Page 33 - BAM ONE REPORT 2564 (ENGLISH VERSION)

Form 56-1 One Report 2021
Bangkok Commercial Asset Management Public Co., Ltd. 31

Business Operation Particulars

Overview of the business operation and
revenue structure Additionally, the Company manages NPAs which
The Company is the largest asset management are mostly empty lands (including real estate for
Company in Thailand, considered from total assets (Data agricultural purposes), hotels, commercial buildings,
as of 30 September 2021). From the information of the and residence in a type of detached house, townhouse
Bank of Thailand, total asset in the system of the asset and condominium as well as moveable properties and
management companies is 254,422 million Baht. Meanwhile, other securities. The Company obtains the NPAs by any
the Company has total asset of 124,281 million Baht or methods such as negotiation with the debtors to transfer
accounted for 49%. The Company operates the business the guarantee or repayment property, foreclosure for
of managing NPLs and NPAs under the emergency Decree debt settlement, and purchase of NPAs from other
on asset management Company B.E. 2541 (1998) and financial institutions directly. The Company will record
under the supervision of BOT by complying with the the list of NPAs at price upon transfer (cost of purchase)
notification of the Bank of Thailand No. SorNorSor.2/2563 or cost of purchase with related expenses (if any) from
regarding the criteria that asset management companies the Legal Execution Department or other financial
must comply, dated 3 February 2020 institutions. Then, the Company will finally distribute
rd
the NPAs.
The Company has the ability to acquire and manage
NPLs and NPAs, whereas the Company purchases the The Company has operating revenues from loan
NPLs from the financial institutions in Thailand including of receivable purchase, and revenue from NPAs, and
banks and other financial institutions and manages the investment in securities. The net asset mainly includes
NPLs by negotiation for debt restructuring with the (A) assets about business of NPLs management (such as
debtors to find the most suitable agreement for every net loan from receivable purchase, net receivables, and
party as much as possible. Most of NPLs purchased by or net pending payment receivable from auction) and (B)
transferred to the Company mostly contain guarantee assets regarding the business of NPAs management
as real estate, with the first mortgage registration. The (such as net investment in securities, net debtor by
Company records NPLs as loans from receivable installment, NPAs and advance payment for property
purchase at cost price of purchase or transfer acceptance. purchase fees and others).