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Published on December 1, 2007

In a statement, UOBT said the capital reduction and capital increase were approved separately at a shareholders' meeting.

UOBT said the capital reduction was aimed at cutting part of its retained loss. A bank official said that after the cut, only a small amount of retained loss would remain.

The capital increase will raise the bank's capital will from Bt22.6 billion to Bt24.8 billion.

Then the bank will be strengthened by new capital, allowing it to its expand business, the bank said.

President and CEO Kim Choong Wong said in the statement that once the retail loss was wiped out, the bank would be able to pay dividends to shareholders sooner.

He expects UOBT to grow 5-10 per cent per annum from now on, focusing on small and medium-sized enterprises and retail customers. In addition, he said the bank was preparing to follow the new Basel II international banking standard next year.

"We firmly believe in Thailand's economic future. With this capital restructuring, UOB Thai's competitive position is definitely strengthened," Wong said.

The bank's major shareholder is United Overseas Bank.

UOBT took over Bank of Asia several years ago and is undergoing an integration process.

The Nation