Frequestly Asked Questions

Krungthai Card Public Company Limited operates a credit card business as its main business, including credit card related business, merchant acquiring business, payment service, as well as a personal loan business. In response to changes in technology and society, KTC established the subsidiaries and added the occupational retail lending business and e-money business to support the Company's business operations to create sustainable long-term returns.

KTC operates in retail consumer finance business including unsecured loan which are credit card and personal loan business. As of 1H2025, Total receivables are stated below.

The revenue structure of KTC consisted of interest income and fee income from two main businesses: credit card business and personal loan business, including leasing business. details shown in the chart below.

As at the end of 2Q2025, the Group maintained a solid capital structure with well-diversified funding sources. Total borrowings, including lease liabilities, amounted to THB 58,081 million. The majority of the funding comprised long-term borrowings, accounting for 59%, while the remaining 41% consisted of short-term borrowings, including loans and debentures due within one year. KTC draws its funding from a variety of institutions such as Thai commercial banks, securities companies, insurance firms, and mutual funds. Of the total borrowings, THB 2,860 million were short-term loans from Krungthai Bank and related parties, while THB 6,100 million came from other financial institutions. Long-term borrowings from Krungthai Bank totaled THB 9,500 million, and outstanding debentures amounted to THB 39,304 million. Debentures made up approximately 68% of total borrowings, reflecting investor confidence and the Company’s strong ability to access capital markets.

In addition to managing its capital structure, the Group continues to prioritize sound financial discipline. This is reflected in the debt-to-equity ratio (D/E ratio), which decreased to 1.64 times as at 2Q2025, down from 1.97 times in the same period of the previous year. This reduction is primarily attributable to two factors which are namely, first, the continued accumulation of strong profits, which helped enhance shareholders’ equity; and second, a gradual growth of the loan portfolio, in response to the economic slowdown, which reduced the need for additional borrowings to support new loan disbursements. The D/E ratio remains well below the covenant threshold of 10 times, demonstrating a high level of financial flexibility that enables the Company to support future business expansion or withstand economic volatility.

In terms of liquidity, as at the end of 2Q2025, the Group had a substantial amount of unutilized credit lines. These included THB 20,780 million in available short-term credit facilities and an additional THB 2,000 million in long-term credit lines from Krungthai Bank. Meanwhile, the Group has THB 10,000 million in long-term loans and debentures maturing in 2H25. With available liquidity exceeding upcoming debt obligations by 2.2 times, this reflects a strong liquidity position.

Amid these prevailing conditions, the overall consumer lending industry continues to slow down. This is reflected in the Consumer Confidence Index (CCI), which was at 52.7 in June 2025, dropped from 54.2 in May 2025, the lowest level in 28 months. (A CCI above 50 indicates positive consumer sentiment toward the economic outlook.) According to data from the Bank of Thailand, during 1H25: The credit card receivables for the industry totaled THB 457,560 million, declining 2.5% (YoY), Additionally, the personal loans receivables stood at THB 851,712 million, a slightly decline of 0.9% (YoY). However, credit card spending still grew 0.7% (YoY).

Despite the broader market contraction and decelerating growth, KTC continued to deliver strong performance and gained market share across all core product segments in 1H25 (compared to the same period last year), as follows:

• Credit card receivables: Market share increased to 15.3%, up from 14.7%
• Credit card spending: Market share rose to 13.2%, up from 12.7%
• Personal loan receivables: Market share expanded to 4.2%, up from 4.0%

The company pays good attention on every step of the operation. We are very selective on approval process and performs very well on debt collection. In addition, our management always pays close attention to the debt collection process. As a result, the company could perform well on debt collection and has good credit quality. In 2Q25, Bad debt recovery amounted to Baht 992 million, representing an decrease of 2.3% (YoY). This decrease does not reflect a deterioration in collection performance but rather results from a change in the Company's write-off policy, which now accelerates bad debt write-offs. The policy, implemented on January 1, 2024, led to a one-time increase in write-offs during the initial adoption period.

The Group effectively managed asset quality, as reflected in improved credit risk indicators and strengthened asset quality metrics. As at the end of 2Q2025, the consolidated non-performing loan (NPL) ratio declined to 1.83%, down from 1.97% in the same period last year, supported by disciplined debt management. Based on the Separate Financial Statements, the Company demonstrated stronger asset quality, with an NPL ratio of only 1.53%, improving from 1.68% in the prior year. This indicates that the Company’s core loan portfolios—credit cards and personal loans—maintains healthy credit quality.

On the provisioning front, the consolidated NPL coverage ratio increased significantly to 419.9%, compared to 363.3% in the previous year. For the Separate Financial Statements, the NPL coverage ratio rose to 470.5%. This high level of provisioning reflects the Company’s prudent and proactive approach to managing credit risks and provides a strong buffer against economic uncertainty, reinforcing the Company’s financial stability.

Credit cost also declined in line with improved portfolio quality. The consolidated credit cost for 2Q2025 decreased to 5.7% from 6.4%, and for 1H2025 downed to 5.8% from 6.4%, in the corresponding periods last year. On a Separate Financial Statements basis, credit cost for 2Q2025 decreased to 5.6%, compared to 6.3%, and for 1H2025 dropped to 5.7%, also from 6.3%. The decline in credit cost, together with the lower NPL ratio and higher NPL coverage, underscores the Company’s ability to manage credit quality effectively across its portfolios.

In 1H25, expected credit losses amounted to Baht 3,116 million, reflecting a 7.6% (YoY) decrease. This improvement reflects continued effectiveness in debt management and collection processes

The shareholders’ meeting no. 1/2003 on March 25, 2003, approved the dividend payment policy to pay approximately 40 percent of net profit after deduction of income tax and appropriation for a legal reserve since 2003 onward. The table below shows the dividend payment for the operating result during 2019 – 2024.

KTC has integrated sustainability into its core strategy, aligning it with responsible business practices and a commitment to continuous organizational development. The Company aims to serve the interests of all stakeholders and contribute to the resilience of Thailand’s financial sector, thereby supporting the country’s sustainable development. KTC’s sustainability strategy is structured around three key dimensions:

Economic Dimension (Better Products and Services)
KTC operates with transparency and fairness, in line with principles of good corporate governance. The Company emphasizes responsible business conduct and appropriate risk management, while leveraging technology, digital innovation, and artificial intelligence (AI) to enhance product and service efficiency. Alongside this, the Company ensures strong security and privacy standards and offers a wide range of member benefits to maximize satisfaction and deliver exceptional customer experience.

Social Dimension (Better Quality of Life)
KTC develops a broad range of financial products and services to provide customers with suitable options that align with their needs, thereby promoting inclusive and equitable access to financial services. The Company also plays an active role in advancing financial literacy to improve the quality of life for Thai people. Internally, KTC invests in employee development to enhance capabilities and operational efficiency, while also promoting respect for human rights in society.

Environmental Dimension (Better Climate)
KTC conducts its business with a focus on environmental responsibility, contributing to the transition toward a low-carbon society. The Company develops and delivers environmentally conscious financial products and services as part of its commitment to sustainability.

KTC supports the United Nations Sustainable Development Goals (SDGs). Further details can be found at: https://www.ktc.co.th/en/sustainability-development