Cimbt 09

Contents

Financial Highlights 4

Message from Chairman 6

Message from CEO 8

Message from Group Chief Executive 10

CIMB Thai in synergy 14

CIMB Thai in 2009 18

Board of Directors 22

Board of Directors’ Profi le 24

Management Committee 28

CIMB Thai in snapshot 32

Organization Chart 34

Management Committee’s Profi les 36

Business Review 38

Thai Economy in 2009 and Outlook in 2010 48

Analysis of Financial Standing and 50

Operating Performance

Risk Factors and Risk Management 56

Good Corporate Governance 62

Audit Committee Report 95

Statement on the Board of Directors 97

Responsibility for Financial Statements

Report of Independent Auditor 98

Financial Statements 100

Company Information 170

List of Branches 175

In this document the terms ‘Bank’ refer to CIMB Thai and the terms ‘Group’ refer to CIMB Thai and its subsidiaries.

Foundation

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At Year End

Consolidated fi nancial statements

Separate fi nancial statements

Net Income composition

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Return on Equity

Return on Asset

Share Price

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illion


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Separate fi nancial statements

At Year End

Consolidated fi nancial statements

We embark with con dence and we remain committed enhancing our performance.

Financial Statement

6 CIMB Thai Bank PCL . : Annual Report 2009

I am pleased to present my first annual report as

Chairman of CIMB Thai (“the Bank”).

The year 2009 was the most challenging year for

the Thai banking industry since the 1997-1998 financial

crisis. Two major incidences, the global financial crisis

and political tension, came about almost simultaneously.

As a result, all headwinds forced the Thai economy to

contract by 2.3%, the first contraction since 1997.

Hence, it gives me added pleasure to report that

CIMB Thai not only weathered the storm well; it emerged

renewed and strengthened. After 3 years of losses, in 2009,

CIMB Thai Group returned to the black by registering a net

profit of THB 1.7 million.

This glowing result was achieved with much hard

work. Of particular note is the expansion in Non Interest

Income on the back of robust fee income, dividend income

Message from Chairman

CIMB Thai Bank PCL . : Annual Report 2009 7

and gains from sale of investments. In addition, strategies

in rightsizing the deposit book via better balance sheet

management had lowered funding cost and helped improve

the bank’s Net Interest Margin further. With careful lending

practice and better risk management, the Bank was able

to better control its non-performing loans (NPLs). NPLs

only slightly increased from 4.66% of total loans in 2008

to 5.97% in 2009. However the NPL increase was not

caused by additional bad loans, but instead was attributed

to the decrease in the loan portfolio.

We enter 2010 with confdence, driven by high

levels of client activity and good risk control. The global

economic outlook continues to be positive and we are well

positioned to capture further growth in the years ahead.

CIMB Thai is definitely determined to take all

necessary measures to continue to the path of profitability

and performance for shareholders. We are convinced

that the decisive actions we have taken, and the strength

of our platform combined with the right business model,

enable CIMB Thai to face the future with confidence. I look

forward to working with the Board and the management

to build on this platform and continue to take CIMB Thai

forward.

Yours sincerely,

Mr. Chakramon Phasukavanich

Chairman

Bangkok, April 2010

CIMB Thai is definitely determined to take all necessary measures to continue to the path of profitability and performance for shareholders.


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Profi le of CIMB Group roup i a a ia econd arge t

nancia er ice pro ider and one of outhea t ia eading uni er a banking

group . t ha the arge t retai network in the region with branche offering fu uni er a banking capabi itie in a a ia ndone ia hai and and ingapore and er ing o er mi ion cu tomer . With a tota taff trength of about the roup reache

of the popu ation repre enting of gro dome tic product.

re ent in countrie roup i a o the ing e arge t hareho der of hai in

hai and and the ma orit hareho der of iaga in ndone ia.

roup i i ted on the ain oard of ur a a a ia ia roup o ding erhad

former known a umiputra ommerce o ding hd . at ecember

the roup wa ranked the rd arge t compan on ur a a a ia with a market capita i ation of

about bi ion mi ion .

“ I’ve been a long time

customer of CIMB

Thai, and I am impressed

with the kindness and

services of the staff. For

me, we are one family.”

Mr. Wacharamongkon

Benjathanachat,

President, Bathroom

Design Co. Ltd.

