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ASEAN PROFILES ASEAN KEY DESTINATIONS 
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KTC reports Q3 net profit of Bt308 million Strategic approach includes focus on expanding personal loans and credit card portfolios, encouraging cash flow and impressing customers with innovative marketing campaigns KTC pointed out that its overall credit card and personal loans units continued to grow despite ailing economy caused by different factors. It posted third quarter net profit of Bt308 million from customer base of 2.18 million accounts that generated total account receivables of Bt44.359 billion. The strong performance, again, was characterized by positive growth in the company’s personal loans business and enhanced control of loan portfolios. This effective prevention against unnecessary non-performing loans (NPLs) resulted in decrease in total NPLs when compared with that of the same period last year. The company was also satisfied with administrative expenses which expectedly remain unchanged. However, marketing expenses increased due to continuous launches of year-end promotional campaigns. Concentrating on expanding personal loans and credit card portfolios, as well as offering great value and truly innovative products that meet customer requirements , help accelerate portfolio performance. “KTC” or Krungthai Card Public Company Limited President and Chief Executive Officer Rathian Srimongkol said, “Overall of credit card and personal loans businesses grew impressively over the first nine months of this year despite slowing economy. The negative impact on the Thai economy centers around a marked decrease in investment in the private sector, a downward trend in household spending because of rising household debts and political uncertainties that potentially affect economic expansion. As a result, credit card industry swelled 14% while the personal loans gained 21% growth when compared with the same period last year.” “For KTC, we have committed to introducing innovative marketing campaigns meticulously created using multidimensional market intelligence. This is expected to boost our business growth and provide members with great value when spending with KTC credit cards, and promote cash flow among customers using our personal loans products. This strategic move has received a very positive feedback from our customers, resulting in a significant increase in loan portfolios and steady improvements in corporate revenues. Additionally, we have successfully adjusted our pre-delinquency management to rapidly reduce bad debt to improve the quality of our loan portfolios. Total NPLs in third quarter declined to 3.9% from the previous year. Control of administrative and financial expenses was also noticeably improved from the same period last year, thereby helping us to more than double our quarterly profits.” “Our third quarter net profits reached Bt308 million, a 134% increase from the same period in 2012, thanks to a 10% rise in total revenues to Bt3.423 billion from Bt3.117 billion in the previous year. Total interest income (including credit usage fee) and fee income (excluding credit usage fee) was Bt2.125 billion and Bt893 million respectively. Bad debts and doubtful accounts grew as a result of the portfolio growth. However, administrative and financial expenses dropped to Bt1.374 billion and Bt472 million respectively.” “As of 30 September 2013, our total asset value was Bt48.233 billion, up from Bt46.043 billion in the same period last year. Net account receivables totaled Bt44.359 billion, up from Bt41.661 billion in the same period of 2012. Member base was 2.18 million accounts in total, comprising of 1,550,887 credit card accounts with Bt30.708 billion of outstanding balance. KTC CASH personal loans accounts reached 629,703 with Bt13.4 billion of outstanding balance.” “Cost-to-income ratio in the third quarter of 2013 was 40.2%, dropped from 55.7% in the same period last year while slightly increased from 36.8% in the previous quarter. Largely influenced by rising marketing costs relevant to promotional campaigns, total operating costs rose 11% from the last quarter.” “Net interest margin in the third quarter increased to 14.2%, up from 13.2% at the end of 2012, due to the ability to maintain the cost of capital nearly at the same level. Available credit line at the end of the third quarter was Bt26.240 billion, with Bt18.03 billion provided by Krungthai Bank and Bt8.210 billion by other commercial banks. Debt-to-equity ratio was 7.2, down from 8.5 at the end of 2012, and lower than the bond covenant at the maximum D/E ratio of 10 times.” “We have designed a strategy to cheer up our credit card and personal loans businesses during the year-end period in which consumers are most likely to spend. For the credit card segment, we have launched many great-value marketing campaigns to satisfy all segment of our card members. Irresistible benefits are offered through our Forever Rewards that allows them to earn rewards points easily without maximum limit and expiry date. Members can also enjoy the rewards of their Forever Rewards through redemption channels nationwide. For the personal loans segment, we focus on introducing innovative campaigns with inventive offers that increase cash flow for card members and make them more financially comfortable amidst the economic slowdown. We have constantly introduced debt clearance plans to reward card members who open personal loans accounts with KTC and have a good previous loans repayment history.” “On top of that, we attach a lot of importance to streamlining our enterprise-wide operational efficiency, especially in areas of debt collection and risk management to achieve lower operational costs. This is expected to help drive the company’s net profit for 2013 and the overall growth as planned,” said Rathian.
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