Mr. Somporn Moonsrikaew, BAM President, revealed that BAM could meet its cash collection target in the first quarter of 2020 and relatively brought in a net profit of Baht 699 million, which was close to its usual first-quarter results over the past three years. For the first quarter of 2019, however, BAM received payment from one of its major debtors in an amount exceeding Baht 5 billion.
Moreover, as from January 1, 2020, BAM has adopted the new TFRS9 for the first time, thereby impacting its interest income due to a change in its income recognition from the cash basis to the accrual accounting. Accordingly, BAM earned interest income/profit from NPLs in an actually received amount of Baht 1.786 billion and an accrued amount of Baht 1.238 billion, resulting in higher interest income. Nonetheless, to truly reflect the operating results, the accrued interest income had to be deducted and recorded as “credit loss from accrued income” of Baht 1.238 billion.
In Q1/2020, most of its debtors and property buyers remained capable of complying with the conditions approved, thus enabling BAM’s performance to be close to the target as mentioned earlier. Since March 2020, the Covid-19 pandemic outbreak has adversely affected the economy, society and well-being in all business sectors. BAM has thus modified its marketing plan and strategy to cope with this crisis by organizing an Online Property Sale Event by BAM under the concept “Visit the Event on Screen, Anywhere.” At such event, more than 900 property items were offered for sale at special prices via the virtual booth on BAM website. To adjust to the new normal, reservations for property purchase can be made online anywhere and anytime around the clock. Moreover, during May 1-30, 2020, BAM boosted its sales promotion by offering a fee-free transfer incentive together with the “On Reo Rap Loei” (get a reward for speedy transfer) campaign under which customers who have purchased BAM properties and completed transfer of proprietary right within 30 days after the end of the campaign will be eligible for a gift voucher worth up to Baht 100,000. BAM has continuously held negotiations for sales of large property items to investors and also held auctions of several properties that could attract a substantial number of interested buyers.