Bangkok--21 Jan--Bank of Ayudhya Bank of Ayudhya Public Company Limited (BAY) today announced that it achieved its 2007 plan strengthening the balance sheet and foundation in order to accommodate future business direction and growth from 2008 onwards. The bank starts 2008 with closure on the GECAL acquisition by January. It revealed its 2008 business plan set to grow all business segments. Net loan growth is targeted for 8.8% or THB 39 billion this year. In 2007, following the investment of a strategic partner, GE Money, which now holds 35% stake, BAY had announced its 2007 plan to invest its resources in strengthening the foundation. The bank aimed to have the infrastructure that well accommodates its future plan for business expansions. The Bank expects rapid growth in consumer banking, a new challenge of the Bank. This is alongside continued progress in corporate banking and financial services to SME’s, areas in which the Bank already has expertise. BAY today announced that it completed strengthening its foundation in 2007 and is ready to grow the Bank in 2008. For 4Q2007 performance, although the Bank booked a THB 0.64 billion mark-to-market loss for its CDO and structured notes investment to comply with the new regulation of the BOT ahead of the time required, the Bank was able to book an operating profit (before provision and tax) of THB 1.55 billion. After setting aside THB 0.54 billion in provision in subsidiaries, the Bank recorded a net profit of THB 0.97 billion, a significant improvement when compared to a net loss of THB 3.7 billion posted in the same period last year. For the 2007 performance, on a consolidated basis, the Bank recorded an operating profit (before loan loss provision and tax) of THB 8.50 billion. After setting aside a sizable loan loss provision and tax of THB 12.36 billion and THB 0.12 billion respectively, the Bank posted a net loss of THB 3.99 billion. The huge provision provided, however, has strengthened the balance sheet of the Bank and made the Bank in full compliance with the IAS 39. Mr. Tan Kong Khoon, President & CEO, Bank of Ayudhya PCL, said “In 2007, BAY focused on strengthening the foundation of the Bank to accommodate future growth. While most resources were utilized in such activities and extra expenses were incurred, we did record a favorable operating profit before provision and tax of THB 8.50 billion. The net loss posted for the year was primarily due to a one-time THB 11.5 billion loan loss provision for the bank.” He further added, “A slight slow down in organic growth can only be expected due to the focus being placed on integration activities. To make up for any shortfall in volume, we successfully prepared the bank to benefit from inorganic growth such as our purchase of GECAL to be closed by end January 2008.” In 2008, BAY targets to increase a net loan growth of THB 39 billion (bank only), representing 8.8% growth of the bank loan portfolio. The target is broken down into growth in corporate lending of THB 11 billion, THB 12 billion for SME and THB 16 billion for retail lending. Fees from service is targeted for a 26% growth. “We are confident that the strong foundation that we built in 2007 will enable us to achieve our business objectives set for 2008,” Mr. Tan Kong Khoon added. As of 31 December 2007, on a consolidated basis, the Bank had THB 652.4 billion in total assets, THB 450.1 billion in loans and THB 499.6 billion in deposits. BIS Ratio stood at 19.95% with Tier 1 of 15.37%.