ExIm Bank envisions growth in loans of 5 per cent

The Export-Import Bank of Thailand is aiming for a growth in loans of 5 per cent this year, with greater emphasis on SME exporters, export credit insurance and training programmes.

EXIM Thailand President Kanit Sukonthaman said at a press conference on Tuesday that these facilities aim to help incubate new SME exporters as well as bolster existing SME exporters’ competitive edge in the international trade arena.

He also envisioned the same profit level as that achieved in 2011, when the bank posted a net profit of Bt605 million, a 317.7 per cent increase from Bt145 million the previous year.

Kanit attributed the increase to a growth in loans. Loans grew 15.9 per cent and the outstanding loans reached Bt65.45 billion.

"The loan growth was mainly attributable to an expansion of longterm credit, both domestic and overseas," he said.

During 2011, the bank also saw a decline in general operating costs as well as interest expenses due to improved management of funding costs.

Despite loan growth, nonperforming loans (NPLs) at the end of 2011 of Bt3.34 billion accounted for only 5.10 per cent of total loans, compared to the 6.27 per cent at end2010. Provision to NPLs ratio also increased from 68.8 per cent in 2010 to 89.9 per cent in 2011.

During the year, the bank approved new financial facilities worth Bt41.33 billion, above its Bt34.4 billion target. Of the total, Bt4.477 billion was export credit insurance to help exporters mitigate nonpayment risks from foreign buyers as a result of global economic uncertainties. Bt13.5 billion was extended to SME exporters.