Bangkok--21 Apr--Bank of Ayudhya A 7% growth from 4Q/07 Bank of Ayudhya Public Company Limited announced its performance for the first quarter of the year compared favorably with its plan. For the first quarter of 2008, the bank and its subsidiaries recorded an operating profit before provisioning for doubtful accounts of Baht 2.6 billion, a 67% increase as compared to 4Q/07. After setting aside Baht 1.6 billion in provisions, the bank recorded a net profit of Baht 1.0 billion, a 7% growth as compared to last quarter. The bank achieved a 67% QoQ improved operating profit of 2.6 billion in 1Q/08 after full compliance with the new BOT regulation requiring the booking of a mark-to-market loss in its held-to-maturity CDO investment worth USD 85 million by an additional 26% or Baht 690 million. Major drivers for the improvement are a 12% increase in net interest income, a 4% increase in non-interest income and a 7% reduction in non-interest expenses. A loan loss provisioning of Baht 1.6 billion was set aside in this quarter as compared to Baht 0.5 billion posted in 4Q/07. The level of provisioning reflects the bank’s plan to continue the acceleration of NPL resolution and a significant shift in the composition of the Bank’s loan portfolio with the retail lending proportion increasing from 22% at the end of 2007 to 34% at end of 1Q/08 resulting primarily from the completion of the GECAL acquisition in mid-February 2008. Following the completion of the GECAL acquisition, as of March 31, 2008, the bank recorded Baht 725.0 billion baht in total assets representing an increase of Baht 72.6 billion or 11% as compared to the end of 2007, Baht 538.5 billion in loans representing an increase of Baht 88.4 billion or 20%, and Baht 518.5 billion in deposits representing an increase of Baht 18.9 billion or 4%. The bank maintained a strong capital base with a BIS ratio of 17.8% and tier 1 capital of 13.5%. Mr. Tan Kong Khoon, President & CEO of Bank of Ayudhya, said, “We are pleased with our 1Q/08 performance, both financial and non-financial. We have completed the GECAL acquisition, our first inorganic growth activity, and it started to yield positive results to the Bank’s performance as planned. In terms of organic growth, the Bank also recorded a favorable loan growth of more than Baht 10.7 billion which is in line with our target. In compliance with new BOT requirements, we continue to book a mark-to-market valuation for our CDO investment of which none are directly invested in sub-prime mortgages. We believe this negative impact will be temporary and we should be able to write back the loss marked to date before the maturity date in 2012. Taking into account a MTM loss on CDOs of Baht 690 million, we still report a strong improvement from last quarter.” Mr. Tan added that in addition to the business progress mentioned above, in 1Q/08 the bank also progressed its plan to improve asset quality by obtaining approval from shareholders to sell a tranche of NPLs worth Baht 6.2 billion which is expected to be completed within 2Q/08. In addition, the bank is now in the process of preparing for additional sales of NPLs worth Baht 10.0 billion within this year. “We are pleased with our performance to date as it indicates that we are on track against plan. For consumers, they will see more product launches and new services that will provide greater convenience for their banking needs.” Mr. Tan concluded.About Bank of Ayudhya Public Company Limited Bank of Ayudhya Public Company Limited (Symbol in SET: BAY), established on January 27, 1945, is the fifth largest commercial bank in terms of total assets in Thailand. BAY provides a full range of banking services to both its commercial and individual customers through 568 branches nationwide. On January 3, 2007, BAY and GE Money, a premier global consumer financial services firm, have successfully become strategic partners when GE Money took a 25.4% equity stake (fully diluted) in the Bank and subsequently increased its stake to 33% on July 2,2007, and 35% on September 18, 2007. Plans are underway to leverage the synergies of both BAY and GE Money in helping to achieve BAY’s vision to become the most admired universal bank in Thailand. To learn more about us, please visit our web site at www.krungsri.com. For media inquiries, please contact: Mrs. Yaowalak Poolthong Head of Corporate Communications and IR Tel: 02 296 3729, 02 296 2443 Fax: 02 683 1473 Email: [email protected]