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KASIKORNBANK Financial Overview

K EXCELLENCE Summary on Government Stimulus Plans: Economic Policies ■ Corporate income tax cut Enhancing Competitiveness for SMEs ■Bt300 daily minimum wage ■Bt15,000 monthly salary or equivalent income for civil servants with undergraduate degrees ■Rice pledging policy ■3-Year Performing Debt Moratorium ■Monthly welfare allowance for citizens over age 60 ■Fund for Entrepreneurship Expired Measures 'First Home' program (Expired measure) ■'First Car' tax incentives (Expired measure) ■GHB home loans with 0% interest for 3 years (Expired measure) Source: KResearch, information as of May 15, 2013 Key Points ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK ■Reduction in corporate income tax from 30% to 23% in 2012 and 20% in 2013 and 2014 ■Financial assistance through cooperation between SME Bank, Thai Credit Guarantee Corporation (TCG), and the Social Security Fund, as well as tax breaks ■Daily minimum wage rising to Bt300 until December 2015 ■Salaries (wages plus benefits) raised to at least Bt15,000 per month Using the Bank for Agriculture and Agricultural Co-operatives (BAAC) as an arm of the government to support the rice pledging program, with prices set at Bt15,000 a tonne for white rice and Bt20,000 a tonne for fragrant or 'Hom Mali' rice 3-year debt moratorium for small-scale farmers and low income earners with outstanding debt not to exceed Bt500,000 per person with the interest rate reduced by 3% per year ■Monthly welfare allowance of Bt600-1,000 paid to citizens between ages 60-90 ■Provide startup capital/soft loans for entrepreneurs who want to open businesses ■10% maximum personal income tax deduction (maximum Bt100,000 deduction per year) for first-time buyers of new houses or condominiums valued below Bt5mn ■Deduction will be spread out over five years ■Rebate of the excise tax (capped at Bt100,000) on small passenger cars (engine size less than or equal to 1,500cc) and pickup trucks worth up to Bt1mn ■Government Housing Bank (GHB) will provide up to Bt1mn in housing loans for first-time home buyers with 0% interest for the first three years บริการทุกระดับประทับใจ 95 K EXCELLENCE ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Summary of Four Financial Emergency Decrees Decree Name ■Emergency decree authorizing government borrowing for strategic investment plans covering water resource management ■Emergency decree providing assistance loans to flood-hit SMEs and individuals ■Emergency decree. establishing flood-related insurance fund ■Emergency decree improving management of the Financial Institutions Development Fund (FIDF) debt Key Points ■Establishing water management system; flood prevention program to regain investor confidence Providing soft-loans with fixed interest rate of no more than 3% for flood-affected parties ■Establishing a flood insurance scheme, with favorable insurance premiums in light of partial government support ■Set a clear responsibility to manage debts, particularly yearly interest rate burdens, by introducing additional sources of funds from financial institution contributions Implementation Process Approved (by Cabinet): Jan 10, 2012 Effective date: Jan 27, 2012 ■Approved (by Cabinet): Jan 10, 2012 ■Effective date: Jan 27, 2012 ■ Approved (by Cabinet): Jan 10, 2012 ■Effective date: Jan 27, 2012 ■Approved (by Cabinet): Jan 10, 2012 Effective date: Jan 27, 2012 Possible Impacts/ Expected Budget ■■Bt310bn in government borrowing will have taken place by June 30, 2013 ■Funding wholly comes from government borrowing ■Boosting infrastructure investment ■Bt300bn in soft-loans ■Bank of Thailand contributes up to 70% of total amount ■State-owned and commercial banks contribute the remaining amount ■As of September 2012, this measure has provided support to more than 520,000 affected customers nationwide ■■Bt50bn in funds ■Funding comes mainly from government borrowing ■As of May 7, 2013, a total of 808,119 catastrophe policies have been sold, with reinsurance premiums under the National Catastrophe Insurance Fund reaching Bt75,926mn ■■Until 2011, Thai banks paid 0.40% per year of the daily average deposit amount to the Deposit Protection Agency; since January 27, 2012, the contribution rate has been increased from 0.40% to 0.47%, of which 0.46% is paid to the BOT to manage FIDF debts and 0.01% is paid to the DPA According to news reports, SFIs will also be required to pay 0.47% of their deposits into a country development fund Source: KResearch, information as of May 2013 บริการทุกระดับประทับใจ 96

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