BAM targets 10% annual profit growth to back SET listing in 2013
Having succeeded in restructuring customer debt of more than Bt45.9 billion from 2009 to 2011, Bangkok Commercial Asset Management Co (BAM) targets annual growth in net profit averaging 10 per cent from now until 2015 to support its business plan to list
The company recorded net profit of Bt2.93 billion in 2011, up 10 per cent from 2010. It targets net profit of Bt3.14 billion this year and Bt6.9 billion by 2015, for average growth of 10 per cent a year, president Sumate Maneewattana told a news conference yesterday.
He added that BAM planned to buy new non-performing loans and non-performing assets worth Bt120.34 billion from Thai Asset Management Corporation (TAMC) and another Bt15 billion worth from commercial banks this year. This will increase its NPL and NPA holdings to Bt408.74 billion by the end of this year.
Currently, BAM has total debts for restructuring worth Bt273.41 billion. Of that figure, Bt237 billion is NPLs of 44,152 customers, and Bt36.39 billion is NPAs of 13,526 customers.
“We have budgeted Bt30 billion to buy new NPAs and NPLs from TAMC and commercial banks in this year. Some will be paid for by cash, and some by issuing bills of exchange or bonds,” he said.
Given its plan for sustainable growth through 2015, BAM believes that it can apply to be a listed company on the SET next year upon Finance Ministry approval.
“We started to study the plan to be a listed company in 2009 … and now our business structure and financial result that already to be listed company when the Finance Ministry approved our plan, which we proposed to the ministry last year,” he said.
If BAM is able to list on the SET, it will not change its business strategy to help customers survive their debt burdens, he said.
Meanwhile, the company has set aside an investment budget of Bt200 million to renovate its NPAs before putting them on the market. This is to increase their value before sale, he said.