(SME Banking Client)

CI hai as o fi cially launched

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People Synergy

f we ha e earned one thing from the e ent of the pa t ear with tran formation and ac ui ition it i that in uch time c ient mo t need and a ue hone t and e pert ad ice from profe iona who can e p ain ituation and de i er o ution e pecia for high end retai c ient .

t hai we are working hard to he p c ient create con dence in their future. With good working re ation hip and upport from roup fee fortunate to be ab e to work in referred anking at hai.

wa the r t ear for referred anking in hai. eing part of etting the bu ine up i one of the achie ement for me per ona but the bigge t achie ement are the tran formation of peop e and ucce fu imp ementation of idea . u tura difference re ource imitation p atform capabi itie anguage barrier and tight time ine are cha enge that pro en can be defeated.

Vivian Choo,

CIMB Preferred

Malaysian employee seconded to Thailand

in 2009

Transformation

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Securities In ormation

1 Re istered Share Capital

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Corporate rgani ation Structure changed and empower with high uality e pert of their own fi elds.

ew faces came to the bank followed by alignment and rotation of the staff to different business units to stretched and uncover new capabilities.

ew e ecutives came to the board and strengthen the Bank, started with Treasury roup with the new leadership of

aymond Lee, Dr. ongpob Watanasin for uman

esources roup, David Wee for IT and peration, and

arongchai Wongthanavimok as the CF who later join end of 2009.

In ern l Ge oge er

In CIMB Thai we care about our employee, and believe without their contribution, transformation will be comple .

ence, sociali ation on the ac uisition by CIMB communicated time to time in a manner where employee can e press their opinion and concerns to the management through IMP CT portal in the intranet.Departmental briefi ngs have also been conducted to ensure key messages are cascade across the bank.

CIMB Thai believe in high performance culture differentiating people who perform and people who don’t perform.

r n for on per o lleng ng n re u reen e o en

ng

In the th uarter of 2009,Fitch atings assigned the bank ational Long term rating of (tha)’ with Stable utlook. The Stable utlook comeson the back of the bank’s traction with the transformation initiatives and continued storng support from the parent company

CI hai rans ormation

1 3

“The Bank’s transformation to CIMB Thai will hopefully bring in new products and services With their large network across Southeast sia, this will certainly benefi t me and other customers who travel a lot.”Mr. Vararit Plengvanich, CE . Time Deco Co., Ltd.(CIMB Preferred client)

“ ur relationship with the Bank goes a long way back. I am impressed with the effort, the Bank always strive to compete with bigger fi nancial institutions in giving us the best products and services. With the transformation and the support of the new shareholders I can see the Bank’s fi nancial performance increase. I can also see that the Bank is growing, and I look forward towards receiving better services and benefi ts in the future”Mr. mroong Sanphasitvong CP Deputy roup CF .(Investment Banking Client)


Re randin

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Corporate E ents

“My relationship with the Bank

for the past years has been

smooth with our needs well

taken care of The transformation

brought une pected and

rewarding surprises. We were

advised by the Bank to fl oat off

our real estate assets via Initial

Public ffering of publicly listed

property fund. CIMB Thai

assumed the role of an agent

and successfully sold the

issues to its customers.

We are confi dent that

CIMB Thai will be with us

all the way”.

Mr. eti Tuntimontri,

President Montri Warehousing.

(BT sset Management

Co., Ltd. client)


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Ne Product and Ser ices

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“I have been a customer of the Bank for a

long time and it’s good to see that along

the years, there were signifi cant

improvements. The relationship has been

going on for 2 years and I foresee many

more years to come”.

Mr. othin erngchamnong

Director of Modernform roup Pcl.,

(Corporate Banking client)

“I have seen a major transformation in

the products and services offered by

CIMB Thai. In 2009, the new

management of CIMB Thai continued to

support us despite the economic

downturn and this has contributed to our

success today. I truly appreciate what

CIMB Thai has done to support

the nation”.

Mr. Thananchai Santichaikul

President of BC

(Investment Banking Client)

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32 CIMB Thai Bank PCL . : Annual Report 2009

CIMB Thai In SnapshotsCorporate Branding

2009 was a year of transition for CIMB Thai (formerly BankThai), as it became a part of CIMB Group, one of Southeast Asia’s leading banks. With the rebranding exercise successfully completed in May 2009, CIMB Thai now operates with a new name and image.

The new logo is clear and uncluttered, illustrating CIMB’s inherent traits of being stable, dependable and committed, yet displaying flexibility, dynamism and energy. The arrow icon symbolises the Group’s philosophy of forward thinking: never staying still and always looking ahead to discover value for our stakeholders.

More than just a change of image, the re-branding exercise at CIMB Thai signifies the bank’s transformation into a local bank that can offer its customers innovative product and service offerings, backed by the resources of a regional universal banking group. Employing nearly 3,000 people across 147 branches in Thailand, CIMB Thai aims to serve all its customers as customers of CIMB Group, regardless which country they come from or which country they are in.

