EXIM Bank to gain from merger

KUALA LUMPUR: Export Import Bank of Malaysia Bhd (EXIM Bank) expects the benefit of the rationalisation exercise involving its merger with Malaysia Export Credit Insurance Berhad, completed in October last year, to be reflected in its financial year Dec 31, 2007.

Managing director and chief executive officer Kamal Mohd Ali said the bank expected to report a net profit of RM70 mil for the year ending Dec 31 against RM83.4mil recorded a year earlier, but added that it did not view this as a decline in performance.

“We see this fiscal year as a consolidated year for us. We are confident of achieving a net profit of RM80mil for the year ending Dec 31, 2007, leveraging on our branding exercise and additional products and services,” he said after the launch of the bank’s new logo yesterday.

Kamal said the new logo reflected the bank’s vision to be catalyst in Malaysia’s export development across Asia, Asia Pacific, the Middle East and the United States.

He said the bank had set a target to achieve 20% year-on-year growth in net profit for the next five years.

In addition, EXIM Bank is confidence of reducing its gross non-performing loans (NPLs) to 8% in the coming years by offering two new insurance products and four new services.

The products include a multi-currency trade finance policy to insure commercial and Islamic banks, as well as development financial institutions.

Another product, indirect exporter financial policy, aims to offer protection to banks that discount the domestic trade receivables of the indirect exporter, or suppliers without recourse to the same against non-payment by the direct exporter or buyer.

The four new services include the EXIM Overseas Guarantee Facility, for which EXIM Bank has allocated RM1bil to provide financing to small and medium enterprises (SMEs) on their overseas expansion plans.

MalaysiaKitchen financing facility is a fund amounting to RM130mil targeted to promote and develop internationally recognised Malaysian restaurant abroad.

Kamal said that the bank was confident of achieving a 80% take-up rate for the RM1bil EXIM Overseas Guarantee Facility fund y next year.

“We also certain that the MalaysiaKitchen financing facility will be fully disbursed next year,” he said, adding that these two fund would be the bank’s main contributors to group net profit next year.

Kamal added that the bank intended to open new branch in east coast and two branches in East Malaysia next year.

The bank has three existing branches in Ipoh, Penang and Johor Baru.

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