BAM targets 10-per-cent profit this year

Bangkok Commercial Asset Management (BAM) plans to buy non-performing assets and non-performing loans worth Bt58.37 billion, targeting net profit of at least 10 per cent this year.

The company’s president, Sumate Maneewattana, said in an interview with The Nation that Bt51 billion of Bt58.37 billion will be non-performing loans and Bt7.37 billion will be non-performing assets. 

BAM will buy Bt41.90 billion from Thai Asset Management Corp, which will shut down its business this year, and the balance Bt16.47 billion from other financial firms. 

He said the company is targeting net profit of at least 10 per cent in 2012.

“We are aiming to achieve total revenue of Bt13 billion and net profit at least Bt3 billion this year,” he said.

The company recorded net profit of Bt2.68 billion as of the end of November 2011 and hopes to have ended the year with Bt2.8 billion. 

“Our financial result in 2011 was not much affected by the floods in Bangkok and its suburbs. As a result we succeeded in selling non-performing assets while repayment of loans by those in the non-performing category exceeded our estimation in the first nine months of last year,” he said.

Non-performing assets hit by floods were only 300 units, worth Bt400 million. The company will spend the budget of about Bt10 million in renovation this year, he said. 

I About 100 customers were hit by the floods, most of them are non-performing loans customers. 

“We will help our customers by extending the loan payment between three and six months, depending on the customers’ purchasing power to pay,” he said.

The company’s financial results for 2011 will show that it achieved its target, he added.

 

SET listing 

This year, the company plans to be listed on the Stock Exchange of Thailand (SET) after completing in two years – 2010-2011 – restructuring of its business to qualify for listing, Sumate said.

“We are awaiting the Finance Ministry’s approval for our plan,” he said.

The company aims to apply for SET listing in the second half of this year. 

Along with its business plan to be listed, the company’s financial plan is targeting average growth of 10 per cent a year in terms of net profit. The company has continued to maintain its business strategy to help its customers with their rehabilitation plan than to increase the profit margin. 

“Our business strategy is a win-win situation for strong and healthy business growth. Our customers have to survive the debt burden because we are business partners,” he said.

 

Investment plan 

The company has set aside Bt100 million to develop its information technology system in keeping with its business expansion plan this year.

Sumate added that the company also plans to convert its three provincial branches from lease office to a new branch that owns assets. They are the Suphan Buri branch, Chon Buri branch, and Chachoengsao. 

Meanwhile, its Sukhothai branch will be moved to its Phitsanulok branch. 

The move will create more efficiency to do business in covering its customers in the area, he said.

The company also has continued to have its sustainable agriculture project. One rai of land will generate an income of Bt100,000 a year, starting  in 2010. This project, in cooperation with the Thai Chamber of Commerce and the University of Thai Chamber of Commerce, will provide more knowledge to farmers and customers for sustainable agriculture to achieve the target.

“We will have land worth Bt500 million to join this programme this year,” he said.