BAM’s Net Profit Drops 83% in 2020 to ฿1.8Bn after Implementing TFRS9

Bangkok Commercial Asset Management Public Company Limited (BAM) has reported its yearly consolidated financial statement for the year ended December 31, 2020 through the Stock Exchange of Thailand as follows;

The net profit of the year 2020 was 1,841 million baht, dropping from a net profit of 10,679 million baht in 2019, a decrease of 82.76% YoY, however, as a result of adapting the Thai Financial Reporting Standards 9 (TFRS9) from January 1, 2020, BAM’s financial statements, financial ratios and some financial figures may not be comparable to previous years.

 

For the year ended 2020, BAM had total interest income 9,946 million baht which increased 8.8%, this resulted from partial debtors resumed their repayment after the end of moratorium programs. Meanwhile, NPLs / NPAs were 11,748 million baht. 

 

As of December 31, 2020, BAM total assets of 132,070 million baht, which increased by 10.1% from the year ended 2019. This results from the reclassification of financial assets regarding the first time adoption of the current Thai Financial Reporting Standards or TFRS after January 1, 2020 along with the deferred tax assets benefits received through retained earnings (unappropriated) of the year ended 2019.

 

Deferred tax assets were 5,380 million baht which increased 16.4% from the year ended 2019. It is mainly due to the recording of deferred tax assets as a result of temporary differences in accounting and taxation.

 

In addition, BAM had 90,273 million baht in total liabilities at the end of 2020, which increased by 14.7% from the year ended 2019. Debenture issuance and borrowing are the main components in total liabilities which used to invest in NPLs and NPAs. BAM also has 3 debentures due in 2021, totaling 7,000 million baht.