Bangkok Bank’s results in 2007 provide clear evidence of the bank’s progress despite weaker economic conditions. The bank achieved a sound result with net profit of Baht 19.1 billion ahead of last year’s result of Baht 16.9 billion.

Earnings per share increased from Baht 8.83 in 2006 to Baht 10.01 and shareholders’ equity rose by 12.0 percent to Baht 164.4 billion. Overall lending growth of 8.0 percent exceeded Thailand’s GDP growth rate of 4.8 percent. In a challenging economic environment affected by political concerns and slowing export growth, the bank was able to continue to grow its market share.

The bank’s revenue base continued to diversify, with non-interest income increasing by 6.6 percent.

Bangkok Bank is well positioned to identify growth opportunities in 2008, despite ongoing challenges in the domestic political situation and the ever changing global economy. Bangkok Bank stands ready to capitalize on corporate sector growth as government infrastructure projects come on stream and private sector investment recovers. We also see growth potential in the higher-yielding SME and consumer banking markets through new products that meet the needs of existing and new customers. We are expanding our retail and self-service networks, and systematically improving our core processes to free up staff to spend more time with their customers.

We are continuing to expand our regional network to capitalize on the remarkable transformation of China’s economy and the increasing integration of trade and investment within the region. In October 2007, Bangkok Bank opened a new branch in Shenzhen and at year-end applied to the Chinese authorities to become locally incorporated.

Across the group, we are continuing to integrate our services, building upon synergies between operational units to provide value for our customers and increase our fee income. The distribution of investment products from subsidiaries Bualuang Securities and BBL Asset Management, and associates Bangkok Insurance and Bangkok Life Assurance through the bank’s branch network is also increasing investment choices and opportunities for our consumer banking customers.

This year we have retained our strong focus on risk management, which was strengthened through the introduction of more robust risk rating systems and processes prior to the introduction of Basel II standards. Asset quality improved with non-performing loans at the end of 2007 declining by Baht 7.4 billion to Baht 81.7 billion, or 7.9 percent of total loans, compared to 9.2 percent of loans at the end of 2006. The bank has no direct exposure to the US subprime credit markets and has a total exposure to Collateralized Debt Obligations of Baht 1.683 billion, representing approximately 1 percent of shareholders’ equity, for which the bank realized impairment and revaluation charges of Baht 1.067 billion in 2007.

Bangkok Bank remains well capitalized, with the capital adequacy ratio and Tier 1 capital ratio to risk assets at approximately 14.5 percent and 12.0 percent respectively – well above the minimum level required by the Bank of Thailand through the introduction of Basel II in the beginning of 2008.

As we look to the future, Bangkok Bank’s growth is linked to the prosperity of Thailand and the region as we continue to build upon the nation’s strongest banking franchise and to expand our regional banking presence. In 2008, we expect the Thai economy to continue to grow at a similar rate to 2007, with increased investment and demand for finance. As Thailand’s market leader in business and corporate banking, Bangkok Bank will be actively pursuing the opportunities that this presents.

On behalf of the Board, I am grateful for the support of our customers, shareholders, suppliers, and business partners and I would like to thank our staff and executives for their commitment to achieving our goals.

We look forward to continuing to build value for our customers, our shareholders, our staff and the people of Thailand.