Bangkok: BAM has announced its intention to expand its portfolio of non-performing loans (NPLs) by an additional 30 billion baht, signaling a robust strategy to enhance its asset management capabilities. This expansion is set to be supported by a budget allocation of 5-6 billion baht. The company is currently in negotiations with five major banks to manage these NPLs and is aiming to handle a total of 150 billion baht in assets. Additionally, BAM is on the verge of finalizing a joint venture with one of these banks to establish an asset management company (AMC) within the year.
According to Thai News Agency, BAM is also broadening its housing accessibility initiatives. The new "Maha Chon Plus" project will increase the property price ceiling to 5 million baht, offering over 21,000 properties valued at 32 billion baht. This initiative builds on the success of the "Public Property for Homes of Those Struggling in Life" project, which provided homes to over 1,500 individuals, focusing on assisting those with limited access to financial loans.
Ms. Thongurai Limpiti, Chairperson of BAM, highlighted that the previous housing project aimed to address the needs of low-income earners and those with uncertain incomes by adapting the terms of sale for foreclosed properties. The project's success was measured by the number of families who gained homeownership and stability.
Dr. Rak Vorakitphokathorn, CEO of BAM, stated that the new project, "Public Property Plus," is aimed at widening housing opportunities with a revised price ceiling and an increased number of available properties. The properties include single-family homes, townhouses, condominiums, and more, with flexible financial terms to attract potential buyers.
Moreover, BAM's asset portfolio is set to grow by 5,000-6,000 items, focusing on aiding SMEs like small factories and hotels. The company aims to reduce the average asset holding period from 8.5 years to 5 years, thereby enhancing asset management flexibility.
For 2026, BAM targets total collections of approximately 17,900-18,000 million baht, with net profits projected at around 2,000 million baht. The company plans to decrease bond issuance, opting instead to utilize internal liquidity and short- to medium-term credit lines for financing. A significant portion of the budget is earmarked for acquiring new assets, with an additional 30,000 million baht in NPLs for management.
Dr. Rak further revealed that BAM is in discussions with five leading commercial banks to jointly manage NPLs, with expectations of forming a joint venture asset management company with one bank within the year. The remaining banks will collaborate through bilateral agreements, anticipated to commence in the third quarter. Total assets under management are projected to reach approximately 150 billion baht.