BAM seeking bank partner before listing

          Move would help with capital stability

          Bangkok Commercial Asset Management (BAM) is looking for local banks to become strategic partners for its listing on the Thai bourse in order to stabilise the company's capital base, says newly appointed president Krit Sesavej.

          Mr Krit, who was appointed to head the country's largest asset management company on Sept 1, said BAM is expected to list on the Stock Exchange of Thailand (SET) around the fourth quarter of next year.

          It will approach local banks about becoming shareholders, while financial institutions are the company's business partners.

          BAM still has bad assets from the 1997 financial crisis.

          The listing plan is still in the terms of reference draft phase, and a financial adviser needs to be appointed.

          "We have not approached any banks yet. But I think a partnership would support the company's capital stability, while BAM would be another channel for banks to deal with bad asset management," said Mr Krit.

          Promoted from senior executive vice-president, he will focus on stabilising asset and profit growth at a level of at least 10% per year.

          BAM recorded satisfactory growth the past several years, he said. Sustainable growth will be a key factor supporting the initial public offering and strengthening business for the long run.

          Total assets under management after integration with Thai Asset Management Corporation are 380 billion baht, with 340 billion non-performing loans (NPLs) and the rest non-performing assets.

          The company is in the process of purchasing a combined 10 billion baht in NPLs from Bank of Ayudhya and the Government Housing Bank this year, said Mr Krit.

          He said BAM expects to record a net profit of 3.25 billion baht this year, up from its projection of 3.15 billion after it booked 2.7 billion in net profit as of last month.

          Cash collection was 10.6 billion baht compared with its full-year target of 12 billion.