On January 18, 2019, Mr. Chatchai Payuhanaveechai, Director of the Government Savings Bank, revealed the bank's performance for 2018, stating that the bank achieved a net profit of 36.3 billion baht, driven by net interest income exceeding 64 billion baht. This success stemmed from effective asset and liability management in line with market interest rate trends and efficient liquidity management. Additionally, the bank generated non-interest income of over 18 billion baht, an increase of 7.9 billion baht from the previous year, particularly from profits on investment sales (IRPC), loan service fees, card and electronic business revenues, and commission income. This was a result of continuous improvements in products and services to meet customer demands, along with attractive marketing strategies.

“The net profit of the Government Savings Bank contrasts with commercial banks, which have seen a decline in profitability. 95% of our profit comes from increased loan expansion, unlike commercial banks that derive 50% of their profit from loans and 50% from fees. We earn interest every day because interest never sleeps,” Mr. Chatchai stated.

In 2018, the bank focused on managing non-performing loans and emphasized efficiency in all processes according to debt resolution measures. The bank prioritized debt restructuring based on the age and importance of the debt, engaging in negotiations and restructuring efforts. It opened 80 debt management centers nationwide, enhancing the agility of managing non-performing loans, resulting in good asset quality.

As of December 31, 2018, the non-performing loan (NPL) ratio was 2.15% of total loans, lower compared to the overall commercial banking system, and the bank maintained financial stability with a capital fund exceeding 180 billion baht, or 14.8%. The bank also contributed 20 billion baht to the national treasury in 2018, ranking fourth among state enterprises and first among state financial institutions.

“In 2018, customer demand for loans continued to grow, while the Government Savings Bank was able to offer products that matched customer needs and organized marketing activities suitable for each segment, resulting in an overall customer growth of 22% from 2015, especially among target customers in the youth category entering university (ages 18-22), which increased by 41%, and young professionals (ages 23-30), which rose by 23%,” Mr. Chatchai added.

Regarding government policy projects, such as resolving informal debt, the state welfare card program, promoting financial literacy, and vocational training to enhance income for citizens and small entrepreneurs through the People's University and Government Savings Bank Youth Development programs, these initiatives have been very successful, leading to an increase in the quality of life index for grassroots customers of the bank from 0.6285 in 2016 to 0.7180.

However, over the past four years (2015-2018), the bank has set a goal for continuous growth. As of December 31, 2018, the bank had total assets of 2.71 trillion baht, managed according to the established guidelines, with total loans of 2.11 trillion baht, an increase of 97.7 billion baht or 4.85% from the previous year, and deposits of 2.29 trillion baht, ranking first in the Thai banking system, an increase of 42.1 billion baht or 1.87% from the end of the previous year.

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