the end of last yyear, mainly due to increase liquidity managemen nt

■

Net inve estments tota aled 175,081 1 million baht, an increas se of 3,299 m million baht or o 1.92 percent from the end d of last yearr, mainly due e to financial assets manaagement bas sed on nistic timing in the marke et. opportun

9

Loans and accrued in nterest receivvables totaled d 691,527 miillion baht, a ddecrease of 22,597

■

st year. This was w mainly ddue to hire purchase million baht or 3.16 percent from tthe end of las hich decrease ed by 5.39 p percent follow wing a slow automotive veehicles marke et while loans wh other rettail loans grew w 9.93 percen nt from the en nd of last yea ar, especially housing loan n which grew 10 0.65 percent. Corporate a and SME loa ans decrease ed 5.29 perccent from las st year. Furtherm more, the Bank put focuss on asset qu uality improvement and N NPL reductio on. The proportio on of retail to corporate an nd SME loans s was 69 to 31 3 percent. The details of o loan break kdown were as follows:

HP

8 800,000 7 700,000

4.47 7%

Hous sing

Corpora ate

Other

4.56%

4.34%

4.14%

10.17%

9.99%

10.40%

1 10.38%

4.10 0%

4.20%

10.6 60%

10.73%

10.76%

20.79 9%

20.60%

21.52%

21.41%

2 21.18%

20.4 42%

19.82%

20.35%

11.73 3%

12.03%

12.42%

12.87%

1 13.44%

14.3 30%

14.76%

14.71%

53.14 4%

52.65%

51.74%

51.18%

5 50.97%

9% 50.59

50.49%

50.01%

1Q1 15

2Q15

3Q15

4Q15

1Q16

2Q1 16

3Q16

4Q16

9.87 7% 6 600,000 5 500,000 4 400,000

SME

4.03%

4.18%

3 300,000 2 200,000 1 100,000 -

Unit: Million M Baht L Loans

3 31-Mar-15 30-Jun-155 30-Sep-15 31-Dec--15 31-Mar-16 30-JJun-16 30-Sep-16 31-Dec-16

Changee from 31-Deec-15 Amount

%

Change from 30-Seep-16 Amount

%

151,733

147,881

153,586

152,7729

148,167

1440,347

134,596

140,601

(12,128)

-7.94%

6,005

4.46%

SME

72,027

73,053

71,298

74,2234

72,588

7 72,854

72,851

74,345

112

0.15%

1,494

2.05%

Retail

492,565

483,626

477,216

476,2241

469,151

4665,092

463,317

467,602

(8,639)

-1.81%

4,285

0.92%

- Hire Purchaase

Corporate

387,855

378,009

369,309

365,160

356,517

3447,694

343,300

345,493

(19,667)

-5.39%

2,193

0.64%

- Housing

85,634

86,342

88,637

91,8820

94,033

9 98,262

100,274

101,598

9,778

10.65%

1,324

1.32%

- Other

19,076

19,274

19,270

19,2260

18,601

19,136

19,742

20,510

1,250

6.49%

768

3.89%

13,511 729,836

13,433 717,992

11,742 713,843

10,2264 713,4466

9,576 699,483

9,075 6887,368

8,385 679,149

8,359 690,907

(1,904) -18.55% (22,559) -3.16%

(26)) 11,758

-0.31% 1.73%

Other* Total Loans

* Other loans include loan of TS AM MC and staff loan.

Liabiilities The Bank and its subsidia aries’ total liabilities as of 31 Dec cember 20166 totaled 82 24,391 on baht, a decrease d off 38,890 mil lion baht orr 4.50 perce ent from thee end of 2015. The millio key cchanges are as follows:

10

U Million Baht Unit:

31 December 20016

Depossits and Debt Issued and Borrowings

Amount

Channge

31 December D 2015

%

Amount

%

+/(-)

%

Currennt

11,427

1.57

9 9,786

1.332

1,641

16.77

Savinggs

296,978

40.91

2588,930

34.994

38,048

14.69

Leess than 6 Months

39,442

5.43

388,632

5.221

810

2.10

6 Months and up to 1 Year

93,129

12.83

1222,076

16.447

(28,947)

(23.71)

Over 1 Year

110,088

15.16

1266,482

17.007

(16,394)

