EXIM Thailand Announces 2023 Operating Results with Record High in Loans while Advancing the Role as Green Development Bank to Drive Low Carbon Society and Sustainable Development
Dr. Rak Vorrakitpokatorn, President of Export-Import Bank of Thailand (EXIM Thailand), announced EXIM Thailand's operating results in 2023. As of the end of 2023, EXIM Thailand recorded new loan approvals of 70,628 million baht, of which 10,792 million baht went to SMEs, and total outstanding loans of 175,604 million baht, a 7,273 million baht or 4.32% year-on-year growth which was the highest since the Bank's start of business operation in 1994. Two-thirds of the total outstanding loans were outstanding loans for investment amounting to 120,970 million baht, up by 0.6% from a year earlier. This has highlighted EXIM Thailand's role as the "Green Development Bank" mandated to strengthen Thai economy along with uplifting infrastructure and industrial development of Thailand and Asia-Pacific for sustainable growth with environmental, social, and governance (ESG) concerns taken into account.
With commitment to supporting national development under the ESG principles, as of the end of 2023, EXIM Thailand's loans directed toward eco-friendly businesses surged to 62,278 million baht, representing 35.46% of its total outstanding loans and a year-on-year growth of as high as 33.65%, with 12,644 million baht of which going to green SMEs. The Bank has developed green finance tools with fund raising through issuance of SME Green Bond worth 3,500 million baht and with development of financial products or innovations through Solar D-Carbon Financing and EXIM Green Start schemes to boost green businesses' liquidity with a view to propelling Thailand to achieve the goal of net zero emissions.
Furthermore, EXIM Thailand has synergized with its business alliances widely recognized both at home and overseas in bringing Thai businesses to penetrate trade and investment markets beyond Thailand. As of the end of December 2023, the Bank recorded total outstanding loans of 49,299 million baht for international projects. Classified by principal market, it has consistently supported Thai entrepreneurs in expanding their businesses to the CLMV and new frontiers with promising potential. In 2023, outstanding loans to the CLMV and new frontiers amounted to 40,675 million baht, representing 23.16% of the Bank's total outstanding loans.
In the backdrop of the current global economic uncertainties and tensions in several countries, EXIM Thailand has vigorously strengthened Thai exporters and investors' confidence and immunity against risks with offering of export credit and investment insurance facilities. As of the end of 2023, the Bank's total insurance business turnover amounted to 179,557 million baht, a record year-on-year growth of 6.03%.
EXIM Thailand's ongoing supports for Thai entrepreneurs in terms of both credit and insurance facilities have resulted in the increase in the number of customers to 5,826, of whom 82.49% (22% of all Thai SME exporters) were SMEs as of the end of December 2023. Besides, the Bank has sought to support entrepreneurs on a full-fledged basis by making available entrepreneur incubation, knowledge development, business matching, and financial advisory services. As of the end of 2023, entrepreneurs with potential enhancement by EXIM Thailand was in the accumulated number of over 19,100. This has reflected EXIM Thailand's strong determination to work alongside SMEs aiming to leave no little people and vulnerable individuals behind. Thai entrepreneurs would then be empowered to well compete in global trade of the new era with higher trade standards.
Meanwhile, EXIM Thailand has attached high importance to sustainable financial management. The Bank recorded total NPL amount of 8,157 million baht with NPL ratio of 4.65% as of the end of December 2023, and set aside allowance for expected credit loss of 15,556 million baht, hence NPL coverage ratio of 190.70%, which is a strong financial position. The Bank accordingly posed an operating profit of 3,210 million baht, up by 17.27% year-on-year, and a net profit of 456 million baht as of the end of 2023.
For 2024, EXIM Thailand will keep moving forward with focus on its role as the Green Development Bank. The Bank has planned to develop new financial tools in various areas like issuance of the Blue Bond to support businesses that care for ocean resources and launch of products supporting reduction of greenhouse gas emission scopes 1-2-3 (direct emission from owned assets, indirect emission from energy used, and other indirect emissions from business operation respectively) gearing up toward carbon neutrality by 2030. It will also expand the scope of services to investment banking so that customers would be able to access other funding sources besides loans in order to better respond to their diverse needs. At the same time, operational efficiency will further be boosted across the organization through development of digital technology system, work process streamlining, and reorganization with expertise-based division of marketing department. These initiatives reflect EXIM Thailand's role beyond banking to propel Thai economy toward a balanced and sustainable growth alongside the society and the environment.
"In the face of multiple challenges of the rapidly changing world today, EXIM Thailand will remain steadfast in our beyond banking role to assist Thai entrepreneurs, particularly SMEs, in adapting to and competing on the global front while stimulating export and investment of Thai entrepreneurs. This would help build the business ecosystem conducive to sustainable development, realignment of loan portfolios to go greener, development of digital innovation and economy, and development of Thai industries of the future, as well as national development of Thailand and Asia-Pacific on a sustainable basis," added Dr. Rak.