Siam City Bank Public Company Limited

1
Siam City Bank Public Company Limited
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Focus on You
Moodys Credit Review Meeting
April 26, 2004.
2
Siam City Bank Public Company Limited
1. Overview 2. Competitive Strengths 3.
Strategy 4. Performance 5. Industry Outlook
3
SCIB Background

• Founded with initial registered capital of Baht 1
  million
• Listed in the Stock Exchange of Thailand (SET)
• Became A GOOD BANK after transferring its
  NPLs to PAM in exchange for
• FIDF - guaranteed AMC Notes
• Bangkok Metropolitan Bank Pcl. (BMB) merged
  with SCIB which allowed SCIB to become the fifth
  largest bank in Thailand
• Integration process between SCIB and BMB and Core
  Banking System was completed in August 2003
• Re-traded in the SET on Dec 1,2003, with free
  float of 17.5 and increase to 52.5 by Nov,2004
• Having a market capitalization of Baht 53,348
  million on Mar31,2004, ranked 5th in Banking
  sector

1941
1994
2001
2002
2003

2004
4
Vision
To be a leading financial institution that
provides universal services to domestic
businesses and retail customers through its
branch network.
5
SCIBs Management Structure
As of Jan 1, 2004
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Shareholding Structure in Subsidiary Affiliated
Companies
Siam City Bank
Subsidiary companies
Affiliated companies
Max Life Assurance Co., Ltd. 100
Crown Development Co.,Ltd. 1 100
Siam City Insurance Co., Ltd. 45.50
Thai German Products Pcl. 2 25.16
S.A.S. Trading Co., Ltd. 2 34.18
Siam Samsung Life Insurance Co., Ltd. 25.00
Siam City I.T. Co., Ltd. 1 100
Siam City Asset Mgt. Co.,Ltd. 100
The Chada Thong Properties Co.,Ltd. 1 70
Thoon Ruan Kan Co., Ltd 1 33.33
Thai Nam Plastic Pcl. 2 20.47
Siam City Securities Co.,Ltd. 99.78
SCIB Service Co., Ltd. 99.40
Paktai Cheplerng Pcl. 2 30.04
Notes 1 In liquidation process 2
Acquired through debt restructuring
As of Mar 31, 2004
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Business Group Support
Siam City Bank
Max Life Assurance
Siam City Securities
Siam City Asset Mgmt.
Siam City Insurance
SCIB Service
Business Type Financial Highlight Net Profit
(Bt.Million) EPS (Bt./Share) Total Assets (Bt.
Million) Paid up Capital (Bt.Million) Par Value
(Bt./share) Book Value (Bt./share)
Life Insurance
Asset Mgmt.
Securities
Services
Non-Life Insurance
2003
1Q04
2003
1Q04
2003
1Q04
2003
1Q04
Operation start in 2nd quarter
15 0.30 1,274 500 10 12.13
25 0.12 2,093 2,000 10 9.99
7 7,475 19 0.10 100 7,585
14 35.85 341 40 100 330.04
70 1.41 1,171 500 10 11.70
19 0.54 717 500 10 9.46
7 7,054 18 0.10 100 7,164
22 55.30 328 40 100 300.80
As of Mar. 31, 2004
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Products and Services
International Business
Capital Market Service
Insurance
Retail and Commercial Banking
Foreign Currency Deposit
Registrar Service
Life Insurance
Credit Card
Trustee
Deposit
Funds Transfer
Non - Life Insurance
Unit Trust Selling Agent
Consumer Loan
Corporate Loan
Escrow Agent
Import Export Service
Bancassurance
Mutual Fund
Cash Management
Foreign Exchange Service
Brokerage Investment Banking
Electronic Banking
Become a Universal Bank Providing Vast Product
Range
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Shareholding Structure
Current Status
Post-Exercise of Covered Warrant
Exercise of 740 million units of covered warrant
in November 2004
Paid-up Capital Baht 21,128.11 million (2,112.81
million shares _at_ Par Baht 10)
Note Covered warrants can be exercised on daily
basis with a strike price of Baht 20.85 and would
be expired on Nov. 25, 2004.
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Siam City Bank Public Company Limited
1. Overview 2. Competitive Strengths 3.
Strategy 4. Performance 5. Industry Outlook
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Two Years After Acquisition
Unit Baht Million
Dec.2001
Dec.2003
Rank(3)
Mar.2004
Market Share (3)
(2)
Change Mar.04-Dec.01

