kasikorn bank

Aj.

Ms. Yi-Ju Chen

This report is part of fulfillment of FIN

Market and Institution

Rangsit University, International College

2nd Semester, Academic Year 2011

KBANK

(Kasikorn Bank)

Instructor:

Aj. Ussanee Malisuwan

Prepared by:

ID No. 5108873

This report is part of fulfillment of FIN431 (International Financial

Market and Institution) Course.


Semester, Academic Year 2011

ID No. 5108873

International Financial


Kasikorn Bank

i

Preface

This report is partial fulfillment of FIN431 (International Financial Market and Institution) for 2nd

semester for the academic year 2011. This report is based on the studies of the course.

Editor team hopes that readers from this report can gain some knowledge from reading this

report.

Editor Team

11th December, 2011

Kasikorn Bank

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Table of Contents

Preface Page i

Company Profile Page 1

KASIKORNBANKGROUP Page 5

K-Bank Financial Conglomerate Page 12

Customer Centricity Strategy Page 13

Financial & Operating Highlights Page 14

Reference Page 15

Kasikorn Bank

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Company Profile

Company Background

The KASIKORNBANK Public Company Limited was established on June 8, 1945, with

registered capital of Baht 5 Million and only 21 employees. Its first office is now the Thanon Sua Pa

Main Branch. The Bank showed healthy performance after only six months in operation. As of

December 31, 1945, or at the end of its first accounting period, the Bank recorded total deposits of

Baht 12 Million, assets of Baht 15 Million.

Since its inception, the Bank has grown healthily. As of June 30, 2011, the Bank, with

registered capital of Baht 30,486 Million, had total assets of Baht 1,672,341 Million, total deposits of

Baht 1,202,505 Million, and total loans of Baht 1,167,157 Million. The Bank operates 808 branches

across the country, comprising 284 Bangkok Metropolitan branches and 524 upcountry branches. The

Bank has eight overseas offices, including the Los Angeles International Branch, Hong Kong Branch,

Cayman Islands Branch, Shenzhen Branch and the Representative Offices in Beijing, Shanghai,

Kunming and Tokyo, which greatly facilitate international trade and financial service transactions

between Thailand and our trade partners worldwide

Mission

KASIKORNBANK aims to be a strong Thai financial institution that provides a variety of

financial services of world-class quality responsive to serve customers9 needs by harmoniously

combining technology and human resources so as to achieve optimal benefits to customers,

shareholders, employees and the country.

Core Values

• Customer Centricity

• Group-Wide Teamwork

• Professionalism

• Innovation

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Vision

KASIKORNBANK aims to be the strongest, the most innovative and the most proactive Thai

financial institution in serving customers.

Organizational Chart

Kasikorn Bank

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Kasikorn Bank

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Kasikorn Bank

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KASIKORNBANKGROUP

KASIKORNBANK PUBLIC COMPANY LIMITED

The KASIKORNBANK Public Company Limited was established on June 8, 1945, with registered

capital of Baht 5 Million and only 21 employees. Its first office is now the Thanon Sua Pa Main Branch.

The Bank showed healthy performance after only six months in operation. As of December 31, 1945,

or at the end of its first accounting period, the Bank recorded total deposits of Baht 12 Million, assets

of Baht 15 Million.

Since its inception, the Bank has grown healthily. As of June 30, 2009, the Bank, with registered

capital of Baht 30,486 Million, had total assets of Baht 1,187,142 Million, total deposits of Baht 909,025

Million, and total loans of Baht 881,648 Million. The Bank operates 721 branches across the country,

comprising 245 Bangkok Metropolitan branches and 476 upcountry branches. The Bank has seven

overseas offices, including the Los Angeles International Branch, Hong Kong Branch, Cayman Islands

Branch, Shenzhen Branch and the Representative Offices in Beijing, Shanghai and Kunming, which

greatly facilitate international trade and financial service transactions between Thailand and our trade

partners worldwide.

KASIKORNBANK was the first Thai commercial bank to operate business with a complete

financial solution under the KASIKORNBANKGROUP, which consists of 6 companies including

KASIKORNBANK, KASIKORN FACTORING, KASIKORN ASSET MANAGEMENT, KASIKORN

RESEARCH CENTER, KASIKORN SECURITIES, and KASIKORN LEASING

KASIKORN RESEARCH CENTER Co., Ltd.

