RM70m net profit target reach within

Export-Import Bank Bhd (EXIM Bank) says it is likely to achive its targeted RM70 million net gain this year and expects profit growth of between 15 and 20 per cent a year until 2011.

The export financing and insurance provider also anticipates a RM80 million net profit for 2007.

Managing director and chief executive officer Kamal Mohd Ali said the target is part of the bank’s five-year strategic plan. “We want to close this year with RM70 million in net profit. I strongly believe that we will meet the target,” he told the news conference at the launch of EXIM Bank new corporate logo in Kuala Lumpur yesterday.

The bank’s outlook remains bright. In late 2005, it merged with Malaysia Export Credit Insurance Bhd (Mecib) and absorbed all of Mecib operations.

The merger saw EXIM Bank, which was established in 1995 as a wholly-owned subsidiary of Minister of Finance Inc, expanding its scope to include export credit insurance while maintaining its lending activities.

Kamal said EXIM Bank’s net profit rose 55 per cent to RM83.4 million in 2005 form RM53.9 million in 2004. Operating revenue grew 35 per cent to 135.6 million.

“Our gross non-performing loans in 2005 improved to 12.7 per cent from 28.5 per cent in year 2004.

“During the period under review, EXIM Bank approved loans nad guarantees totaling RM1.2 billion, an increase of 51 per cent from the previous corresponding period,” he said.

Major recipients of the bank’s lending include construction, energy, commodity and manufacturing sectors.

Kamal also said that the bank’s Export Credit Refinancing (ECR) Schame saw increased utilization from RM6.8 billion in 2004 to RM7.3 billion in 2005.

Last year, EXIM Bank insured Malaysian exports valued at a record RM1.87 billion, up 19.9 per cent from 2004.

“For this year, total loan and insurance approvals as at October 31 stood at RM2.23 billion, while ECR utilization was at about RM 7 billion.

“Overall, this is a very encouraging result for EXIM Bank as our total business exposure has increased by 18 per cent from 3.65 billion to RM4.3 billion as at October this year,” he added.

Kamal said EXIM Bank plans to convert its branches in Ipoh, Penang and Johor Baru as full-fledged banks next year. It will also open a few branches in the East Coast, Sabah and Sarawak.

As part of five-year plan, EXIM Bank has also introduced several new facilities which include Multi Currency Trade Finance Policy, Indirect Exporter Financing Facility and Trade Co-Financing Arrangement Facility.

For the small and medium scale enterprises, EXIM Bank introduced EXIM Overseas Guarantee Facility, Malaysia-Kitchen Financing Facility and Overseas Investment Financing Facility.

Back to News