Exim Bank's outstanding loans climb 7%
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Exim Bank's outstanding loans climb 7%

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The Export-Import Bank of Thailand (Exim Bank) says its outstanding loans tallied 189 billion baht in 2024, up nearly 7% from a year before.

Of this amount, 20% was allocated to Thai entrepreneurs investing in CLMV (Cambodia, Laos, Myanmar and Vietnam) countries and new frontier markets, said Rak Vorrakitpokatorn, president of Exim Bank.

At the end of 2024, the bank had provided loans amounting to 75.8 billion baht to entrepreneurs investing in environmental, social and governance (ESG) initiatives, accounting for about 40% of the total outstanding loans, aligning with the bank's goal of becoming a green development Bank.

According to Mr Rak, the bank aims to develop financial innovations that support businesses in achieving sustainability while enhancing Thai entrepreneurs' competitiveness on the global stage.

A portion of the loans was dedicated to supporting Thai businesses in expanding into CLMV countries and high-potential new frontier markets. The outstanding loans and obligations in these markets amounted to 3.93 billion baht.

Given the volatile global economy and US President Donald Trump's policies, Mr Rak said Thailand's export markets may be affected, making expansion into new markets increasingly necessary to mitigate risks.

Exim Bank has 5,300 loan customers, 80% of whom are SMEs.

Mr Rak said the outstanding 189 billion baht's worth of loans were up 6.71% year-on-year, a record high since the bank's inception. Of this amount, newly approved loans amounted to 58.1 billion baht.

Investment loans accounted for 71.5% of total outstanding loans.

According to Mr Rak, Exim Bank developed "Greenovation" financial products to foster a sustainable trade and investment ecosystem, both domestically and internationally. These products align with global environmental trade regulations across the supply chain.

Examples include Exim Green Goal, a loan programme for businesses of all sizes looking to expand or transition to ESG-compliant industries; Exim Green Start, a financing option tailored for SMEs; and sustainability-linked loans, long-term credit facilities that support businesses aligned with sustainability goals.

The bank has also launched investment banking services, providing financial advisory support for green investment leaders (Green Catalyst) and promoting clean energy investment through bond guarantees.

Due to global economic uncertainties, last year saw a record-high number of entrepreneurs utilising export and investment insurance services, with the total insured business value reaching 193 billion baht, a 7.79% increase from the previous year.

As of the end of last year, the bank's non-performing loans (NPLs) stood at 6.34 billion baht, accounting for about 3% of total outstanding loans.

Meanwhile, Exim set aside an allowance for expected credit losses of 17.3 billion baht, reflecting a strong position, and representing an NPL coverage ratio of 272%.

This would help cushion higher risks from the economic slowdown and geopolitical tensions of today that are posing trade difficulties.

The bank reported a net profit of 1.05 billion baht, up 131% year-on-year.

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