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NEW UPDATES Asean Affairs  21 February 2014  

KTC earns record profits of Bt1.283 billion in 2013, up 403%

The company projects to be No. 1 in Thailand’s credit card market in next 5 years.

KTC posted record earnings of Bt1.283 billion for the year 2013, which is the highest figure since the company was founded, with solid improvements in all aspects of operations. The company also reported profit per share of Bt4.97 for the year, and announced a sustainable business development strategy that will enable it to secure No. 1 position in the country’s credit card market in the next five years. To achieve this ambitious goal, the company has adopted a new brand tagline, Make It Better, to ensure all stakeholders including members, shareholders, staffs, business partners and the society are offered something better in all dimensions. Amidst possible slowdown as a result of various negative impacts, the company remains optimistic about continued growth of the credit card and personal loans segments.             

“KTC” or Krungthai Card Public Company Limited President and Chief Executive Officer Mr. Rathian Srimongkol said, “In 2013, our profits hit a record high at Bt1.283 billion and declared profit per share of Bt4.97. It is a greater delight that the company was able to earn record profits faster than expected despite facing political turmoil and economic uncertainties in the second half of last year that resulted in declining consumer confidence and slowing domestic demand. However, with our cross-functional collaboration and concerted effort of the entire team for mission-based obligation that enables the company to deal with crisis and perform efficiently.”

“Four key drivers for such a strong performance with more than one billion baht of profits are 1) the company’s well-organized, efficient risk management 2) the adjustments in its computer system for more compatibility and synchronization in core business processes 3) streamlining a corporate workflow for significant operating cost reduction in the long run, and 4) more accessible marketing campaigns.”               

“As of 31 December 2013, our total asset value was Bt51.905 billion, a 6% increase from Bt49.138 billion in the same period last year. Net account receivables totaled Bt46.714 billion, up from Bt44.552 billion in the same period of 2012. Member base was 2.21 million accounts in total, comprising 1.57 million credit card accounts with Bt32.875 billion of outstanding balance. “KTC Cash” personal loan accounts rose to 638,959 with Bt13.597 billion of outstanding balance.”

“For the year 2013, our net profits reached Bt1.283 billion, a 403% increase from the same period in 2012, thanks to a 10% rise in total revenues to Bt13.868 billion from Bt12.622 billion in the previous year. Total interest income (inclusive of credit usage fee), fee income (exclusive of credit usage fee) and others were Bt8.296 billion, Bt3.645 billion and 1.926 billion respectively. The company’s total cost was Bt12.229 billion (exclusive of income tax), up 2% as a result of a 20% and 4% decrease in the total administrative and financial expenses to Bt5.274 billion and Bt1.865 billion respectively, thanks to less dependence on outsourcing services such as debt collection and technical support.”  

“Bad debts and doubtful accounts rose to Bt5.090 billion due to further expansion of portfolio size and the provision for risks caused by future economic uncertainties.”

“Available credit line for the period ending 31 December 2013 was Bt21.920 billion, comprising Bt18.03 billion provided by Krungthai Bank and Bt3.890 billion by other commercial banks. Debt-to-equity ratio was 7.5, down from 8.5 at the end of 2012, which is lower than the bond covenant at the maximum D/E ratio of 10 times.”

“As part of our long-term strategy, the company centers on driving growth with good corporate governance in conjunction with maximizing customer satisfaction as well as building good and sustainable relationship with business partners and cardholders. This is to secure the first position in the credit card market in five years. Riding on a new tagline, “Make It Better”, this year we will deliver better services and generate comprehensive value to stakeholders, including cardholders, shareholders, staffs, business partners and the entire society, in all aspects. We expect to achieve the goal by focusing on increasing the company’s earnings, and launching more proactive marketing campaigns to encourage continued growth in spending per card instead of issuing more cards. Creating Value of products and services, maximize cost management efficiency, and commitment to employees are also on agenda in addition to become a learning organization and engaging all stakeholders in the company’s operations and development.”

The company’s key activities for 2014 include:

    Expand credit cardholder base, both among new target customers and existing cardholders, by launching more customized, irresistible offers that are matched with different customer lifestyles, ages and incomes;
    Conduct cardholder behavioral analysis to benefit the company’s development of new products and marketing campaigns to meet the needs of 1) working professionals aged 20-29, 2) people aged 30-49 who already pursuing career advancement and occupational security, and 3) people aged 50 or more who are looking for security in life;
    For the personal loan segment, focus on repayment options and incentives for cardholders, especially “KTC Cash Revolve” customers, in addition to innovative campaigns designed to boost customers’ cash flow, establish a good repayment habit and ease their financial burden;
    Rely on risk management with carefulness and prudence by identifying terms and conditions concerning NPL in accordance with the criteria specified by Bank of Thailand;
    Collaborate with Krungthai Bank to develop joint marketing campaigns that combines KTC’s innovation and marketing strengths with the financial strength of Krungthai Bank through nationwide network and customer base of both parties;
    Further develop online services to facilitate and provide cardholders and merchants with greater convenience through mobile applications, the Internet, social media and other innovative online media;
    Strengthen business operations with unconventional tools such as CRM (Customer Relationship Management) and TBR (Total Business Relationship).  

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This year in Thailand-what next?

AseanAffairs   04 January 2011
By David Swartzentruber      

It is commonplace in journalism to write two types of articles at the transition point between the year that has passed and the New Year. As this writer qualifies as an “old hand” in observing Thailand with a track record dating back 14 years, it is time take a shot at what may unfold in Thailand in 2011.

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