(12.96)

Certificcate of Deposit

125,493

17.29

1133,598

15.333

11,895

10.47

Total Deposits D

676,557

93.19

6699,504

90.333

7,053

1.05

49,409

6.81

71,641

9.667

(22,232)

(31.03)

725,966

100.00

741,145

100.000

(15,179)

(2.05)

Fixed Deposits D

Debt Isssued and Borrowinngs Total Deposits D and Debt Issued and Borrowwings ■

Depositss totaled 676 6,557 million baht, an inc crease of 7,053 million baaht or 1.05 percent p from the e end of las st year. Thiss was due to deposit restructuring r and cost of o fund manage ement following a strategiic liquidity management. CASA to o total depos sits portion w was 45.58 percent, p an in ncrease from m 40.14 perc cent at the end of last year.

■

Debt isssued and borrowings tota aled 49,409 million bahtt, a decreasee of 22,232 million baht or 31.03 3 percen nt, which wass mainly due e to the maturity of short-tterm debentures.

Deposits Breakdown B CASA

800,000

FIX X

700,000 600,000 500,000 400,000

61.11% 59.86% 56.97% 64.12% 66.442% 65.27% 64.24% 63.00% 60.35% % 52.83% 6

53.244% 54.42%

300,000 200,000 100,000

% 47.17% 46.766% 45.58% 38.89% 40.14% 43.03% 3 35.88% 33.558% 34.73% 35..76% 37.00% 39.65%

-

1Q14

2Q114

3Q14

4Q Q14

1Q15

2Q15

3Q15

4Q15

1Q16

2Q16

3Q16

4Q16

Liquidity and Lo oan to Deposit Ratio As off 31 Decemb ber 2016, loa an to deposi t and debt is ssued and borrowing rattio of the Ban nk and its su ubsidiaries was w 95.17 pe ercent, a deccrease from 96.27 perce ent at the ennd of 2015, due to liquid dity managem ment in cohe erent with ma arket conditio on. The Bank maintainedd its strong liquidity with liquid and lo ow risk asse et portion in n high level. As of 31 December D 20016 (Consolidated

11

Finan ncial Statem ment), liquid asset portio on which inc cludes cash, interbank aand money market m itemss and short--term investm ments was 9 9.77 percent of total as ssets, an inccrease from 12.79 perce ent as at the end of 2015 5. The B Bank also pu ut focus on th he implemen ntation of Bas sel III Liquidity Coveragee Ratio (LCR)) and curre ently had bee en maintainin ng LCR ratio of more than n 100 percen nt, higher thaan the regula ated requiirement of the Bank of Th hailand. Sharreholders’ Equity E Sharreholders’ equity e as of 31 Decembe er 2016 was s in the amo ount of 1266,120 million n baht, an in ncrease of 8,429 8 million baht or 7 .16 percentt from the en nd of 2015. T The details are as follow ws. ■

The Bank’ss shareholde ers’ equity wa as in the amo ount of 124,4 488 million bbaht, an incre ease of 8,262 millio on baht or 7..11 percent. This was ma ainly due to a profitable ooperating res sults of the Bank and a its subs sidiaries in 2 2016 which totaled t 12,43 34 million baaht, the land d asset revaluation n of 1,281 million m baht, share of otther comprehensive incoome of asso ociates which incrreased by 317 million b baht, investm ment mark to o market whhich decreas sed by 1,163 millio on baht and 4,549 million n baht dividend payment.

■

Equity attriibutable to non-controllin ng interests was w in the am mount of 1,6632 million ba aht, an increase of o 167 million n baht or 11 1.40 percent, a result of profitable ooperating res sults of subsidiarie es.

