KTC announces Q1 2019 achievements with a net profit of Bt. 1.589 billion, a growth of 31 percent. Overall business is operating as expected. The firm is moving forward by constantly adjusting its marketing plan to handle changing competition in order to achieve its credit card spending goal. Developing its entire online system to cater to members’ needs and increase chances for new business practices to encourage constant growth along with a sustainable society.

Mr. Rathian Srimongkol, President & Chief Executive Officer, “KTC” or Krungthai Card Public Company Limited, states, “Overall, the consumer credit industry experienced fierce competition as more and more commercial banks enter the personal loans market on a retail loans basis. As a result, companies operating within this business have to adjust to changes. In the first quarter, the consumer credit industry continues to grow progressively compared to the same period last year.”

“For Q1 2019, KTC have been constantly adjusting its marketing plan to keep in pace with the ever-changing competition. This was achieved with satisfactory expansion in card membership base and maintained quality debt which remains at the same level as last year. The firm earned more from interest and fees and is always making adjustments to its business process. This did not result in a large increase of operation expenses. Overall, there is good quality of port of receivables as well as decreases in allowance and loan loss provisions. These factors led to outstanding net profit which grew by 31 percent at Bt. 1.589 billion. The firm’s overall non-performing loans (NPL) totaled at 1.18 percent. Q1 profits grew as a result of expansions in the new cardholder member base for Premium members and by maintaining mid-level Mass members. To boot, the firm launched marketing programs and strategized its online media to appeal to members in order to stimulate card spendings and to create great customer experience.”

“As of March 31, 2019, the firm has a total asset value of Bt. 76.174 billion, a 9 percent increase compared to the same period in the previous year. The asset that generates the most income for the firm is in the form of net trade receivables which comprise 92 percent of total assets. Port of ending net account receivables with allowance for doubtful accounts totaled at Bt. 75.209 billion, a 7 percent increase from the same period in the last year. Total member accounts numbered 3.3 million or an 8.2 percent increase, comprising of 2,348,990 credit cards, a 6.4 percent surge. Total credit card receivables totaled Bt. 48.413 billion. Ratio of credit card debtors compared to the current industry value was at 12.5 percent, having grown from the end of last year which was at 12.2 percent. KTC credit card spendings totaled Bt. 49,091 million, a 10.4 percent growth (8.6 percent in the industry). Credit card spending market share was 11.2 percent remain at the same level from the end of 2018 which was also at 11.2 percent. NPL for credit cards valued 1.04 percent, a drop from 1.14 percent (2.02 percent in the industry).”

“Port of KTC personal loans numbered 967,059 accounts, a 12.8 percent spike, while NPL for personal loans is set at Bt. 26.483 billion. The ratio of KTC personal loans receivables compared to the industry totaled 5.4 percent which was incomparable to that of the past due to the inclusion of auto title deed receivables into the industry’s figure.

Personal loans NPL was 0.78 percent, dropped from 0.82 percent (3.49 percent in the industry) while coverage ratios remained at a high value of 605 percent compared to the same period last year which was at 591 percent. Trading volume for merchants are valued at Bt. 22.282 billion, a growth of 6 percent, with a total of 37,787 merchant members, a 13 percent surge, owing to projects in aims of expanding online and Alipay merchants.”

“In Q1 of 2019, KTC has a net revenue growth rate that exceeds expenses. KTC generated an increase in income of 9 percent totaling Bt. 5.574 billion from interest (including profit gained from fees for using credit lines) from credit card and personal loans profit of 9 percent and 10 percent respectively totaling in Bt. 3.267 billion; profit of Bt. 1.235 billion from fees and Bt. 1.072 billion from other income with a ratio of 59 percent, 22 percent and 19 percent of net profit, respectively. Other income and fees are comprised 88 percent by bad recovered debt with the net expenses control (not inclusive of income tax) of Bt. 3.590 billion, a level similar to the same quarter of last year which was at Bt. 3.603 billion. Although there is growth in the portfolio, provisions decreased due to quality debtors. Capital financial expenses also decreased by 2 percent, as the firm launched new debentures at costs that are lower than that of the original average. KTC also maintained operating cost to income ratio at a previously low rate to an even lower one at 24.9 percent which used to be 27.2 percent in the same period last year.”

“The firm has available credit line of Bt. 26.730 billion, comprising of financial amounts of Bt. 15.720 billion for Krungthai Bank and Bt. 11.010 billion for other commercial banks. Financial costs of Q1 2019 totaled 2.91 percent, having decreased from the same quarter last year in 2018 which was valued at 3.02 percent. The firm’s debt to shareholder equity is 3.25, the ratio 10 times lower than the financial covenant.”

“For 2019, KTC has its eyes set on directing business operations mainly to customer needs. The firm will prioritize intensively presenting advantages of online business as much as using credit cards at merchants so that KTC members or target consumers will think and recognize KTC as a brand that is top of mind. Along with this, KTC will develop all functions in its online systems and the “KTC Mobile” application to reinforce beneficial, convenient services and to create good customer experiences to all relevant stakeholders. In the last half of 2019, KTC expects to create new business opportunities by means of Nano-Pico finance and personal loans with auto title deed. This will serve as crucial forces that will drive the business to achieving its target goal of constant and long-lasting growth as well as fostering a sustainable society.”