Exim Bank nets Bt779 million in first half

At the end of June, its non-performing loans stood at Bt4.89 billion, or 6.98 per cent of the loan portfolio. Provisions for doubtful accounts totalled Bt5.21 billion, Bt3.02 million of which was set aside to comply with the Bank of Thailand’s regulations, representing 172.4 per cent of the central bank’s requirement for loan-loss provisions.

Acting Exim Bank president Suthanai Prasertsan said yesterday that its core businesses were financing and insurance. During the first half, turnover from financing activities amounted to Bt69.41 billion. 

Outstanding loans accounted for Bt70.11 billion while new loan disbursement so far in 2015 totalled Bt12.27 billion. Turnover under export credit insurance and investment insurance accounted for Bt35.62 billion, of which Bt4.38 billion came from its business with small and medium-sized enterprises, or 12.3 per cent of the overall insured amount. Outstanding insurance accounted for Bt30.53 billion at the end of June.

Giving priority to promotion of SME exporters, Exim Bank says it has fostered cooperation with public and private agencies, resulting in an expansion of the bank’s SME client base to 80 per cent of its customer portfolio. New SME loan approvals amounted to Bt14.22 billion, with aggregate SME loan approvals amounting to Bt59.93 billion and outstanding loans to SME exporters worth Bt20.82 billion.

With respect to Exim Bank’s role in supporting the government’s strategic plans and policies, including renewable-energy development, telecommunications-related infrastructure development, and merchant marine and logistics financing, at the end of the first half, the bank had approved Bt3.59 billion of new term loans for national development projects with aggregate loan approvals of Bt20.40 billion and outstanding loans of Bt12.42 billion.

In sync with Exim Bank’s vision to “be a bank that paves the way for new opportunities for Thai businesses in the global arena, particularly in the Asean Economic Community”, the bank approved Bt83.39 billion in AEC intra-regional trade and investment financing facilities. 

New loan approvals accounted for Bt11.90 billion while outstanding loans at the end of the first half were Bt38.43 billion. Risk-mitigation facilities to promote investment in the AEC expanded consistently, reaching Bt24.81 billion. In this half, the bank will continue to focus on offering full-fledged financial support to exporters, export-related businesses, investors and particularly small businesses wishing to commence or expand their export businesses. 

New products to promote SME competitiveness include SMEs Start-up Credit to support new small and medium-sized exporters already holding purchase orders but lacking working capital by providing them with funds for goods preparation during the pre- and post-shipment period. 

SMEs R&D and Innovation Credit promotes SMEs’ research and development for product or service improvement and innovation leading to further expansion while adding more value to exports, especially those projects in cooperation with public and private agencies. 

Other products to provide integrated services to SME exporters are SMEs Export Delight, SMEs Border Trade, SMEs Relocation & Expansion, Financing Facility for Special Economic Development Zones and Buyer’s Plus Supplier’s Credit, which have been introduced since the beginning of this year.