Bangkok--20 Jul--Bank of Ayudhya BAY strengthens loan provisioning to prepare for the Bank’s next phase of growth Bank of Ayudhya Public Company Limited announced in a press conference today it achieved key milestones against its 2007 plan to build and strengthen the bank’s foundations in preparation for the next phase of its growth, including an asset quality review. The bank posted a 3.9 billion baht profit before provision and tax for the first half 2007. Going beyond IAS39 full compliance requirements, the Bank also set aside 11.5 billion baht in provisions, posting a net loss of 7.6 billion baht. Mr. Tan Kong Khoon President & CEO of Bank of Ayudhya, said, “This year is about strengthening the foundation for growth, and this includes tackling NPLs and strengthening our balance sheet to put us on a firm footing for sustainable growth. We decided to set aside provisions in advance, bringing us in full compliance with IAS39. Other foundation-building efforts include investments in IT systems, staff training, streamlining working processes, and enhancing efficiency and productivity.” Mr. Tan added that to date, the bank is pleased with the progress on upgrading the fundamentals. These efforts will support dynamic and sustainable growth, of consumer banking in particular, in the years ahead. Even as the foundation setting program is being implemented, the Bank achieved a number of critical milestones in the second quarter. These include the launch of several consumer banking initiatives such as the launch of the ‘cardless ATM’ remittance services, the ‘Krungsri Personal Loan’, and auto hire purchase through the bank’s subsidiary, Ayudhya Capital Lease Co. Ltd. As of June 30 2007, the bank recorded 645 billion baht in total assets, 422 billion baht in loans and 527 billion baht in deposits. As of July 2, 2007 following GE’s additional investment and conversion of warrants by other investors, the bank has a strong capital base with BIS ratio of 19.2% and tier 1 capital of 14.6%. Mr. Tan concluded “We will continue to reach for each ambitious milestone we set for ourselves. I am confident about our ability to execute on the targets we have set, and believe we can reach our stated long-term goal to become the most admired bank in Thailand.’’ GE Money also increased its shareholding in the Bank to 31% on a fully diluted basis, underscoring its commitment and confidence in the Bank’s plans and growth opportunities in Thailand.About Bank of Ayudhya Public Company Limited Bank of Ayudhya Public Company Limited, established on January 27, 1945, is the sixth largest commercial bank in terms of total assets. BAY provides a full range of banking services to both its commercial and individual customers through 560 branches nationwide. On January 2007, BAY and GE Money, a premiere global consumer financial services firm, have successfully become strategic partners when GE Money took a 25.4% equity stake (fully diluted) in the Bank. On July 2, 2007 GE Money increased its stake to 31% reflecting its confidence and commitment in Bank of Ayudhya. Plans are underway to leverage the synergies of both BAY and GE Money in helping to achieve BAY’s vision to become a top universal bank in Thailand. For media information please contact: Mrs. Yaowalak Poolthong Head of Corporate Communications and IR Tel: 02 296 3729 Fax: 02 683 1473 Email: [email protected]