Bangkok--21 Feb--EXIM Thailand
Mr. Kanit Sukonthaman, President of Export-Import Bank of Thailand (EXIM Thailand), revealed that in 2011 EXIM Thailand posted a net profit of 605 million baht, a 317.7% increase compared to 145 million baht in net profit in the previous year. The surge in profit resulted from rising interest income following a 15.9% increase in loan amount outstanding which accounted for 65,449 million baht as of end-2011. Such loan growth was mainly attributable to an expansion of long-term credit both domestic and overseas. In addition, during 2011 the Bank saw a decline in general operating costs as well as interest expenses due to improved management of funding costs.
Moreover, regarding the Bank’s asset quality and financial strength, the total amount of non-performing loans (NPLs) at the end of 2011 stood at 3,340 million baht, representing 5.10% of total loans, falling from 6.27% as of end-2010. While provision to NPLs ratio increased from 68.8% in 2010 to 89.9% in 2011.
EXIM Thailand’s President said that in 2011 EXIM Thailand approved credit lines in the total amount of 41,331 million baht or 120.15% of the entire year’s target of 34,400 million baht. Of such total, the Bank extended 36,855 million baht in loans, comprising financing facilities to develop and enhance production capability of exporters, importers and investors in Thailand worth 29,049 million baht and another 7,806 million baht to support Thai investments abroad. With respect to international trade promotion, in 2011 the Bank’s Pre-shipment Financing (PSF) Facility reached 174,783 million baht in business turnover.
In addition, in 2011 EXIM Thailand approved 4,477 million baht in export credit insurance to help exporters mitigate non-payment risks from foreign buyers as a result of global economic uncertainties while boosting exporters’ confidence in expanding businesses in both existing and new markets. Meanwhile, export turnover covered by EXIM Thailand’s credit insurance totaled 134,692 million baht, a 23.92% increase over the year 2010 while insurance obligations accounted for 35,916 million baht, a 7.61% increase from the end of 2010.
With regard to the Bank’s adoption of the government’s policy to support Small and Medium Enterprise (SME) exporters in 2011, EXIM Thailand approved 13,498 million baht in loans for SME exporters, constituting 36.63% of the Bank’s total loan approval amount of 36,855 million baht. Total business turnover generated from SME clients represents 55% of the Bank’s total turnover with the number of SME customers accounting for 80% of the Bank’s entire clients base.
Mr. Kanit also added that for 2012, EXIM Thailand has set out a loan expansion target of 5% of the total loans outstanding in 2011 while expecting to maintain the same profit level. In addition, more emphasis will be placed on SME business promotion through loan extension, export credit insurance and training programs. These facilities aim to help incubate new SME exporters as well as bolstering existing SME exporters’ competitive edge in the international trade arena.