2005 - Asianbanks.net

Operating Results
Operating results of the Bank and its subsidiaries for 2005 showed a net profit of Baht 6,265 million. Net
interest and dividend incomes totaled Baht 11,565 million and non-interest income totaled Baht 4,620 million.
Non-interest expenses stood at Baht 9,600 million, reserve for bad debts and doubtful debts at Baht 299
million, reversal of loss from debt restructuring at Baht 35 million and income tax at Baht 56 million. When
compared to 2004 profit of Baht 6,367 million, the 2005 results showed a decline of Baht 102 million, or 1.60%.
The profit decline was attributable to the reduced profit from sale of investments, allowance for diminution of
values of foreclosed properties and other properties, allowance for diminution of values of Bank , s unused
properties and reserve for contingent liabilities in accordance with the Bank of Thailand , s new regulations. In
2005, the Bank earned a profit of Baht 2.97 per share.
Net Interest and Dividend Incomes
The Bank earned net interest and dividend incomes of Baht 11,565 million in 2005, an increase of Baht
1,555 million over 2004, or a 15.53% increase, due to business expansion and efficient cost management.
Non-interest Incomes
In 2005, the Bank earned non-interest incomes of Baht 4,620 million, a decrease of Baht 636 million or
12.10%, when compared to non-interest incomes of Baht 5,256 million in 2004. This was due to decrease of
profit from sales of investments of Baht 860 million.
Non-interest Expenses
The Bank incurred non-interest expenses of Baht 9,600 million in 2005, an increase of Baht 1,264 million
or 15.16%, when compared to non-interest expenses of Baht 8,336 million in 2004. The increase was largely due
to allowance for diminution of values of properties and reserve for contingent liabilities in the amount of Baht
753 million.
Bad Debts and Doubtful Debts
The Bank in 2005 set aside a reserve for bad debts and doubtful debts of Baht 299 million. At the end
of 2005, the Bank’ s reserve for bad debts and doubtful debts was Baht 7,264 million, Baht 3,575 million or
96.91% higher than the level required by the Bank of Thailand.
Annual Report 2005 27