Non--performing g Loans : NP PLs

TBBANK (Consol.) 31-Dec-15

31-Mar-16

30-Jun-16

3 30-Sep-16

31--Dec-16

NPL-gross (Million Baht)

21,681

20,573

18,649

17,906

16,434

Total Allowaance* (Million Baht)

25,893

25,079

24,058

24,407

24,841

NPL-gross to t Total Loans (%)

2.84

2.70

2.59

2.44

2.29

NPL-net to Total T Loans (%)

1.26

1.19

1.13

1.02

1.07

Reserve to Required Reserve (%)

159.33

162.92

165.82

172.39

192.57

R (%) Coverage Ratio

119.42

121.91

129.01

136.31

151.16

* Including revvaluation allowance forr debt restructuring

12

T TBANK Only 31-Dec-15

31-Mar-16

30-Jun-16

3 30-Sep-16

31--Dec-16

NPL-gross (Million Baht)

15,986

15,158

13,555

12,877

12,892

Total Allowaance* (Million Baht)

20,367

19,720

18,874

19,047

19,550

NPL-gross to t Total Loans (%)

2.20

2.09

1.99

1.86

1.90

NPL-net to Total T Loans (%)

1.15

1.13

1.08

0.98

1.05

Reserve to Required Reserve (%)

171.94

182.18

186.43

195.57

202.23

Coverage Ratio R (%)

127.41

130.10

139.24

147.91

151.64

* Including revvaluation allowance forr debt restructuring

Altho ough market and econom mic conditio ns improved d gradually, the Bank a nd its subsiidiaries mana aged to reduce NPL through systema atic and effec ctive control. Consequenttly, NPLs had d been a ste eady decline for the past 10 quarterss. NPL as of 31 Decemb ber 2016 waas at 16,434 million baht, a decrease of 5,247 million baht or 2 24.20 percen nt from the end of last yeear. NPL ratio o of the ent, a reduction from 2.84 4 percent at tthe end of las st year. Bankk and its subssidiaries was at 2.29 perce For B Bank only, NPLs was red duced by 3,09 aht from the end of last yyear. Conseq quently, 94 million ba NPL ratio of the Bank B was at 1.90 percent, a reduction from f 2.20 perrcent at the ennd of last yea ar. Cove erage ratio of the Bank k and its su ubsidiaries as of 31 De ecember 20016 was at 151.16 1 percent, an incrrease from 119.42 1 perce ent at the end e of Decem mber 2015. The Bank and a its e an excess reserve of 11,941 millio on baht and a reserve too required re eserve subsidiaries have ercent as of 31 Decembe er 2016, an increase from m 159.33 peercent at the end of ratio of 192.57 pe ember 2015. Coverage ratio of th he Bank as s of 31 Dec cember 20116 was at 151.64 1 Dece percent, an incrrease from 127.41 perc cent at the end e of Dece ember 2015.. The Bank has h an excess reserve of o 9,883 million baht and d a reserve to o required re eserve ratio of 202.23 pe ercent, an increase from 171.94 perc cent at the en nd of Decem mber 2015.

Non-performing Loans (Milllion Baht) and

Coverrage Ratio (%) annd Reserve to Reequired

a Its Subsidiarries NPL Ratio (%) of TBANK and

Reserrve (%) of TBANK and Its Subsiddiaries Coverage Raatio

Non-perform ming Loans NPL Ratio 21,681

4Q15

192..57

20,573

159.333 162.92 165.882 18,649

2.84

Reserve to Required R Reserve Raatio

17,906

2.70

2.59

4 2.44 16,43 2.299

1Q16

2Q16

3Q16

4Q166

119.442 121.91

129.01

172.39 1551.16 136.31

4Q115 1Q16 2Q Q16 3Q16 4Q Q16

13

Non-performing Loans (Milllion Baht) and

Coverrage Ratio (%) annd Reserve to Reequired

NPL Ratio (%) of TBANK

Reserrve (%) of TBANK Coverage Ratio

Non-perform ming Loans NPL Ratio

Reserve to Required R Reserve Raatio

171.94 15,986

182.18 186.443

15,158 13,555

2.20

2.09

12,877 12,892 1.99 1.86 1.900

4Q15

1Q16

2Q16

3Q16

139..24

127.441 130.10

4Q166

4Q15

1Q16

2Q Q16

195.57 202.23

151.64

147.91

3Q16

4Q16

Capital Adequac cy The Bank k had capitalls according to Basel III regulation inn a total of 13 30,673 millio on baht as off 31 Decemb ber 2016, of w which 90,561 million bah ht was Tier I capital and 40,112 4 millio on baht was Tier T II capita al. BIS ratio w was at 19.15 percent, of which 13.27 percent was s Tier I capital and 5.88 percent p was Tier II capita al, as compa ared to BIS ra atio of 17.92 percent in th he end 015. of 20

