Exim Bank of Thailand grows 7.05%, focusing on green lending

Exim Bank of Thailand reported substantial growth in its first-quarter operations for 2023, with significant strides in environmental, social, and governance (ESG) lending.

The bank, led by Rak Vorrakitpokatorn, approved new loans amounting to 5,853 million baht, with outstanding loans and obligations increasing by 11,474 million baht, representing a 7.05% growth compared to the same period last year.

Remarkably, ESG-related loans and obligations have escalated by 55.19%, totalling 67,310 million baht, which now comprises 38.64% of the bank’s portfolio.

The bank’s commitment to promoting sustainable development is evident in its ongoing support of Thai businesses expanding into the CLMV (Cambodia, Laos, Myanmar, and Vietnam) and New Frontiers markets.

Loans and obligations within these regions amount to 43,257 million baht. Additionally, Exim Bank emphasizes the importance of supporting small and medium-sized enterprises (SMEs), with 81.15% of its customer base of 5,607 entities fitting this category.

Exim Bank‘s export and investment insurance services have progressed, reaching an impressive 54,092 million baht, a 7.45% increase from the previous year.

Proactive approach

The bank has also fostered approximately 19,840 entrepreneurs through its comprehensive support programs, which include incubation, knowledge sharing, business matching, and financial consultation.

Despite non-performing loans (NPLs) standing at 8,600 million baht, the bank’s Expected Credit Loss (ECL) ratio remains robust at 185.72%, indicating a strong financial buffer to cover potential losses.

The first quarter of 2023 closed with Exim Bank achieving an operational profit of 805 million baht, an 18.71% increase from the prior year, and reporting a net profit of 132 million baht.

Rak emphasizes the bank’s proactive approach in its Go the Extra Mile campaign and its role as a Green Development Bank, creating Greenovation to assist Thai businesses of all sizes in the Green Export Supply Chain.

In response to government policy, Exim Bank has reduced its Prime Rate by 0.40%, amounting to 6.35% per annum, offering competitive lending rates, especially to SMEs.

Looking ahead, Thailand’s economy is projected to grow by 2-3% this year, marking a recovery across key sectors such as consumption, investment, tourism, and exports after a two-year slump.

However, amidst geopolitical tensions, a slow manufacturing recovery, and high household debt, Thai businesses must adapt and explore new opportunities on the global stage.

Exim Bank is at the forefront of this transformation, developing Greenovation to elevate Thai exports as Green Products and fostering a Green Export Supply Chain.

The bank offers special interest rates starting at 3.85% per annum to suppliers and end buyers in the export-related supply chain, facilitating access to low-cost capital for businesses of all sizes, reported Khaosod.