ASEAN KEY DESTINATIONS
KTC enjoys 1,538 Million Baht profit in nine months with continuously low NPL, despite market conditions.
KTC reveals consistent growth despite economic slowdown. Total profit over period of nine months is 1,538 Million Baht or a growth of 16%. Credit card member spending rose by 11.9% while NPL is continuously lowered to 2.2%. The firm is planning a major offline plus online marketing campaign “Lucky PIN with KTC” where members spending with their credit card can choose the prize they want on their own, simply by registering on the web site or through the mobile application.
Mr. Rathian Srimongkol, President and Chief Executive Officer, “KTC” or Krungthai Card Public Company Limited, reveals, “The consumer finance industry as a whole is still growing throughout the past nine months, despite the economic recess, but at a possibly lower rate than the estimate. KTC is still capable of generating income and profit from the increase in card spending and in debtor’s amount for both credit card and personal loan businesses. We have also been able to manage the non-performing debt at an appropriate level, thanks to our stringent card approval policy and efficient debt collection process.”
“In the past nine months, we were able to generate 1,538 Million Baht of profit or a 16% rise over the same period of the previous year. Contributing to this was the 9% total revenue growth for the nine months, lower financial cost, more efficient debt collection and continuously lowered NPL. For the third quarter of 2015, our net profit is 499 Million Baht or an 8% rise from the second quarter of 2015 but lower than 504 Million Baht of the third quarter of 2014. This is because of the smaller revenue growth, compared to increased expenses from fees paid to third parties, write-off of lost debt and marking of presumably lost debt which increases in relation to the growth of the portfolio.”
“Information as of September 30th, 2015 indicates that KTC has a total asset of 54,773 Million Baht or 8% higher than the same period of the previous year which was at 50,852 Million Baht. Net account receivable is 50,982 Million Baht or 8% higher than 47,005 Million Baht of the same period of the previous year. Total member base is 2.5 million accounts or 3% expansion from the same period of the previous year. This is 1.80 million credit card accounts with net credit card debtor of 34,743 Million Baht; and, 735,269 personal loan accounts with net personal loan debtor of 16,051 Million Baht. Overall NPL is down from 2.7% to 2.2%: this is from 1.9% to 1.4% for credit card business and from 1.2% to 1.0% for personal loan business. Credit card spending growth is at 11.9% which is lower than the industry average of 7.3%.”
“Our total income in the third quarter of 2015 is 3,916 Million Baht or a 8% increase from the same period of the previous year from income from interests and fees of credit card and personal loan businesses. Operational expense is 1,579 Million Baht or a rise of 14%, mostly from fees paid to third party debt collecting companies. Bad debt and doubtful accounts have risen to 14%. Nevertheless, we are able to bring financial expense down by 13%, resulting in the total expense of the company being 3,287 Million Baht or a rise of 10%.”
“In the third quarter of 2015, we have available credit line of 26,340 Million Baht. Of this amount, 18,030 Million Baht is from Krungthai Bank and 8,310 Million Baht is from other commercial banks. Financial cost in this third quarter is at 3.73%, with a 9-month average being 3.94%, down from the same period of the previous year as we have been able to issue a new debenture with lower interest rate to replace the one reaching maturity. The ratio of debt to shareholders’ equity is 5.68, which is lower than the obligation of 10.”
“As for our marketing plans for this last quarter of 2015, we will continue to work on four main cores: 1) strive for excellent services and creative marketing activities in all categories in order for KTC credit card to become the members’ main credit card; 2) return profit to KTC credit card and KTC Proud instant loan members through the offering of Forever Rewards points which they can use to claim products and services at more than 3,000 locations or to do so online, as well as the Flexi installment option for up to 10 months to make it easier for members to pay; 3) marketing campaigns for KTC Proud instant loan for members to use their credit line and repay over a period of as long as 36 months at special interest rates with the Flexi option, together with quick and instant approval and payment at KTC Touch service centers; 4) continuous development of digital channels by adding new services to the TapKTC mobile application for members to withdraw cash online into their bank account in real time at any hour of the day. There are plans, as well, to increase the number of establishments accepting our cards in order to expand our income base.”
“To encourage more credit card spending towards the end of this year, we have launched a new marketing campaign spanning the offline and the online worlds. This ‘PIN Your Wish with KTC’ is a collaboration with over 60 partners in dining, shopping and traveling categories to offer 2,016 prizes for a total value of over 23 Million Baht. Members spending with their credit card will earn the rewards points as they normally do. But in addition to that, they will be given a PIN with which they can choose the prize of their own desire. All they need to do is register on KTC web site or through the TapKTC mobile application from now until January 31st, 2016.”
“We believe that, with these plans in place, we will be able to achieve the growth and operational targets as expected.”
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