Unit: Percent T TBANK's Capital Ratio R

TBANK's Capital C Adequacy

4Q16

3Q16

2Q Q16

1Q16

Minimum requuirement by BO OT

Total Comm mon Equity Tier I too Risk-weighted Asssets

13.27

13.70

12.91

12.331

5.125

Total Tier I to t Risk-weighted Assets A

13.27

13.70

12.91

12.331

6.625

Total Tier II to Risk-weighted Assets

5.88

6.00

5.93

5.991

2.500

19.15

19.70

18.84

18.222

9.125

Total Capital to Risk-weighteed Assets

Operatting Results of Sub bsidiaries Unit:: Million Baht

Subsidiaries

% holdingg Direct/Indirrect

Net Profit (Loss) 4Q16

3Q16

4Q15

2016

2015

Thanachart Bank B Plc. Consolidated Financial Stattements

3 3,230

3,2002

2,767

12,434

10,743

Thanaachart Securities Plc.

100.00% %

215

216

122

662

488

Thanaachart Fund Managem ment Company Limitedd

75.00%

85

9 93

80

355

320

Thanaachart Insurance Plc.

% 100.00%

231

2556

219

1,005

1,117

TS AM MC Company Limited

100.00% %

(19)

1663

(71))

189

(18)

Ratchhthani Leasing Public Company C Limited

65.18%

237

218

169

881

749

14

Thanachart Securitties Public Company C Li mited Average e daily trading volume of Thanachart Securities Public P Compa any Limited in 2016 was s 3,921 million b baht, an incre ease from 3,275 million baht in a year earlier. Th he average ddaily trading of the company was in line e with the ov verall stock market cond dition. Marke et share of seecurities trad ding in 2016 wa as at 4.17 pe ercent, an increase from 4.07 percen nt of the prev vious year. T The trading volume v could be e divided intto 60.10 percent of retaiils, 11.30 pe ercent of insttitutions, andd 28.60 perc cent of foreign investors. ear ended 31 Decembe r 2016 amou unted to 662 2 million baaht, an increase of Net proffit for the ye 35.66 pe ercent comp paring with th he previous yyear. Total in ncome was 2,157 2 millionn baht, an inc crease of 14.37 7 percent. Ma ain sources of o income co mprised of 1,604 million baht in incom me from brok kerage fees and d 207 million n baht in inte erest income e on margin loans. l Fees and service income amo ounted to 131 m million baht, an increase e of 31 millio on baht from m investment banking feees. Financial costs and seccurities expen nses were 255 2 million b aht, showing g a slight inc crease from the previous s year. Operatin ng expensess amounted to o 1,085 millio on baht, a de ecrease of 2.25 percent. As of 31 December 2016, 2 the co ompany main ntained its liq quidity ratio (N Net Liquid C Capital Rules:: NCR) 2 percent, hig gher than the e minimum rrequirement regulated by y the Securitties and Exc change at 47.92 Commisssions (SEC)) of 7.00 perc cent of generral indebtedn ness and sec curities pledgged. Thanachart Fund Management M t Company L Limited As of 3 31 Decembe er 2016, Tha anachart Fu und Management Company Limited had asset under management of 189,008 million baht, an inccrease of 22,654 million baht b or 13.622 percent fro om the end of 2 2015. Assetss under man nagement co omprised of 84.59 perce ent mutual fuunds, 8.00 percent p private ffunds, and 7..41 percent provident p fun nds. Mutual ffund businesss of the company rankked 8 with market m share of 3.44 perrcent. Privatte fund businesss ranked 10 with markett share of 2. 04 percent (As ( of 30 No ovember 20116) while pro ovident fund bussiness ranked 13 with ma arket share o of 1.45 perce ent (As of 30 November 22016). For operrating resultss of 2016, th he company y had a net profit p of 355 5 million bah ht, an increase of 35 million baht orr 10.94 perc cent from th he previous year. This was w due to increases in fund manage ement fees. Thanachart Insuran nce Public Company C Li mited In 2016, Thanacharrt Insurance Public Com mpany Limite ed had totall insurance premium of 6,420 baht, an incre ease of 332 million baht or 5.45 perc cent when co ompared withh that of 2015. The million b increase e in total insurance prem mium was hig gher than th hat of the Th hai insurancee industry which is expected d to grow byy 2.5 – 3.0 pe ercent.

