THURSDAY, March 28, 2024
nationthailand

Cost cuts play big role in GSB returning Bt25 billion profit

Cost cuts play big role in GSB returning Bt25 billion profit

The Government Savings Bank has reported a profit of Bt25 billion last year after providing Bt590 billion in loans during 2021 and reducing cost by Bt12 billion, its director said on Monday.

GSB director Withai Rattanakorn told reporters that the good performance of the state bank had made it one of the top four state enterprises out of 58 state firms that had shared its profits with the government. The GSB contributed Bt16 billion from its profit to the government treasury and kept the rest for carrying out social service missions, the director added.

The bank had assets worth Bt3 trillion as of December 31 2021, which was the highest since it was founded. It has savings worth Bt2.57 trillion and it has granted credits and loans worth Bt2.27 trillion. A total of Bt590 billion worth of loans were approved in 2021, Withai said.

The bank meets the Bank for International Settlements' (BIS) criteria with a ratio of 16.06 per cent, Withai said.

He said the GSB also managed to keep its non-performance loans at a low 2.5 per cent of the overall loans. It has set aside a reserve of Bt93 billion to compensate for loan damage, so the bank has its NPL coverage ratio of 165.09 per cent, which reflects the bank’s strength.

Last year, the GSB reduced its cost by Bt12 billion under its cost reduction programme, which helped push its profit up to Bt25 billion.

Withai said the bank used its profit to help 11.6 million people under 36 programmes to help the low-income earners affected by the Covid-19 situation during the past year.

The director added that the bank was successful in approving loans to 1.5 million small-time borrowers via its MyMo (Digital Lending) app that allowed them to apply for loans without going to a GSB branch.

The bank also granted Bt12 billion more loans to low-income earners who used their motorcycles or vehicles as collaterals and since the loans had low-interest rate, the interest in the loan market also dropped.

As part of its social mission in 2022, he said the GSB would continue to play the role of a bank for society by granting soft loans to help people who had lost their jobs or were laid-off because of the Covid-19 situation rebuild their careers. The bank would also help people under nonbanking debts to receive loans with cheaper and fair interest rates.

Withai said the GSB will also enhance its MyMo app with alternative data analytics capability and will encourage people to save more for their retirement as the country is entering an aged society.

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