BAM reveals strategic plan for 2018, ready to move forward and grow sustainably

          BAM revealed its strategic plan for 2018 with which the company will move forward and grow sustainably, without focusing on maximizing profit. The company is now prepared and aims to be a digital enterprise. It also disclosed its operating results of 2017 from which the sum of cash collections was 15,269 million baht in total and the net profit was 4,500 million baht. The company further specified that in 2017 it has acquired and received transfer of NPLs and NPAs worth 10,963 million baht from financial institutions for management.

          Mrs. Tongurai Limpiti, the Chairman of the Board of Directors of Bangkok Commercial Asset Management Public Company Limited or BAM mentioned the direction of the company’s operations in 2018, stating that BAM will move forward and sustainably grow and that it is committed to operating in accordance with being the best asset management company in the country by laying the foundations for becoming a digital enterprise that focuses on providing customers with digital marketing in order to meet the needs of every group of customers.

          Meanwhile, the company’s potential will be employed to cover all aspects of operation which include facilitation of debt restructuring and purchase of BAM's properties foreclosed for NPL and NPA customers with measures and projects. BAM will also treat its customers as commercial banks do to their prime customers.

          The Chairman also talked about the company's financial figures for the year 2017, revealing that BAM currently has total assets of 99,933 million baht, total income of 7,653 million baht, net profit of 4,500 million baht, and net earnings per share of 1.67 baht.

          With regard to the NPL trend in the financial sector in 2018, it is expected to be around 3%, which is flat, remaining at the same level as of that in 2017 due to the positive outlook for the economic growth. As of December 2017, the amount of NPLs in Thailand’s and overseas commercial banking systems was 429,030 million baht in total, and Thailand’s commercial banks had NPAs worth 86,232 million baht. As of December 31, 2017, BAM owned 73,809 NPL accounts, representing total debt of 442,052 million baht, and the company had 16,377 items of NPAs worth 45,177 million baht.

          Mr. Bunyong Visatemongkolchai, the Acting President of BAM disclosed the company’s operating results for the year 2017, stating that BAM has witnessed satisfactory overall operating results. It obtained total revenue from debt restructuring and asset disposal of 15,269 million baht or 99.95%, compared to the expected revenue of 15,277 million baht, and the net profit was 4,500 million baht. Also, regarding the operation in 2017, BAM has increased its asset size by purchasing and receiving transfer of NPLs and NPAs from financial institutions worth 10,963 million baht for management.

          Regarding the strategic plan for 2018, the company expected an upward trend in its operating results. It has forecast the revenue gained from NPL and NPA management of 16,436 million baht, consisting of the revenue from NPLs of 10,220 million baht and that from NPAs of 6,216 million baht. Meanwhile, the company’s net profit is expected to be at 4,193 million baht. Besides, BAM’s aim of increasing its asset size gained from bidding from financial institutions would account for an investment of 8,315 million baht.

          For the management of NPLs, guidelines for debt compromising have been set up to suit different groups of customers, to ensure that the debt restructuring process for retail debtors can reach a conclusion in no time in order to generate definite cash flow in the long run, and to allow customers to conduct debt compromising process with BAM at all stages. Regarding the year 2017, BAM has launched a project entitled “Sook Jai Dai Baan Kuen” (Happy Reclaiming Housing Collateral) to provide its retail customers with an opportunity to repay their debt and take back collateral with flexible conditions. There were 391 customers participating in the project, amounting to 700.76 million baht.

          In terms of NPA management in 2017, the company has launched two projects which are the “Sabai Condo” (Comfortable Repayment Condo) project and the “Condo Mahachon” (Condo for the Public) project. These two schemes have been established with an aim of supporting individuals who have a limited budget or those who are unable to access financial resources from financial institutions in having their own housing. There were 332 purchasers for both “Sabai Condo” and “Condo Mahachon” projects, amounting to 117.66 million baht.

          In addition, the company has launched a project entitled “Baan Sabai” (Comfortable Home), concerning which, there were 73 purchasers in total, amounting to 139.77 million baht, and another project entitled “Land for Saving” which obtained 93 purchasers in total, amounting to 109.69 million baht. Moreover, during the past year, BAM has organized and set up booths in order to support sales in various house and condo events from which the purchase of properties amounted to 856.49 million baht.

          Mr. Bunyong further stated that in the year 2018, the company’s strategy for NPA management is to maintain NPAs in good condition conducive to sales. It will focus on renovating assets for their good and attractive condition in order to be sold at affordable prices. There would also be a scheme that will make it simpler for buyers to own properties.

          As for sales of properties, the strategies for sales and promotions include updating the company’s website as a marketplace as well as organizing promotional activities which involve promotions, campaigns, and strategies, that would suit each group of assets and target customers, regarding  houses, plots of land, condominium units, and properties for investment.