15

For ope erating results of 2016, the compan ny had a ne et profit of 1,005 million n baht, a dec crease of 112 million bah ht or 10.03 percent com mparing to that t of the year y 2015. T This was due to a o investme ents. The ma ain factors affecting a the e company’ss performanc ce and reduction in gains on et profit were e a focus on the profitable products aas well as efficient e contributing to the company’s ne ement of claim m expenses.. manage TS AMC C Company Limited In 2016, TS AMC Company C Lim mited has b een restructturing and selling non-peerforming de ebts in b pla n of Thanachart Group continuously. c . As a result,, on 31 accordance with the policy and business ber 2016, the e company’s the total a assets were e 2,651 million baht, a d decrease off 1,213 Decemb million baht or 31.39 percent from the e nd of the previous p yea ar. For operrating result of the mpany had a net profitt of 189 milllion baht, an increase oof 207 million baht year 2016, the com e previous ye ear. Net interrest income a and non-inte erest income were 164 m million baht an nd 322 from the million b baht, respectively while non-interest e expenses we ere 162 millio on baht. Ratchth hani Leasing g Public Com mpany Limitted At the e end of 2016,, Ratchthani Leasing Pu ublic Company Limited has h still had a strong fin nancial structure e. The company’s total assets were 3 33,365 million baht, an in ncrease of 3,,860 million baht b or 13.08 pe ercent from the t end of th he previous yyear. As well, the company had hirre purchase loans in the a amount of 32 2,748 million baht, an iincrease of 3,827 millio on baht or 1 3.23 percen nt. The hire purchase loan ns accounte ed for 98.15 5 percent of o the total assets. Tootal liabilitie es and olders’ equityy were 28,356 6 million bah ht and 5,009 million baht, respectivelyy. shareho Net proffit for the ye ear 2016 am mounted to 8 881 million baht, b an increase from tthe previous year of 132 m million baht or 17.62 pe ercent. Total income amo ounted to 2,9 985 million b aht, an incre ease of 203 milliion baht or 7.30 7 percent,, due to the ffact that the company wa as able to coontinue maintaining its market share in hire h purchase e loans. At th he same time e, interest ex xpenses werre 947 million n baht, ase of 69 miillion baht or 6.79 percen nt. This was a result of itts ability to aacquire lower costs a decrea of borrow wings to sup pport lending during the yyear 2016. Provision P expenses amouunted to 496 million baht, an n increase of o 84 million baht or 20 0.39 percent. This was due d to its ddecision to provide p additiona al provision to t support th he economic uncertainties.

Disclaimer Thanacharrt Bank Public Company C Limited d (‘the Bank’) h ad provided this s report to publish the Bank’s pperformance. Infformation contained iin this report is th he Bank’s past performance. Som me information may m be based on financial informaation and any infformation from the otther sources as of o the date of this s report, which aare subject to be changed accord ding to economiees and politics bo oth inside and outsid de country. The readers or recip pients should coonsider the inforrmation carefully y and please usse your discretio on before making a d decision in any tra ansaction. Howe ever, the Bank re eserves the right with its own disc cretion to amend or modify the infformation contained iin this report with hout any prior notice. The Bank sshall have no responsibility for any inaccuracy, inaappropriate or incomplete of any inforrmation containe ed in this report.

16

Thanachart Bank Public Company Limited and its subsidiaries Statement of financial position As at 31 December 2016 (Unit: Thousand Baht) Consolidated

Separate

financial statements

financial statements

2016

2015

2016

2015

(Unaudited)

(Audited)

(Unaudited)

(Audited)

Assets Cash

12,076,997

13,337,280

12,072,227

13,336,176

Interbank and money market items - net

47,475,583

57,583,120

47,465,946

56,941,123

3,564,235

5,446,810

3,563,917

5,446,786

175,081,237

171,782,138

167,275,226

163,667,389

2,253,187

1,899,982

7,359,391

7,359,391

739,078,351

764,002,978

695,679,822

722,792,730

619,974

657,621

620,272

657,840

Total loans to customers and accrued interest receivables

739,698,325

764,660,599

696,300,094

723,450,570

Less: Deferred revenue

(48,171,212)

