KTC achieves an astounding new record of achieving new-highs 6 years in a row; net profit rose 56 percent, amounting to 5.140 billion Baht as projected. Total credit card spendings growth grew as much as that of the industry average. Member base and net accounts receivable rose, while total NPL dropped at its lowest of 1.1 percent. The firm’s 2019 strategy strives to advance to conduct business with consistent growth and stability, and to manage cost of capital to its best advantage. Aims to venture into the Nano - Pico Finance as the new income base S-curve, coupled with intensifying its main businesses practices—credit cards and personal loans, with innovation in Cashless Society services, and pushing its branding direction to support members to be confident in choosing the lives they desire.

Mr. Rathian Srimongkol, President & Chief Executive Officer, “KTC” or Krungthai Card Public Company Limited, states, “The firm’s overall achievements remain at a satisfactory level this year. This includes the expansion of interest income and a satisfactory level of membership base growth, while overall expenses dropped due to a reduction of bad debt and doubtful accounts. Moreover, the management of high quality receivables is one of our long-standing high priorities; we aim to control the NPL level by gradually decreasing it, and at a level that is well below the industry’s. These factors contributed to our achieved success in net profit value as previously projected. The firm’s 2019 goals include generating income and maintaining a NPL level at 1.1 percent, the same level as 2018, a growth of 10 percent in port of receivables, and an overall credit card spending of 15 percent.”

In 2018, KTC credit card receivables market share is 12.2 percent, similar to 2017’s market share of 12.3 percent. Its credit card spending market share is 11.2 percent, and KTC personal loans receivables market share is 7 percent, both the same levels as last year’s.

“As of December 31, 2018, KTC has a net profit of 5.140 billion Baht, a 56 percent spike compared to the same period in the previous year. Total credit card spendings of the entire year totaled at 193.101 billion Baht, a 9.2 growth, while the industry experienced a growth of 10 percent. Merchant transactions totaled at Bt. 85.732 billion, a 10.1 percent growth. Merchant memberships was 36,837, a 12.1 percent growth from joint merchant expansion, the implementation of new EDC machines, and the increased alliance network of new and varied payment methods, including KTC QR Pay, Fitbit Pay, Garmin Pay and Samsung Pay, to support and enhance members’ payment experience that does not only stick solely with card swiping.”

“KTC has a total asset value of 79.648 billion Baht, a 8 percent increase compared to the same period in 2018 of 73.636 billion Baht. Total port of account receivables totaled 78.202 billion Baht, member database numbered 3.3 million, a 10.5 percent increase compared to the same period in the previous year, comprising of 2,387,659 credit cards. Total credit card receivables totaled 51.062 billion Baht and personal loans numbered

951,882 accounts. Personal loans receivables totaled 26.821 billion Baht, NPL dropped to 1.1 percent, compared to the same period in the previous year of 1.3 percent. NPL for credit

cards decreased from 1.1 percent to 1.0 percent, and NPL for the personal loans business remains the same level at 0.76 percent.

KTC’s total revenue of 2018 amounted to Bt. 21.198 billion, a 9 percent increase, compared the same period last year, due to of interest revenue (including credit limit usage fees), transaction fees and bad debt recovery revenue. Net interest margin totaled at 15.10 percent, a drop from last year’s value of 15.13 percent. Operating cost to income ratio totaled at 26.6 percent, having decreased from 27.6 percent of last year. Similarly, cost to income ratio totaled at 35.5 percent, having decreased from 36.6 percent of last year. Available credit line totaled Bt. 24.450 billion, comprising of Bt. 18.030 billion Krungthai Bank credit lines, and Bt. 6.420 billion from other commercial banks. To this end, the firm’s debt to shareholder equity is 3.87, lower than the 10 times debt to equity ratio indicated in the bond covenant.

“In terms of 2019 economic outlook, the Thai economy have a likelihood of a decelerate growth, while influencing factors from consumer spending have a tendency to grow at a good rate. Government and private investments should adjust positively, respectively. However, economic and world finance pressure factors with risks still exist, and may cause fluctuation and expansion to the Thai economy. Along with this, the increase in competition in consumer finance that targets consumers through a variety of new venture practitioners, governmental regulations, and the proliferation of new finance technological innovations, cause KTC to have to adjust many of its strategies to strengthen business, be able to face a variety of challenges, and achieve stable operations. Our priorities in 2019 that must be achieved include pushing the growth of income bases by establishing a new business model centered around Nano and Pico Finance, along with differentiating credit cards and personal loans, the firm’s main businesses practices, as the brand that is ingrained on members’ hearts. Lastly, the development of information technology systems that are innovative and service-focused that cater to members’ transactional needs that are not only convenient and flexible, but also safe in support of a Cashless Society, the nation’s strategy.”