Bangkok--17 Jan--EXIM Thailand
Mr. Kanit Sukonthaman, President of Export-Import Bank of Thailand (EXIM Thailand), announcing EXIM Thailand’s operating results for 2012, reported the Bank’s net profit of 1.1 billion baht, a 81.82 percent growth over last year’s net profit of 605 million baht. The rise in profit was attributed mainly to an increase in interest income following the expansion of medium- to long-term loans for investment projects conducive to national development and a reduction in operating and interest expenses resulting from better cost management.
The Bank also saw steady improvements in its asset quality and increased financial stability with total non-performing loans (NPLs) amounting to 2,812 million baht, a 15.81 percent decline from 2011 year-end. The NPLs to loans outstanding ratio fell from 5.10 percent to 4.22 percent from the previous year. Bad debts provision ratio to NPLs stood at 146.75 percent, an increase by 56.82 percent from end-2011, which comprised special provision of 1,937 million baht over and above the amount required by the International Accounting Standards (IAS39) reflecting increased financial strengths and risk management capability.
In addition to achieving its financial stability targets, EXIM Thailand has steadfastly pursued the government policy and translated its development banking missions into three key areas, namely, 1) promotion of Thailand’s international trade 2) support of Thai investment projects, both at home and abroad, contributing to national development and 3) protection of exporters’ risks through export credit insurance.
With regard to international trade promotion, EXIM Thailand approved a total of 11,732 million baht in trade finance at end-2012. Of this total, 4,779 million baht was extended to SME exporters. Business turnover of export-import financing facilities accounted for 142,956 million baht with 15,187 million baht in short-term working capital loans outstanding, down by 2,513 million baht from the previous year. The drop in short-term loan outstanding resulted from 1) a shift in portfolio emphasis to SME exporters which maintain a smaller size of credit line per customer relative to large-scaled exporters, 2) a slowdown in Thailand’s export to major markets such as the US and EU and 3) commercial banks’ more aggressive promotional campaigns to win SME clients giving SMEs better access to commercial banks’ funding. Under such circumstances, EXIM Thailand has resolved to concentrate more on exporters and importers unable to secure commercial banks’ loans while not competing with commercial banks in the areas already well-served by them. The Bank also devised and executed special assistance measures as necessary to enhance customers’ liquidity including a reduction in interest rates for delayed payment and export bill negotiation.
In strengthening SMEs’ potentials, EXIM Thailand organized a year-round series of seminars and training programs to provide basic essential knowledge for start-up SMEs in different provinces such as Chiang Mai, Chiang Rai, Khon Kaen, Chonburi and Songkhla as well as export risk management workshops at EXIM Thailand’s headquarters. Over 1,500 participants nationwide benefited from such training programs.
On investment promotion and national development, EXIM Thailand approved 10,457 million baht in new loans to support energy, alternative energy, logistics, infrastructure and public utilities development projects as well as production capacity expansion. Of this total, the Bank provided 5,170 million baht in merchant marine finance under the Ministry of Finance’s Financial Assistance for Maritime Business Promotion Scheme which aims to foster long-term development of national shipping fleet. In promoting outbound foreign direct investments, the Bank approved 6,988 million baht mostly to support infrastructure development in the CLMV countries (Cambodia, Laos, Myanmar, and Vietnam). As at year-end 2012, therefore, the total loan approval amount for medium- to long-term loans accounted for 17,445 million baht, reaching 51,489 million baht in loans outstanding, representing an increase of 3,740 million baht from the previous year.
On the export credit insurance front, EXIM Thailand approved 3,572 million baht in export credit insurance to help protect exporters from non-payment risks by buyers facing current global economic volatilities while enhancing their confidence in expanding export transactions in both existing and new markets. In 2012, the Bank’s export credit insurance turnover reached 135,073 million baht, growing 0.28 percent compared to last year, with insurance outstanding totaling 34,024 million baht.
Mr. Kanit added that in 2013 EXIM Thailand has set a growth target of 5 percent in loan outstanding while maintaining its profit level achieved in 2013. In regard to its business policy, the Bank will continue to earnestly serve as a development bank that helps narrow or close financing gaps left unfulfilled by commercial banks while emphasizing cooperation between the public and private sectors in providing various forms of support to SMEs including financial and export credit insurance facilities as well as capability building for SMEs in full preparation for the advent of the ASEAN Economic Community (AEC) in 2015.
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