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Published on December 13, 2007

As a result, the bank said it expects to achieve its net-profit goal of Bt480 million for 2007.

President Apichai Boontherawara said SAM offered the highest price for the bank's NPL accounts. "The sales of the NPL portfolio resulted in a dramatic decrease in the bank's NPLs from 15.93 per cent to 4.50 per cent of its total loans and accrued interest receivables, which is very satisfactory compared with the NPL reduction target of 10 per cent set for this year," said Apichai.

In the first 10 months of 2007, Exim Bank restructured its NPLs in the amount of Bt724 million. Due to the bank's NPL restructuring and disposal process, the bank is expected to reach its net profit target of Bt480 million in 2007. The 10-month net profit alone stood at Bt382 million.

Nampung Wongsmith, president of SAM, said her company was able to reach the target of financial institutions' NPL portfolio purchase of Bt20 billion.  SAM's successful bids included those offered by Siam Commercial Bank, Chatuchak Assets Management, Thanapat Credit Foncier, TMB Bank and Exim Bank, with an outstanding principal balance of approximately Bt19.3 billion. SAM also plans to engage in the NPL auction of another two financial institutions, Siam City Bank and Bank of Ayudhya.

So far, 98 per cent of the target set for distressed-asset restructuring had been achieved, she said.

The bidding process took place at the end of October. After the NPL portfolio was divested, the bank's remaining bad loans, including new entries and those to be restructured by the bank, totalled Bt2.27 billion.

 The Nation