(50,536,590)

(44,066,834)

(46,791,967)

(24,615,884)

(25,676,138)

(19,300,696)

(20,141,589)

(1,976)

(4,080)

(1,976)

(4,080)

Derivatives assets Investments - net Investments in subsidiary and associated companies - net Loans to customers and accrued interest receivables Loans to customers Accrued interest receivables

Allowance for doubtful accounts Revaluation allowance for debt restructuring Net loans to customers and accrued interest receivables

666,909,253

688,443,791

632,930,588

656,512,934

9,544

9,944

9,544

9,944

Properties foreclosed - net

3,111,894

4,093,136

1,443,860

1,837,462

Land, premises and equipment - net

9,546,383

8,004,706

9,295,669

7,764,063

Goodwill and intangible assets - net

20,649,159

20,953,948

20,533,529

20,856,782

790,631

740,976

-

-

Receivables from purchase and sale of securities

1,125,862

1,006,278

-

-

Other assets - net

7,917,733

7,670,312

4,917,923

5,102,392

950,511,698

980,972,421

906,867,820

938,834,442

Customers' liability under acceptances

Deferred tax assets

Total assets

...............................................................

...............................................................

(Mr.Somjate Moosirilert)

(Mr.Peter Clifford Bessey)

Chief Executive Officer and President

Deputy Chief Executive Officer

Thanachart Bank Public Company Limited and its subsidiaries Statement of financial position (continued) As at 31 December 2016 (Unit: Thousand Baht) Consolidated

Separate

financial statements

financial statements

2016

2015

2016

2015

(Unaudited)

(Audited)

(Unaudited)

(Audited)

Liabilities and equity Deposits

676,556,502

669,504,133

677,807,238

670,575,221

65,834,486

85,687,630

56,155,845

78,698,898

Liability payable on demand

1,986,425

2,201,580

1,986,425

2,201,580

Derivatives liabilities

4,912,489

6,757,528

4,912,407

6,750,929

49,408,917

71,641,089

34,522,128

55,426,489

9,544

9,944

9,544

9,944

3,578,928

3,293,614

3,340,786

3,046,619

867,710

893,302

799,034

873,765

Payables from purchase and sale of securities

2,366,288

2,072,513

1,000,000

-

Accrued interest payables

2,053,948

2,962,116

1,969,591

2,859,200

Accrued expenses

5,113,739

4,960,675

4,400,753

4,298,048

Insurance contracts liabilities

4,936,796

4,793,269

-

-

Other liabilities

6,765,334

8,504,301

4,379,393

6,043,743

824,391,106

863,281,694

791,283,144

830,784,436

99,136,649

99,136,649

99,136,649

99,136,649

60,648,622

60,648,622

60,648,622

60,648,622

Share premium

2,100,694

2,100,694

2,100,694

2,100,694

Other components of equity

1,556,365

1,121,529

947,584

820,220

3,601,763

3,003,674

3,601,763

3,003,674

56,581,148

49,351,232

48,286,013

41,476,796

124,488,592

116,225,751

115,584,676

108,050,006

1,632,000

1,464,976

-

-

Total equity

126,120,592

117,690,727

115,584,676

108,050,006

Total liabilities and equity

950,511,698

980,972,421

906,867,820

938,834,442

-

-

-

-

Interbank and money market items

Debt issued and borrowings Banks' liability under acceptances Provisions Deferred tax liabilities

Total liabilities Equity Share capital Registered 9,913,664,903 ordinary shares of Baht 10 each Issued and paid-up share capital 6,064,862,170 ordinary shares of Baht 10 each

Retained earnings Appropriated - statutory reserve Unappropriated Equity attributable to owner of the company Non-controlling interests of the subsidiaries

...............................................................

...............................................................

