Bangkok--21 Apr--Siam Commercial Bank The Siam Commercial Bank, the oldest Thai bank, announced Baht 6.7 billion in consolidated net profits in the first quarter — an 83.5% year-on-year increase — a record high for the Bank. This remarkable increase in profitability was driven by dramatic growth in the contributions from its universal banking model, continued productivity increases culminating in increased cost efficiencies, and a one-time investment gain. Further, NPLs resolution was ahead of schedule, reflecting significant qualitative improvement in the overall lending portfolio. Meanwhile, although loan growth was slightly less than expected, the net margins from the lending business remained attractive and stable. Commenting on the dramatic improvement reflected in the quarterly results, Dr. Vichit Surapongchai, Chairman of the Executive Committee, noted that “the results attest to the inherent sustainability of the new universal banking business model that has been implemented over several years of transformational change.” He added that “we are very pleased that we have been able to bring about this dramatic improvement in our results, in what can best be described as a very competitive and difficult time for the financial services industry around the world.” The core driver of the quarterly results was the solid improvements in the returns from implementing the universal banking model. This is best reflected in the impressive growth in fee income, particularly from fees related to its bancassurance and mutual fund sale. Likewise, the contribution from the Leasing and Asset Management subsidiaries increased by an order of magnitude, reflecting recent market share gains in both these business areas. At the same time, the bank was able to contain its non-interest expenses to around the same level as the prior year, attesting to the success of its strategic thrust to enhance productivity and reduce expenses announced at the end oflast year. The quarterly profits were boosted by a one-time investment gain from the sale of the shares in a foreign entity. On NPLs, the Bank was able to significantly reduce NPLs from 7.9% at the end of Q1/2007 to 5.2% at the current quarter. This reduction reflects both the effective work-out practices at the bank and the strong improvement in its credit risk related policies. Finally, the lending business growth was relatively modest at 12.1%. However, the net lending margins remained stable, although much better compared to the same period last year. Commenting on these spectacular quarterly results the President, Khun Kannikar Chalitaporn, stated that “from the regular surveys conducted by the leading pollster, Gallup, we are already the best bank in Thailand in terms of customer loyalty and employee engagement. Through delivering this type of performance we are striving to be best bank in terms of shareholder value”. Also, she added “consistent with the Bank’s vision, we will continue support for the CSR programs and related activities to attain broader community engagement.” The Siam Commercial Bank PCL is the leading universal bank in Thailand. It was established by Royal Charter in 1906 as the oldest Thai bank and, as at March 31, 2008, had the highest market capitalization among the Thai Financial Institutions (Baht 308 billion). It has the largest branch (885), exchange booth (141) and ATM (5,063) network in the country as mirrors its dominant position in the retail financial services marketplace. It has a diverse range of Corporate, SME, Private and Retail customers nationwide and has the third highest asset size amongst the financial institutions in Thailand (Baht 1,196.3 billion). Further information is available on its web site www.scb.co.th . For more information please contact: Corporate Communications Division Siam Commercial Bank PCL Tel : 02-544-2555, 02-544-4502 Email : [email protected]