• Assets
• Loans
• Deposit
• Employee
• Branch
• ATM

56 56 52 51 75 257
297,792 209,527 262,153 4,167 209 195
469,446 322,318 406,862 6,256 365 612
7.67 7.42 7.96 7.48 9.72 7.24
6 6 6 6 6 7
465,139 326,149 397,510 6,281 365 696
14,404 3,631
3,920 2,135
2,024

• Revenue
• Net Profit

(1)
(7,154)
Notes (1) Net Profit before Extraordinary
item Net Profit after
Extraordinary item Baht 38,075 Million
(2) Unreview financial statement
(3) As at Dec.2003
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Clean Balance Sheet with Lowest NPLs
NPLs / Total Loans

Industry 13.61
(Excl.TPI0.63)
(Excl.TPI0.66)
SCIB
SCIB 1Q04(1)
Top 4 KTB, BBL, KBANK, SCB Med 3 SCIB,
BAY, TMB Small 6 UOBR, SCNB, NBANK, BT,DTDB,
BOA
Notes (1) Unreview financial statement
As at Dec. 2003
13
High Loan Loss Coverage Ratio
(1)
Classified Loans (Mar.2004)

Amount Baht Million Active 319,308 96.83 Special
Mention 1,688 0.51 Substandard 633 0.19 Doubtful
7,575 2.30 Bad Debt 551 0.17 Total 329,755 100.0
0
Industry 73


(Excl.TPI515)
(Excl.TPI565)
(1)
Loan Loss Reserve (Mar.2004)
Reserve Provided Baht 8,780
Million Reserve Required by BoT Baht 5,183
Million Excess Reserve Baht
3,597 Million of Excess Reserve
69.40
SCIB
SCIB 1Q04(1)
(1)
Top 4 KTB, BBL, KBANK, SCB Med 3 SCIB,
BAY, TMB Small 6 UOBR, SCNB, NBANK, BT,DTDB,
BOA
Note (1) Exclude reserve for loss from TDR Bt.
2,605 million
Note (1) Unreview financial statement
As at Dec. 2003
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Low Cost/Income Ratio
(1)
Cost / Income Ratio
Income / Employee Expense

Times
Industry 5.3 Times
Industry 59.7
SCIB
SCIB
SCIB 1Q04(2)
SCIB 1Q04(2)
Top 4 KTB, BBL, KBANK, SCB Med 3 SCIB,
BAY, TMB Small 6 UOBR, SCNB, NBANK, BT,DTDB,
BOA
Note (1) Income Net Interest Income Non
Interest Income (2) Unreview financial
statements
As at Dec. 2003
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Solid Capital Base to Support Loan Growth
Tier - 1 Capital

Industry 9.70
(2)
SCIB
SCIB 1Q04(1)
Top 4 KTB, BBL, KBANK, SCB Med 3 SCIB,
BAY, TMB Small 6 UOBR, SCNB, NBANK, BT,DTDB,
BOA
Note (1) Unreview financial statements and after
profit appropriation (2) Before profit
appropriation
As at Dec. 2003
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Distribution Channels Cover High Growth Area
Domestic Branches and Sub-Branches (Dec.03)
9 33 Branches
9 32 Branches
22 80 Branches
Branches
48 176 Branches
12 44 Branches

• Total domestic branches of 365 in every province
  and 1 international branch which cover high
  growth area in Thailand
• Broad network of 696 ATMs nationwide
• Adapt branch model to fit business volume in each
  area

As at Mar. 2004
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Siam City Bank Public Company Limited
1. Overview 2. Competitive Strengths 3.
Strategy 4. Performance 5. Industry Outlook
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Strategy Overview
Broaden Customer Base
Strengthen Corporate Governance

• Emphasize on expanding customer base to small
  size and medium size customers
• Proactive marketing through its 365 branches
  nationwide

