by Thammarat Thadaphrom

    

BANGKOK (NNT) - Government Housing Bank (GH Bank) lent out about 62.4 billion baht during the first quarter of 2022, an increase of 33.21%. It said most borrowers, 74.47%, were low and middle-income earners.

 

Chatchai Sirilai, GH Bank President, said the bank’s most popular product is the loan program of no more than 2.5 million baht. At the end of the quarter, GH Bank saw 1.49 trillion baht worth of non-performing loans (NPLs), an increase of 2.1% from the previous quarter. The bank had a total asset of 1.54 trillion baht, an increase of 2.25%. Of this number, 1.31 trillion baht was savings and 57.5 billion baht was NPLs.

 

Chatchai said that the bank had prepared 115.6 billion baht for potential NPLs and had generated a net profit of 3.49 billion baht.

 

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GH Bank’s BIS Ratio at the end of February was 15.28%, well above the Bank of Thailand’s criteria of 8.5%. The BIS Ratio determines a bank’s capital to its risk. The national bank tracks a bank’s ratio to ensure that it can absorb a reasonable amount of loss and complies with statutory capital requirements.

 

Chatchai attributed the government’s economic stimulus programs to the positive figures. These initiatives include the reduction in land process fees and the relaxation of housing loans.

 

The GH Bank President expects people to borrow more before the benchmark rate increases in the future.

 

 

-- © Copyright NNT 2022-04-14

 

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Have I read, and understood this correctly ?

The GHB has total " assets " of 1.54 Trillion Baht, and have seen 1.49 Trillion of NPL Debt.

I understand this to mean that the Bank has 3.03 Trillion in total of " assets " of which almost 50 % is delinquent Debt, as NPL will be on the books as Loans to Debt Ratio.

And they are still lending to Low and Middle Income Borrowers.

POP !