Exim bank sees net profit rise 9% in first quarter

For the rest of the year, the bank will continue to strengthen small and medium-sized exporters for the upcoming Asean Economic Community (AEC).
President Kanit Sukonthaman yesterday attributed the rise in earnings to higher outstanding loans, wider interest margin and lower operating costs.
Net interest income soared by 32 per cent on a 7-per-cent increase in loans and bigger interest margin.
Operating costs dropped by 5 per cent from the year before.
Loans rose by 3 per cent to Bt64.37 billion, driven by long-term loans for domestic projects, especially term loans for expansion and merchant marine |financing.
Non-performing loans improved to 5.24 per cent, or Bt3.37 billion, of total loans from 5.54 per cent as of the end of March 2011.
Loan approvals increased by Bt5.78 billion, of which Bt1.5 billion was for working capital and Bt4.28 billion for project investments and national development.
About 30 per cent of approved loans, or Bt1.74 billion, was for small and medium-sized exporters, and Bt586 million was for the Bt3.67-billion Financial Assistance Scheme for Maritime Business.
Exim Bank will concentrate on providing non-financial assistance to small and medium-sized enterprises including training to equip them with basic knowledge on exporting and to prepare entrepreneurs for the AEC, which will take shape in 2015.
In the first quarter, the bank financed exports worth Bt39.57 billion. Exports covered by the bank’s credit insurance surged 35 per cent to Bt32.41 billion, while insurance obligations jumped to Bt46.14 billion.