• Focus on professional management with good
  governance
• Implements high - standard risk management
  measures

Increase Products Services
Improve Quality Efficiency

• Increase and develop products services to
  satisfy customers needs
• Target its product range to complete to top -
  tier banks
• Utilize subsidiaries and strategic partners

• Enhance service quality
• Enhance capability of workforce

Develop More Efficient Sales Channel
Develop Enhance IT System

• Develop and increase low-cost channels
• Streamline improve branch operations and
  structure

• Implements internet electronic banking
• Implements Customer relationship management
• Implements Profitability measurement system

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Focus Strategy

• Provide full - range services by developing new
  products and services to satisfy customers needs
• Focus on high growth fee-based businesses through
  cross-selling SCIBs group products and services
• Improve asset yield
• Cap cost to income ratio not exceeding 50
• Reduce cost of fund by adjusting deposit
  structure in line with industry
• Maintain good asset quality by controlling NPL
  not exceed 3
• Differentiate service with high personal touch
• Maximize shareholders wealth by increasing ROE
  in line with industry

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Siam City Bank Public Company Limited
1. Overview 2. Competitive Strengths 3.
Strategy 4. Performance 5. Industry Outlook
21
Asset Breakdown
Asset Breakdown
Investment Breakdown
Total Investment Baht 92,529 million
Total Assets Baht 465,139 million
Baht 4,823 Million
Baht 2,945 Million
Baht 84,760 Million
Long Term Investment Breakdown
Note Unreview financial statement
As at Mar. 2004
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AMC Notes
AMC Notes
Terms of AMC Notes

• Issued by PAM in exchange for NPLs transfer
  during 2001 and 2002
• SCIB received 16 AMC Notes, totaling Baht 303,826
  million
• FIDF will redeem Baht 44,000 million of AMC Notes
  annually until 2005 and the remaining portion in
  2006
• AMC Notes carry an interest rate at a weighted
  average of interest rates payable to all types of
  bank deposits
• SCIB does not have to record additional
  gains/losses

Baht Million
(1)
Note (1) Early AMC Note redemption on Mar.04
Baht 3,148 Million
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Loan Portfolio Breakdown
Total Loans Baht 159,465 million
Loans by Sector
Loans by Geography
2 Baht 3,315 Mil.
3 Baht 5,224 Mil.
6 Baht 9,316 Mil.
85 Baht 134,957 Mil.
Loans by Type
4 Baht 6,653 Mil.
Note Unreview financial statement
As at Mar. 2004
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Loan Portfolio Breakdown (cont.)
Collateral Loans (Exc. AMC Notes)
20 Largest Borrowers
Baht Million
Non-Collateral Loans 38
Collateral Loans 62
As at Mar. 2004
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Assets Quality
Non-Performing Assets Restructured Loans
20 NPL
Baht million
Baht million
NPL by Sector
Manufacturing
Note (1) Unreview financial statement
As at Mar. 2004
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(1)
Non-Performing Assets and General / Specific
Provision
Baht million

Obligation before deduction of collateral value
Obligation after deduction of collateral value
of legal reserve as required by the BOT
Classified Debtors
Required Reserve
Actual Reserve
Active Special Mention Sub-Standard Doubtful Bad
Debt PV loss
320,550 1,688 633 7,575 3,228 -
1 2 20 50 100 -
670 24 67 4,145 2,966 2,605
11, 470 2,605
66,992 1,184 334 6,850 2,966 -
(2)
333,674
78,326
10,477
14,075
Total
Include - Properties Foreclosed 2,341 Baht
Million - Investment Securities 244 Baht
Million - Loans 589 Baht Million -
Others 54 Baht Million
Note (1) Unreview financial statement
(2) 720 Bt. Million from 4,145 Bt. Million is the
excess reserve as required by BOT
As at Mar. 2004
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Sources of Funds
Liabilities Breakdown
Deposit Breakdown
Total Baht 431,508 million
Total Baht 397,510 million
Fixed
Saving
Current
Interbank Money market 4
Note Unreview financial statement
As at Mar. 2004
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Interest Spread
Interest Spread of Yield on Earning Assets Cost
of Funds
Per Annum
(1)
Note (1) Unreview financial statement
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Capital Adequacy (1)
March 2004 Amount
BIS Ratio ()
1. Risk Assets 193,202 2.
Tier I 23,693 12.25 - Paid-up
capital 21,128 10.93 - Legal
reserve 260 0.13 -
R/E after appropriated 2,305
1.19 3. Tier II
2,906 1.50 - Surplus on fixed asset
2,031 1.05
revaluation - Reserve for Active loans
661 0.34 - Surplus on Equity
Securities 214 0.11
revaluation 4. Tier I Tier II
26,599 13.75
(2)
Note (1) After profit appropriation
(2) Unreview financial statement
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Income Statement Summary
(2)
(Baht Million) 2001 2002 2003 1Q2004