The KASIKORN RESEARCH CENTER Co., Ltd. is a subsidiary of the KASIKORNBANKGROUP

(KGroup), registering as a company on December 16, 1994, and beginning operations as a subsidiary

entity on January 1, 1995. It is mainly composed of its Research and Support Services departments,

and its sub-divided into the following operational units:

B Sectoral (Micro-) Economics Research Unit

B Macro-Economics Research Unit

B Money and Banking Research Unit

B Regional Investment Unit

B Foreign Languages Department

B Support Services Department

Kasikorn Bank

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Before KASIKORN RESEARCH CENTER (KResearch) rose to its present status as a subsidiary

company of the Bank, it had its beginnings in 1970s as an academic unit within the Bank itself.

KResearch9s predecessor unit was first tasked with producing academic information for the Bank9s

clients and the general public. It also served as an academic resource for other units within the Bank,

producing a twice-monthly news summary, which included many topics, such as general economic

conditions, industrial outlook, agriculture industry, money and banking, and foreign economies. Also

published were annual reports on specialized economic subjects.

In 1984, its mission was broadened to become the Academic Section, with its academic work

broadening for the benefit of the Bank and the public.

In 1994 the KASIKORNBANK desired to facilitate the performance of the Academic Department

to keep abreast of the current changes in the global economy, business, money and banking and to

give the freedom in conducting research work in various fields, so it decided to separate the Academic

Department from the bank and set it up as the KASIKORN Research Center Co., Ltd. The center

began operating in 1995 with the following objectives:

1. To provide knowledge in economics, business, money and banking for the staff and

customers of the bank and the general public.

2. To set up an accurate, comprehensive and state-of-the-art academic database.

3. To spread the academic reputation of the Center as an affiliate of the KASIKORNBANK.

Research Works

KASIKORN Research Center has disseminated research work to general public on a continuing

basis, covering wide-ranging issues including economic situation domestically and internationally,

industrial and agricultural sectors, international trade, movements in money, stock and foreign

exchange markets as well as business operation of all financial institutions.

The Center produces a wide variety of academic work to general public, such as

B K-Econ Analysis -- a collection of reports on various aspects of the Thai economy, including

macroeconomic and microeconomic analysis, financial market analysis, and analysis of the

international economy by focusing on important current issues.

B K-Business Analysis -- a specialized value added service for KBank customers. It is a

compilation of information and analytical reports on economic conditions, finance, stock markets, trade

and investment, FTAs, the Chinese economy, real estate, energy, the automotive industry, etc. The

content is issued as daily, weekly and monthly reports. (The Bank reserves the right to limit access to

this information only to customers whose qualifications meet the Bank9s conditions.)

Kasikorn Bank

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KASIKORN ASSET MANAGEMENT Co., Ltd.

Kasikorn Asset Management Co.,Ltd. or KAsset, a KASIKORNBANKGROUP Company, was

established as a mutual fund management company in March 1992 licensed under the Finance

Business, Securities Business and Credit Foncier Business Act B.E. 2522(1979). KAsset was granted a

provident fund license in June 1996 and a private fund license in March 1979.

KAsset is an outstanding asset management company that is prompt in the area of service,

research and investment management. Aiming to be the best quality asset management company,

KAsset stands with highly qualified personnel along with latest technology, together with a thorough

knowledge of primary research and analysis of individual companies. KAsset also promotes efficient

teamwork and maintains high standard of integrity and ethic.

B K-Mutual Fund : Kasikorn Asset Management Co., Ltd. has offered the mutual fund

management business with investment policies for all types of securities, including equity fund, general

fixed income fund, balanced fund, flexible portfolio fund etc. Each fund has different levels of returns

and risk tolerance as follows.

B Provident Fund :

KAsset Cs services

B Services as Provident Fund Manager :In case that any agency or organization wishes to

appoint Kasikorn Asset Management Co., Ltd. to be a provident fund manager, we have prepared the

personnel who have experience in area of provident funds especially to provide advice and

recommendations as follows.

B Services Prior to Establishment of the Fund

B To give basic knowledge concerning provident fund and the selection of investment

policy according to the employee's choice to the working team/fund committee.

B To analyze the information of the fund and its members, rate of returns and risks

according to the members' preference for proposing of the fund pattern and investment

policy in accordance with such choice.

B To give advice to the working team/fund committee for consideration of the fund

pattern and suitability of the fund establishment e.g. single fund, pooled fund.

B To give knowledge concerning various types of investment, rates of returns and risks,

and to give advice in connection with the selection of investment policy to the

members of the fund. Thai Farmers Asset Management Co., Ltd. has set up provident

funds for the members to make investment at the members' choice e.g.

- Low-risk fund e.g. the fund which has a policy to invest in money market such as

bank deposits and government bonds.