Corporate events

· 7-9 May 2009: Money Expo 2009 Held at the Queen Sirikit National Convention Center, this was a good opportunity to showcase CIMB Thai to over 700,000 members of the general public who visited the expo to find out more about financial products and services. CIMB Thai won best booth in the large- booth category.

· 18 May 2009: CIMB Thai’s Re-branding The re-branding was officiated by Khun Korn Chatikavanji, Thailand’s Minister of Finance in the presence of over 1,000 guests. Amongst them were Dr Tarisa Watanagase, Governor, Bank of Thailand and Patareeya Benjapolchai, President, Stock Exchange of Thailand.

· 25 May – 16 June 2009: Launch of Maxi Return Structured Deposit The first time CIMB Thai tapped into the structured deposits market. Maxi Return is the pioneer structured deposit from CIMB Thai. The launch of the product substantiates the first phase of the bank’s strategic transformation agenda that is fo cused on strengthening the basic operating position of the bank by executing quick wins and optimising improvement opportunities.

· 9-10 June 2009: Euromoney Thailand Investment Forum Dato’ Sri Nazir Razak, Group Chief Executive, CIMB Group, was a keynote speaker at this forum. Over 2,000 par ticipants from Thai and foreign companies and members of the media attended this event at Centara Grand Hotel, Bangkok.

· 15 July 2009: Alliance with MoneyGram International CIMB Thai Bank announced its alliance with MoneyGram International to provide money transfer services at all CIMB Thai branches from July 2009.

· 30 October 2009: Reception for CIMB Group’s International Advisory Panel The elegant dinner was held at the Thai Royal Navy in conjunction with the panel’s annual meeting in Bangkok. Hosted by CIMB Thai, the reception was attended by CIMB Group’s senior management and select guests and clients of CIMB Thai.

p pp

CIMB Thai Bank PCL . : Annual Report 2009 33

· 11 November 2009: Launch of CIMB Preferred CIMB Thai customers became the first in Thailand to enjoy priority banking and privileges across Southeast Asia, with the launch of CIMB Preferred at Centara Grand Hotel, Bangkok.

· 2 December 2009: Applied Strategies of Energy Reserva tion Project in Hospitals Seminar CIMB Thai, together with the Department of Alternative Energy Development and Efficiency, organised this seminar which awarded seven leading hospitals which successfully implemented energy conservation measures.

· Cultural tours for corporate clients During the year, CIMB Thai hosted two cultural tours for its corporate clients, the first to Nakhon Prathom and another trip from Nakhon Rachasima to Burirum. Over 200 people attended these tours, accompanied by culture expert Professor Paothong Thongchua.

CSR Activities4 May 2009: CIMB Thai gave alms to 61 Buddhist priests. These offerings were made in conjunction with celebrations for the 60th

anniversary of His Majesty the King’s coronation

8 August 2009: CIMB Thai donated THB 2.18 million for renovation works at Wat Mai Amphawan in Nakhon Ratchasima province. This donation is part of the bank’s efforts to preserve the country’s historical sites and precious architecture. The funds were raised at a charity concert organised by CIMB Thai.

9 August 2009: CIMB Thai delivered medical equipment worth THB 78,000 to Bann Roon Health Station in Ayudhaya. Funds for the equipment were raised by CIMB Thai from the public at the Money Expo 2009 exhibition.

10 October 2009: CIMB Thai and its subsidiaries held a robe-offering ceremony at Wat Bann Ao, in Ayutthaya and donated THB 1.2 million to the temple. The Bank also gave educational aids to young students of Wat Bann Ao School.

CIMB Thai, in collaboration with the Thai Red Cross Association, holds blood donation drives four times a year. This annual event, which attracts over 200 donors at a time, encourages bank employees and the general public to give back to society.

Since 2005, CIMB Thai has provided scholarships to 39 students from two schools in Phuket that were affected by the tsunami, Ban Kalim School and Ratchaprachanukror 36 School. Funds for the scholarship—THB 2.15 million—were raised from sales of a music CD produced in collaboration with Carabao Tawandaeng Co, a client of CIMB Thai. The Bank spent a part of this income to build sound and computer laboratories, and buy bicycles for the students and teachers.

Corporate Social Responsibility

Corporate social responsibility (CSR) is a fundamental part of CIMB Thai’s corporate philosophy. In addition to building closer ties with the communities that we serve, we believe that a commitment to CSR will be a key distinguishing factor for the Bank in future.

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