Dear Shareholders,

       The year 2011 marked another period of distinctive success for Krung Thai Bank even when having to encounter challenging factors. Despite the fact that the Thai economy grew merely 0.1 percent due to the massive flooding in history; slackening world economy from European public debt crisis; slowing-down of Japanese economy after the severe earthquake and tsunami; fragile US economic recovery; Chinese economy slowdown and revolutionary movements in the Middle East as well as the changing rules and regulations prescribed by official regulators, the Bank’s operating performance expanded continuously with the record-highest net profit. This is attributed to our efficient risk management, integrated enterprise management, well defined business direction and good corporate governance.

       In the year 2011, we focused on creating convenience to all under the vision of being the Convenience Bank. We have enhanced our business in diverse aspects to give clients and general public the feel of convenience. On product side, we presented products with new innovations and services that met their requirements. We are the first bank to provide the Easy Pass pre-payment card through various channels and offer bill payment service to the Port of Thailand via the internet.  On operation, we enhanced the work procedures of business units rendering services to commercial clients and developed the international trade service enabling us to attain the ISO 27001, the very first bank in Thailand. As for service channels, we further enhanced the electronic bank service to a new form under the name KTB netbank, a new dimension of financial world providing full-ranging services online.  More importantly on human resources, the Bank adjusted the core values for fuller completion with “KTB FIRST” or Krung Thai Number One comprising 5 values and 15 behaviors focusing on being firm, innovative, responsible, service-minded and teamwork, all of which are the work spirit of the staff members leading the Bank towards being the number one bank in the customer’s mind.

       Apart from this, we accentuated our corporate identity to be more distinctive and outstanding through enhancement of the looks of the Head Office buildings, branches nationwide and automatic service machines using sky blue color that is cheery, modern and easy to recognize.  Furthermore, the Bank enhanced communications and marketing strategy for better access to target client segments while broadening client base to younger generation through alliance groups that are leaders in lifestyle entertainment business.  This included advertising campaigns with clear concept of the Bank’s being the long-lasting resort for all customers which they have acknowledged and realized this change in identity.

       The success in the passing year was not only a net profit of Baht 17,027 million outpacing the set target and recorded the highest profit ever made, but the Bank also played a vital role in propelling the national economy through credit expansion to respective economic sectors as well as being leader in extending micro finance service to strengthen the grassroots economy enabling those people to have better access to sources of funds. Moreover, the Bank launched various measures to bail out and remedy the flood-affected clients for a total credit line of over Baht 20 billion while making donation totaling over Baht 30 million. Furthermore, more than 20 CSR projects have been given to the public and the environment stressing projects that create intellectual capital particularly for the Thai youth. In this connection, Krung Thai Business Ethics Initiative (White Seedlings) Project was selected as one of the projects participating in the celebration in honor of His Majesty the King on the Auspicious Occasion of His Majesty the King’s 7th Cycle Birthday Anniversary 5th December 2011.

       We Krung Thai Bank are proud to be recognized and provides continuously by prestigious agencies and institutions, both domestic and abroad, through presentation of various awards to the Bank such as

• The SOE Award as an Honorable Achievement to honor the distinctive state enterprise Board of Directors and Outstanding Enterprise Management Award from the State Enterprise Policy Office, Ministry of Finance
• The Board of the Year 2010/11 Awards from Thai Institute of Directors Association in collaboration with prestigious agencies totaling four awards namely, Board of the Year – Hall of Fame, Board with Consistent Best Practices, Board of the Year for Exemplary Practices and Audit Committee of the Year
• The SET Award of Honor in the category of distinctive corporate governance report from the Stock Exchange of Thailand (SET) in conjunction with the Money & Banking Magazine
• The 2011 AUD STP Excellence Award from PCM Custody & Clearing ANZ New Zealand
• The 2011 eASIA Award in the field of electronic business in private sector from Asia Pacific Council for Trade Facilitation and Electronic Business (AFACT)
• The Thailand ICT Excellence Awards 2010 from Thailand Management Association in collaboration with the prestigious agencies
• The Excellent assessment of Ordinary Annual General Meeting of shareholders deserving role model from the Office of Securities and Exchange Commission

       As for our operation in 2012, we will further focus on customer-centric banking business that provides the customers with maximum satisfaction under our “KTB FIRST” core values to keep the bonded promise given to the clients in offering them convenience and ease. We will integrate all the organs within the organization to cope with risk factors and more intense competition. Besides, we will broaden the customer base to cover more private sector, individuals and institutions. At the same time, we continue to retain the government client base for further growth. We will also boost higher fee income through diverse financial products of the Bank and subsidiaries while expanding the business and increasing role to neighboring countries in preparation for entering the ASEAN Economic Community in 2015.

       On behalf of the Board of Directors, we hereby express our thanks and appreciation to all the valued shareholders, supportive customers and business alliances as well as the Bank executives and staff members for the continued support and trust that enabled the Bank to succeed well through time.  Please be confident that we will conduct banking business by adhering to the principles of good corporate governance coupled with being a vital mechanism for the nation’s economic development with consideration for the society and the environment in order to push forward Krung Thai Bank to achieve sustainable growth as Thailand’s front running bank

.

Dr.Sathit Limpongpan Chairman of the Board of Directors

Mr. Apisak Tantivorawong President