EXIM Thailand announced its operating results in the first half of 2023, effectively bridging the capital gap for an expanding number of Thai entrepreneurs, leading to a 5.02% year-on-year increase. This achievement contributed to a total outstanding loan portfolio of 161,216 million baht. Playing a more active role in supporting national development, the Bank provided loans amounting to 73% or 117,133 million baht for this purpose. It also strengthened efforts in promoting sustainable development with 28% or 45,544 million baht in loans directed towards eco-friendly businesses. Additionally, EXIM Thailand succeeded in addressing the opportunity gap, as evidenced by a surge in clients, reaching a total of 6,260 new customers. The Bank also demonstrated its commitment to empowering Thai entrepreneurs by providing both financial and non-financial support to over 26,000 individuals, with a combined assistance value exceeding 91,600 million baht.
Dr. Rak Vorrakitpokatorn, President of Export-Import Bank of Thailand (EXIM Thailand), revealed EXIM Thailand's operating results in the first half (January-June) of 2023 that, despite the short-term contraction in exports amid the Thai economic recovery driven mainly by tourism and private consumption, EXIM Thailand maintains an optimistic outlook for future growth in alignment with global economic trends. The Bank remains steadfast in its mission to bolster the Thai economy from the grassroots while also promoting social and environmental development. As of the end of the second quarter of 2023, the Bank's new loan approvals amounted to 20,068 million baht, of which 5,869 million baht was for SMEs, and total outstanding loans grew by 7,708 million baht or 5.02% year-on-year to reach 161,216 million baht.
With its commitment to the role as the "Green Development Bank," actively supporting national development in conjunction with social and environmental protection, as of the end of June 2023, EXIM Thailand recorded outstanding loans for investment of 117,133 million baht. This serves as a key mechanism in uplifting Thailand's infrastructures, energy, logistics and industrial sectors, particularly industries conducive to bio-circular-green (BCG) economy. Outstanding loans for eco-friendly projects amounted to 45,544 million baht, representing 28.25% of the Bank's total outstanding loans and up by 4.55% year-on-year.
Besides, EXIM Thailand has firmly been determined to perform as a lead bank in synergizing with a broad range of alliance networks to empower Thai businesses and enable them to establish a strong presence by expansion their trade and investment in international markets. Hence, as of the end of June 2023, EXIM Thailand has recorded total outstanding loans of 60,464 million baht for international projects. Classified by principal market, the Bank consistently supports Thai entrepreneurs in expanding their businesses to the CLMV (Cambodia, Lao PDR, Myanmar and Vietnam) and New Frontiers with promising potential. As of the end of the second quarter of 2023, outstanding loans to the CLMV and New Frontiers amounted to 49,435 million baht, representing 30.66% of the Bank's total outstanding loans.
In the backdrop of global economic uncertainties, EXIM Thailand has sought to boost confidence and safeguard against risks for Thai exporters and investors through its export credit and investment insurance facilities. As of the end of the second quarter of 2023, EXIM Thailand recorded 96,409 million baht in export credit and investment insurance turnover.
With consistent support through provision of both credit and insurance facilities, as of the end of June 2023, EXIM Thailand recorded a customer base of 6,260, up by 14.32% year-on-year, and as high as 84.07% of the total customers are SMEs. This has reflected the Bank's priority given to SMEs moving alongside them in their business operations and ensuring inclusivity for all including SMEs and vulnerable groups with a view to empowering Thai entrepreneurs to well compete on the global stage, adhering to higher trade standards in the new era. To this end, financial schemes have been launched such as EXIM Better Rubber Export Financing, which offers a revolving credit to entrepreneurs in the rubber industry to support their purchase of rubber and enhance their financial liquidity, so that they would be able to export their rubber products to a greater extent. Moreover, EXIM Thailand has collaborated with alliance agencies in organizing TOP X Executive Program Class 2 to develop exceptional international business entrepreneurs, providing them with insights into business strategy formulation and implementation in the face of the new world trade, with focus on penetrating such new frontiers as Saudi Arabia and other countries in the Middle East, preparation for and adaptation to the megatrends, business operations with environmental, social and governance (ESG) concerns, and promotion of online trade so that SMEs would be able to do more cross-border trade, as well as provision of training, business matching and financial advisory services. As of the end of June 2023, EXIM Thailand had financially and non-financially assisted more than 26,000 entrepreneurs involving a total amount of over 91,600 million baht.
Meanwhile, EXIM Thailand has placed significant emphasis on financial management to ensure long-term sustainability. The Bank recorded a total Non-performing Loan (NPL) amount of 5,861 million baht with NPL ratio of 3.64% as of the end of June 2023. It set aside allowance for expected credit loss of 13,509 million baht, contributing to an NPL coverage ratio of 230.47%, which is a strong position. As a result, as of the end of the second quarter of 2023, EXIM Thailand posted a pre-provision profit of 1,591 million baht, representing a growth of 20.62% year-on-year.
For the second half of 2023, EXIM Thailand will remain steadfast in driving the organization toward sustainable development in economic, social and environmental dimensions with untiring determination to promote ESG businesses through development of products and services that would respond to customers' demand. For example, the Bank has launched EXIM Green Start Credit scheme to encourage Thai entrepreneurs, SMEs in particular, to boost their businesses gearing up toward environmental standards, join the global community in solutions of environmental problems, and turnaround Thai export sector to be competitive sustainably. EXIM Thailand has pioneered the integration of environmental objectives of the draft Thailand Taxonomy standard into its credit underwriting process, aligning with national standards. It has also been committed to empowering Thai entrepreneurs, providing them with access to financial resources, tools and innovations in a total solution manner, highlighting its role as the Green Development Bank to uplift competitive advantage of Thai businesses in the global arena sustainably.