Kasikorn Bank

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- Fixed-income Fund which has a policy to invest in money market and debt

instruments such as deposits, government bonds, debentures.

- Flexible balance Fund which has a policy to invest in money market and capital

market such as deposits, government bonds, debentures, ordinary shares and unit

trust.

B To give advice on the registration of fund including the preparation of important

documents required for the registration. We would prepare an operating plan which is

suitable to your company.

B To provide explanation and recommendations in connection with the preparation of the

fund regulations which will be in line with the laws and meet the objectives and

requirements of the employer and employees.

B To prepare documents and proceed with the registration of fund with the provident

fund registrar.

B To prepare documents for public relations purpose for your company for use in public

relations with the employees free of charge.

B Services Subsequent to Establishment of Fund

B To manage the fund efficiently and professionally.

B To prepare the fund account.

B To prepare a report on fund management for the fund committee on a monthly basis.

B To prepare a report on the results of the fund's operation for members of a fund in the

type of unitization which would enable the members to know about the rate of their

returns from the management by management company based on the rate of change

of net asset value per unit, for individual members at every 6-month interval.

B To prepare financial statements and audit report for the general meeting on a yearly

basis.

B To prepare cheques for payment to the members or beneficiaries within 30 days from

the date of termination of membership.

B To provide information which is beneficial to the fund committee and fund members.

KAsset 1s Products

2 Funds Managed by the KAsset Company

KAsset company supports the policy of the Ministry of Finance to promote the establishment of

provident funds. A fund may consist of several employers. We provide the fund management services

Kasikorn Bank

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for both single-employer funds and groups of employer funds. The types of provident funds which are

managed by our Company are:

1. Single Fund : a large-sized fund in the nature of one employer per one fund. This fund has

its own regulations and investment policy. This type of fund is suitable for large-sized corporation.

2. Pooled Fund : consists of more than one employer, using the same regulations and

investment policy. Its various reports and membership system will be segregated for the purpose of

record and confidentiality of each employer. This type of fund is suitable for small-sized or medium-

sized corporation, or companies that establish provident fund for the first time. This fund can be joined

by unlimited number of participants.

KASIKORN FACTORING Co., Ltd.

KASIKORN FACTORING Co. Ltd., or CKFactoring9, is one of the five companies in

KASIKORNBANKGROUP (KGroup). It was established in 1990 with a registered capital of THB50

million under the name FThai Farmers Heller Factoring Co., Ltd.G. The name reflected the then joint

investment between KASIKORNBANK (then Thai Farmers Bank) and Heller Financial Inc., located in

Chicago, Illinois, USA, to operate factoring business.

In 1993, the company increased its capital by another THB10 million to expand the business,

and in 1995, more capital was injected again to enhance the capital base to THB160 million, in order to

support steady business growth.

In 1999, KFactoring introduced a new FVendor FinanceG product, which was a part of the Global

Vendor Finance (GVF) of Heller Finance Inc., by cooperating with manufacturers and distributors

worldwide to offer leasing services together with goods distribution.

In January 2000, KFactoring became a member of Factors Chain International, offering

discounted account receivable services (Import-Export Factoring), beginning within Heller9s business

network. By July of the same year, it was offering this service through the EDI (Electronic Data

Interchange) system, which was by that time well known and acceptable to all Thai exporters.

In 2001, GE Capital (USA) merged with Heller Financial Inc., and became the new major

shareholder - with 49 percent equity - in the Company.

In February 2003, KASIKORNBANK PUBLIC CO., LTD. bought all shares held by other

shareholders and changed the company name to KASIKORN FACTORING Co., Ltd., and in December

17, 2004, it changed the company9s Thai name only to IJKLMNOPQRSTJKUVกXKกJYNZ [\]กM^ (transliterated -

CFactoring Kasikornthai9) Co., Ltd., which is the current Thai name.

KASIKORN FACTORING Co., Ltd., is a leader in factoring business and has an important role

in educating other organizations on factoring, particularly on the role of supporting small-to-medium

Kasikorn Bank

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enterprises (SMEs) in various models of factoring services such as those employed by larger

organizations.

KASIKORN FACTORING6s products

B K-Local Factoring : Accounts receivables are sold by Clients to KFactoring on a regular basis.

KFactoring services provided to clients include financing, collection of receivables, accounts receivable

management and reporting

B K-Global Factoring : KFactoring liaises with affiliated import factors from abroad to provide

factoring services to our clients. KFactoring services include financing and collection, credit risk

guarantee, credit verification.

