EXIM Thailand Announces January-September 2024 Operating Results
EXIM Thailand has announced its operational performance as of the end of the third quarter of 2024. The Bank has forged ahead in uplifting Thai entrepreneurs’ potential for business operations with environmental, social, and governance (ESG) awareness. It recorded outstanding loans of 62,543 million baht for businesses with ESG concerns, representing 36.65% of total outstanding loans and contingents of 170,630 million baht, which increased by approximately 3,000 million baht year-on-year, while the Bank’s new loan approvals amounted to 34,290 million baht.
Mr. Rak Vorrakitpokatorn, President of Export-Import Bank of Thailand (EXIM Thailand), revealed that EXIM Thailand’s operating results in the third quarter of 2024 show the Bank’s support for export-import and domestic and overseas investment, along with enhancement and development of Thai entrepreneurs’ potential for their sustainable growth. As of the end of the third quarter of 2024, the Bank recorded new loan approvals of 34,290 million baht, and total outstanding loans of 170,630 million baht, around a 3,000-million-baht growth year-on-year. Of this total, 124,720 million baht or 73.09% was outstanding loans for investment, 44,850 million baht of which was for international projects. Classified by markets, EXIM Thailand has consistently supported Thai business expansion to the CLMV and New Frontiers with high potential, involving total outstanding loans of 39,593 million baht.
Under the role of Green Development Bank, EXIM Thailand has vigorously developed green financial innovations (Greenovation), e.g., EXIM Green Start credit facility for SMEs to build trade and investment ecosystems both domestically and overseas. The Bank has sought to empower Thai businesses to adapt to and comply with international trade measures that comprehensively address environmental issues throughout the supply chain. As a result, EXIM Thailand recorded outstanding ESG loans of 62,543 million baht, representing 36.65% of total outstanding loans.
In the social dimension, EXIM Thailand is committed to ongoing development of products and services to assist entrepreneurs, vulnerable groups in particular, under such schemes as the pre-emptive debt restructuring measures for SMEs so that they can receive assistance from the Bank as required and on a timely basis, EXIM Happy Export Credit to fulfill entrepreneurs’ working capital requirements for their export and export-related businesses, aiming to drive the Thai export sector as a strong and inclusive economic engine, and Happy Foreign Exchange Forward Contract to boost liquidity and manage risks for entrepreneurs engaging in international businesses amid foreign exchange fluctuations, as well as the measure for its clients affected by the recent floods, which is available until December 2024.
Amid global economic uncertainties and instability in many regions around the world, EXIM Thailand has vigorously reinforced confidence and built immunity for Thai exporters and investors. As of the end of the third quarter of 2024, the Bank recorded 161,285 million baht in export credit and investment insurance business turnover, up by 8.66% year-on-year.
With EXIM Thailand’s expanded role in providing mainstream support for credit and insurance facilities for Thai businesses of all sizes and in all industries, as of the end of the third quarter of 2024, the Bank recorded a customer base of 5,634, of whom more than 80% were SMEs. Besides, incubation training, business matching and financial advisory services are made available on a full-fledged basis. As of the end of the third quarter of 2024, EXIM Thailand had enhanced the potential of 21,500 accumulated entrepreneurs, working alongside those who are ‘little people’ and vulnerable groups, so that they would be able to compete on the global front and adapt to the increasingly stringent global trade standards and regulations.
In the governance dimension, EXIM Thailand gives high importance to sustainable finance management. As of the end of the third quarter of 2024, the Bank posted a pre-provision profit of 2,426 million baht. Non-performing loans amounted to 8,603 million baht, while the Bank set aside an allowance for expected credit loss of 17,708 million baht, reflecting a strong position, and contributing to an NPL coverage ratio of 205.83% to safeguard against risks that may arise from the prevailing economic slowdown and geopolitical tensions which may impede trade and investment.
“EXIM Thailand has been advancing as the Green Development Bank to steadily support Thai entrepreneurs. We have collaborated with public and private alliance agencies both at home and abroad to drive Thailand toward a low carbon society and sustainable development goals (SDGs), including support for vulnerable groups affected by intensifying natural disasters in line with climate change. We aim to transform Thailand into the ESG economy that responds to the demand and expectations of the public sector and all stakeholder groups,” added Mr. Rak.
EXIM Thailand received corporate credit ratings of AAA(tha) and BBB+