(Mr.Somjate Moosirilert)

(Mr.Peter Clifford Bessey)

Chief Executive Officer and President

Deputy Chief Executive Officer

Thanachart Bank Public Company Limited and its subsidiaries Statement of comprehensive income For the year ended 31 December 2016 (Unit: Thousand Baht except earnings per share expressed in Baht) Consolidated

Separate

financial statements

financial statements

2016

2015

2016

2015

(Unaudited)

(Audited)

(Unaudited)

(Audited)

Profit or loss Interest income

44,885,834

48,217,216

41,843,450

45,124,869

(16,174,138)

(20,536,160)

(15,295,196)

(19,572,064)

28,711,696

27,681,056

26,548,254

25,552,805

8,814,210

8,179,528

6,423,610

6,132,836

(2,909,701)

(2,704,730)

(2,642,782)

(2,488,314)

5,904,509

5,474,798

3,780,828

3,644,522

Gains on trading and foreign exchange transactions

491,315

658,040

435,055

629,881

Gains on investments

714,390

1,532,714

616,243

1,491,635

Share of profit from investments accounted for under equity method

206,567

169,095

-

-

6,035,644

5,961,637

-

-

399,846

295,456

2,828,821

3,346,744

Other operating income

1,290,019

1,274,436

1,298,917

1,328,581

Total operating income

43,753,986

43,047,232

35,508,118

35,994,168

Insurance expenses

(3,346,848)

(3,409,215)

-

-

Net operating income

40,407,138

39,638,017

35,508,118

35,994,168

11,646,882

10,952,116

9,889,374

9,269,982

45,641

43,967

33,995

32,809

3,051,097

2,969,738

2,728,323

2,646,065

757,490

837,225

732,235

785,683

5,124,715

4,918,207

4,459,267

4,361,705

20,625,825

19,721,253

17,843,194

17,096,244

6,251,266

8,591,933

5,808,275

8,007,369

13,530,047

11,324,831

11,856,649

10,890,555

105,118

561,413

11,961,767

11,451,968

Interest expenses Net interest income Fees and service income Fees and service expenses Net fees and service income

Insurance income Dividend income

Other operating expenses Employee's expenses Directors' remuneration Premises and equipment expenses Taxes and duties Other expenses Total other operating expenses Impairment losses of loans and debt securities Profit before income tax Income tax

(691,423)

Profit for the year

12,838,624

(198,421) 11,126,410

...............................................................

...............................................................

(Mr.Somjate Moosirilert)

(Mr.Peter Clifford Bessey)

Chief Executive Officer and President

Deputy Chief Executive Officer

Thanachart Bank Public Company Limited and its subsidiaries Statement of comprehensive income (continued) For the year ended 31 December 2016 (Unit: Thousand Baht except earnings per share expressed in Baht) Consolidated

Separate

financial statements

financial statements

2016

2015

2016

2015

(Unaudited)

(Audited)

(Unaudited)

(Audited)

Other comprehensive income Transactions will be reclassified subsequently to profit or loss Losses on changes in value of available-for-sale securities

(1,454,017)

(1,162,976)

Share of other comprehensive income of associate (loss)

153,392

(75,640)

Income tax relating to components of other comprehensive income

275,449

(1,438,751)

(672,332)

-

-

240,868

287,750

134,467

1,605,507

-

1,602,581

-

199,361

-

-

-

Transactions that will never be reclassified subsequently to profit or loss Surplus on revaluation of assets Share of other comprehensive income of associate Actuarial gains (losses) on defined benefit plan Income tax relating to components of other comprehensive income Total other comprehensive income (loss)

Total comprehensive income

16,041

(214,270)

(11,894)

(177,661)

(344,233)

41,507

(318,137)

35,532

121,549

(679,994)

451,500

(1,170,511)

13,290,124

9,955,899

12,083,316

10,771,974

12,434,329

10,742,829

11,961,767

11,451,968

404,295

383,581

12,838,624

11,126,410

12,886,025

9,573,026

12,083,316

10,771,974

404,099

382,873

13,290,124

9,955,899

Total profit attributable to: The Bank Non-controlling interests

Total comprehensive income attributable to: The Bank Non-controlling interests

Earnings per share of the Bank Basic earnings per share Profit attributable to the Bank (Baht per share)

2.05

1.90

1.97

...............................................................

...............................................................

(Mr.Somjate Moosirilert)

(Mr.Peter Clifford Bessey)

Chief Executive Officer and President

Deputy Chief Executive Officer

2.03