B K-Equipment Finance : KFactoring offers medium term financing services in the form of

equipment finance for both Leasing and Hire Purchase transaction for a purchase of certain

commercial and/or transportation equipment. Our target markets are medium size companies to

multinational companies.

KASIKORN SECURITIES PCL.

KASIKORN Securities is a component of the KASIKORN Bank Group, which is one of the

leading financial service provider conglomerates in the country. The Group's strong and solid business

infrastructure is supported by long years of experience and proven track record and expertise in the

financial sector. This also forms part of the foundation of KASIKORN Securities.

A licensed company, KASIKORN Securities specializes in the provision of a complete range of

professional and excellent financial solutions and services, which includes investment banking,

securities underwriting and securities brokerage. We are a member of the Thailand Depositary Center ,

and of the Stock Exchange of Thailand under broker number 11.

Drawing from the solid foundation and established reputation of the KASIKORN Bank Group,

KASIKORN Securities is capable of providing superior comprehensive investment solutions that are

strongly supported by the range of services and facilities available throughout the Group. As a leading-

edge company, we maintain excellent coordination and teamwork with the KASIKORN Research

Center to ensure the superior quality of our research, in order to enhance our knowledge and

expertise, as well as provide clients with important insights and pertinent issues affecting investments.

With linkage to our parent bank, KASIKORN Securities also receives such wealth of information as

macro economic issues, currency fluctuations and other market trends that will be vital in providing

financial advice to our clients.

Kasikorn Bank

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KASIKORN LEASING Co., Ltd.

KASIKORN LEASING Co., Ltd. (KLeasing) is one of the five subsidiaries of

KASIKORNBANKGROUP, commemced on August 8, 2005, to provide leasing and hire purchase

financing to individuals and business entities. Our products include K-Auto Finance, K-Dealer Floorplan,

K-Financial Lease and K-Car CashBack. The company is wholly owned by KASIKORNBANK.

KASIKORN LEASING6s products:

B K-Auto Finance: K-Auto Finance is a service that will enable you to purchase a new vehicle on

installments and with conditions that meet your needs.

B K-Financial Lease: K-Financial Lease offers auto leasing on all types of commercial vehicles,

such as pickups, trucks, tractors, trailers, etc., to business customers at fixed rental and interest rates

for the entire contract period. This service reduces tax burdens and account management because

payments can be booked as expenses.

B K-Dealer Floorplan: K-Dealer Floorplan is an auto financing service offered to authorized car

dealers of respective brands to facilitate car purchases from manufacturers, import dealers and

distributors. K-Dealer Floorplan9s products offered to auto dealers include financing for passenger cars,

pickups, trucks and vans.

B K-Car CashBack: K-Auto Refinance is an exclusive service for KASIKORNBANKGROUP9s

clients who wish to refinance their vehicles.

Kasikorn Bank

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K-Bank Financial Conglomerate

Synergy of power to create a financial organization with solid foundation and total financial

service solution for customers.

Kasikorn Bank

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Customer Centricity Strategy

KASIKORNBANKGROUP continues to adhere Ccustomer-centric9 strategic policies by outlining

framework of special service characteristics tailored to best fit each of the seven customer segments,

including Multi-Corporate Business, Large Corporate Business, Medium Business, Small and Micro

Business, The Wisdom (which has been renamed from FSignatureG, effective on January 1, 2010, for

improved services and privileges), Middle Income and Mass segments.

B Multi Corporate Business (MB) : Company with Annual Sale > 5,000 MB

B Corporate Business (CB) : Company with Annual Sale > 400 - 5,000 MB

B Small & Medium Enterprises (SMEs) : Individual or Company with business annual sale

>10 - 400 MB

B Micro Business (MC) : Individual or Company with business annual sale 0 - 10 MB with

credit limit 0 - 3 MB

B Wisdom (WI) : Individual with income >100,000 baht per month or deposit balance >=5

MB or hold investment unit >=5 MB

B Middle Income (MI) : Individual with income > 15,000 - 100,000 baht per month

Kasikorn Bank

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Financial & Operating Highlights

Kasikorn Bank

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Reference

• Company Profile

o http://www.kasikornbank.com/EN/AboutUs/CompanyBackground/Pages/CompanyBackgr

ound.aspx

o http://www.thailand-china.com/AboutUs/AboutKASIKORNBANG.aspx

• Company9s 2010 Annual Report

o http://www.kasikornbank.com/EN/Investors/FinanInfoReports/FinancialReportsAnnual/Re

_KBank2010_all_Eng.pdf

kasikorn bank

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