• Interest and Dividend Income 11,060 16,501
  17,077 3,896
• Interest Expense 9,074 10,674 8,360 1,505
• Net Interest Income 1,986 5,827 8,717 2,391
• Provision for Loan Losses(1) (2,843) (4,041)
  (3,815) -
• Net Interest Income after Provision (857)
  1,786 4,902 2,391
• Non Interest Income 38 4,137 5,687 1,529
• Non Interest Expense 6,318 5,041 6,958 1,785
• Net Profit before Extra. Items (7,154) 882
  3,631 2,135
• Extra. Items 45,229 - - -
• Net Profit 38,075 882 3,631 2,135

Note (1 ) Includes bad debts and doubtful
accounts and loss on trouble debt restructuring
items (2) Unreview financial statement
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Incomes Structure
Note (1) Unreview financial statement
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Performance Indicators
2002 2003
1Q2004
(1)
1.01 - 25.77 1.83 15.92 12.25 1.50

• EPS (Baht per Share)
• Dividend (Baht per Share)
• ROE ()
• ROA ()
• Book Value (Baht per Share)
• BIS () (2)
• Tier 1
• Tier 2

0.54 0.20 3.29 0.22 16.53 14.46 1.08
1.72 0.75 10.74 0.76 15.45 11.20 1.35
Note (1) Unreview financial statement
(2) BIS (after profit appropriation)
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Off-balance sheet items-Contingencies
(Baht Million)
Note (1) Unreview financial statement
34
Risk Management Organization Structure
President
Risk Committee (9 persons)
ALCO (11 persons)
EVP. Risk Management
Credit Risk Management Dept. 1 (23 persons)
Risk Management Dept. (14 persons)
Credit Review Dept. (39 persons)
Credit Risk Management Dept. 2 (10 persons)
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Risk Management
Market Risk
Credit Risk

• Determine risk control limit
• - Individual limit
• - Overnight limit
• - Intra-day limit
• - Stop loss limit
• Introduce risk management instruments
• - Interest rate sensitivity analysis
• - Repricing Gap Analysis
• - Maturity Gap Analysis
• - Liquidity Gap Analysis
• - Value-at-risk
• - Stress test of trading risk
• Implement RAROC

• Standardize credit evaluation
• - Credit scoring
• Implement decision support instruments
• - Credit rating
• - Industry rating
• Diversify loan portfolio
• - Individual limit
• - Business sector limit
• Centralize loan approval by credit committee and
  sub-committee
• Commented on credit risk of loan applications
  over Baht 50 million before submitting to credit
  approval committee
• Manage loan portfolio in various dimensions

Operational Risk

• Apply Control Self-Assessment (CSA)
• to manage operational risk
• Develop risk management system to
• comply with new capital adequacy
• requirement in the New Basel Capital Accord

36
Siam City Bank Public Company Limited
1. Overview 2. Competitive Strengths 3.
Strategy 4. Performance 5. Industry Outlook
37
Industry Outlook

• Strong economic growth and low interest rates are
  earnings driver
• The financial master plan strengthening the
  stability of financial institutions
• Strong market sentiment
• NPLs are in check

Economic Growth Breakdown
Banking Sector ROA, NPLs, Loans
Baht Billion
Baht Billion
(1)
-0.24
-6.09
-6.01
1.53
0.19
0.62
ROA
Note (1) Forecast
Note Estimated Loan Growth 2004 5 - 7