Exim Bank returns to black

Source From (The Sun Daily): http://www.thesundaily.my/news/386911

Posted on 23 May 2012 - 04:16pm
Last updated on 23 May 2012 - 04:23pm

KUALA LUMPUR (May 23, 2012): Export-Import Bank of Malaysia Bhd (Exim Bank) aims to approve RM6 billion worth of direct loans and guarantees to Malaysian exporters this year compared with RM4.7 billion last year.
Managing director and CEO Datuk Adissadikin Ali said the bank was confident to grow its portfolio, with manufacturing and construction sectors remaining the main growth contributors.
"This is one way to achieve our target of contributing 3% of the nation's gross domestic product by 2018," he told a media briefing today.
The government-owned bank returned to black for its financial year ended Dec 31, 2011, with a pre-tax profit of RM134.6 million from a pre-tax loss of RM299.5 million in 2010.
The bank's operating revenue also rose 27.5% to RM171.6 million last year from RM134.6 million in 2010.
The growth revenue is largely credited to a combination of key initiatives implemented by the bank during the year as part of its plans to improve its business and operational effectiveness as well as turn around its financial position, Adissadikin said.
This year, the bank is looking to maintain profit, while expanding its business portfolio, he said.
"Banking business remains our core revenue earner, contributing about 40% of our total income for last year," he said, adding that this year it would be rather the same value.
However, with higher expectations that there will be more recognised contributions from the trade credit insurance and trade advisory business segments, he said.
"Today, Exim Bank is supporting the financing needs of Malaysian companies and investors with operations in four continents spread across 24 countries worldwide.
"Asean and the Middle East continue to be major contributors to the bank's portfolio, with two-thirds of its exposure, while Africa, Europe and Asia-Pacific make up the rest," he said.
Adissadikin said the bank has registered about 80% rise in loan applications.
The bank recorded 50% approval level last year, with 97 approvals from 193 applications, compared with 38% in 2010.
Last year, EXIM Bank's total assets stood at RM6.3 billion, up RM672.3 million from 2010.
Adissadikin said the bank is set to expand its reach further by giving better option to its clients with the introduction of Takaful products, namely Comprehensive Takaful Shipment and Specific Takaful.
Exim Bank, wholly-owned by the Malaysian Government, was incorporated in 1995 to promote development of cross-border transactions mainly through loan facilities and insurance coverage. – Bernama