Bangkok--4 May--EXIM Thailand
Mr. Sataporn Jinachitra, President of Export-Import Bank of Thailand (EXIM Thailand) announced the Bank’s operating results in the first quarter of 2006 which registered a net profit of 103 million baht, compared with 153 million baht in the first quarter of last year. Net interest and dividend income rose by 49 million baht and a correspondent increase of 49 million baht in profit before bad debts and losses on debt restructuring. Nevertheless, in 2006 first quarter, the Bank set aside allowances for bad debts and for losses on debt restructuring in an aggregate amount of 286 million baht, compared with 187 million baht in the same period in 2005.
EXIM Thailand’s total assets as of the end of March 2006 stood at 69,986 million baht, slightly down from 70,499 million baht at year-end 2005. The loans and accrued interest receivables as of March 2006 grew from 60,327 million baht at the end of 2005 to 60,851 million baht. The Bank’s baht-denominated loans increased at a satisfactory rate while the US dollar-denominated loans declined in value due to the baht appreciation against the US dollar, from 41.07 baht at year-end 2005 to 38.84 baht at the end of 2006 first quarter. The Bank’s non-performing loans (NPLs) stood at 6,785 million baht or 11.2% of total loans and accrued interest receivables, up from 6,420 million baht or 10.6% as of end-2005. The capital adequacy ratio at the end of March 2006 was 15.5%.
According to EXIM Thailand President, a relatively high proportion of allowances for bad debts was ascribed to higher NPLs from year-end 2005 to 2006 first quarter. However, the bad debt allowances are expected to ease in the second quarter of this year. In addition, none of the loans extended under the government’s protection prescribed in the Article 23 of Export-Import Bank of Thailand Act has been delinquent.
In the first quarter of 2006, EXIM Thailand successfully forged ahead with a number of export and overseas investment promotion plans including the issuance of standby letters of credit for Thai frozen shrimp exporters as guarantee against the US Customs’ continuous bond requirements, and financial support totaling 2,184 million baht for two ethanol production projects aiming to promote the use of ethanol as alternative energy.
In addition, the Bank is involving in two new lots of Asian bonds. The first lot, to be issued by EXIM Thailand, is a 3.2-billion-baht bond with a 5-year maturity aiming to raise funds for financing development projects in Thailand’s neighboring countries. The bonds which are issued on May 3, 2006, were fully subscribed at the final coupon rate of 5.95%. The other lot of Asian Bond will be issued by government agencies of neighboring countries. The first tranche of such bond will be issued by Electricite de Laos and guaranteed by EXIM Thailand in an amount of about 2.5 billion baht for sale to institutional investors in Thailand. The proceeds for this Laotian tranche will be used to fund electricity projects in Laos.
About Export-Import Bank of Thailand
Export-Import Bank of Thailand (EXIM Thailand) is a specialized financial institution wholly owned by the Royal Thai Government under the Ministry of Finance’s supervision. The Bank was established by the Export-Import Bank of Thailand Act B.E. 2536 (1993) which empowered the Bank to engage in any financial activities customary to commercial bank practices, except for accepting deposit from the general public. The Bank’s objective is to provide financial services to strengthen the competitive edge of Thai exporters and investors abroad while contributing to the earning or saving of foreign exchange.
For further information, please contact Public Relations Division, Office of Top Management
Tel. 0 2271 3700, 0 2278 0047, 0 2617 2111 ext. 1140-6