Frequestly Asked
Questions

KTC operates in retail consumer finance business including unsecured loan which are credit card and personal loan business. As of Y2025, 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 of 2025, the Group maintains a solid capital structure with a well diversified funding base. Total borrowings amounted to THB 57,140 million, including lease liabilities. The funding mix is weighed toward long term borrowings, which account for 52 percent, while short term borrowings, comprising loans and debentures maturing within one year, represent 48 percent. KTC’s funding sources are drawn from a wide range of counterparties, spanning Thai commercial banks, securities firms, insurance companies, and investment funds. These comprise short-term borrowings from Krungthai Bank and related parties of THB 4,100 million; short-term borrowings from other financial institutions of THB 7,200 million; long-term borrowings from Krungthai Bank of THB 10,000 million; and debentures totaling THB 35,612 million. Debentures account for approximately 62% of total borrowings, underscoring strong investor confidence and the Company’s proven access to the domestic debt capital market.

Apart from capital structure management, the Group continues to uphold strong financial discipline. This is reflected in the debt-to-equity ratio (D/E) at year-end 2025, which declined to 1.51 times, relatively low compared with 1.78 times in the same period last year. The improvement was driven by two key factors: (1) robust profit accumulation, which strengthened shareholders’ equity, and (2) a reduction in borrowings, in line with the prudent expansion of the loan portfolio amid a slowing economic environment. As a result, the Company had no need to raise additional debt to support new lending. The current D/E ratio remains significantly below the covenant threshold of 10 times, highlighting the Group’s high level of financial flexibility to support future business expansion and withstand potential economic volatility.

Liquidity: As of year end 2025, the Group had short-term available credit line of THB 20,470 million. Over the same period, debentures and long term borrowings maturing in 2026 amounted to THB 15,830 million. Available liquidity therefore exceeds near term debt obligations, reflecting a strong liquidity position and a very low risk of short term refinancing or default.

According to data from the Bank of Thailand for 2025, the total industry’s credit card receivables stood at THB 499,255 million, representing a contraction of 4.5% (YoY). Conversely, the industry’s personal loan receivables reached THB 859,719 million, showing a growth of 0.2% (YoY). Total credit card spending across the industry amounted to THB 2,225,136 million, a slight decline of 0.2% (YoY). On the other hand, KTC’s credit card spending reached THB 302,527 million, achieving a growth of 3.6% (YoY).

Despite the contraction in the overall consumer lending industry, driven by economic uncertainty and more cautious consumer spending, KTC continued to gain market share across all core products for 2025 compared to last year, as follows:

- Credit card receivables: market share increased to 14.8% from 14.1%

- Credit card spending: market share increased to 13.6% from 13.1%

- Personal loan receivables: market share increased to 4.2% from 4.1%

As of year-end 2025, KTC had a total of 3,673,244 accounts, comprising 2,964,426 credit cards, up 5.9% (YoY), and 708,818 personal loan accounts, up 2.9% (YoY).

The company pays good attention on every step of the operation. We are very selective on approval process and performs 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. Bad debt recoveries in 2025 amounted to THB 4,038 million, declining slightly by 1.7% (YoY). This performance reflects the Group’s continued effectiveness in debt collection amid a challenging economic environment.

The Group continues to prioritize disciplined portfolio management to maintain strong asset quality. In 2025, the Group’s non performing loan ratio (%NPL) declined to 1.79%, from 1.95% in 2024. On a company only basis, the NPL ratio remained at a low level of 1.57%, improving from 1.64% in the prior year. This reflects stringent credit and collection practices, which have driven a sustained improvement in asset quality.

The Group maintains a prudent provisioning policy to reinforce confidence in its financial resilience. In 2025, the Group’s NPL coverage ratio increased to 425.0%, from 369.3% in the previous year. On a company only basis, the ratio rose to 454.4%, from 413.3% a year earlier.

Credit cost for the Group in 2025 stood at 5.3%, declining from 6.1% in 2024. On a company only basis, credit cost decreased to 5.2%, from 5.9% in the prior year, underscore the effectiveness of the Group’s asset quality management.

In Y2025, expected credit losses totaled THB 5,906 million, declining by 12.7% (YoY). This underscores the Group’s strong portfolio management capabilities and effective credit risk management.

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 – 2025.

KTC has integrated sustainability across economic, social, and environmental dimensions into its business operations, with a commitment to conducting business responsibly, fairly, and transparently. The Company focuses on advancing innovation and digital technology to develop products and services that meet customer needs and create value for all stakeholders, with the objective of guiding both the organization and Thailand toward sustainable growth. The Company’s sustainability strategy and operating framework are summarized as follows:

Governance Excellence
KTC elevates corporate governance standards to ensure transparency, accountability, and adherence to business ethics. The Company strengthens its risk management and data management systems to support operations and high-quality reporting, thereby building trust and confidence among all stakeholders.

Green Growth
The Company pursues business growth alongside environmental stewardship through initiatives to reduce greenhouse gas emissions, enhance resource efficiency, and promote environmentally responsible behavior across the organization and its supply chain. These efforts are embedded in KTC’s products and services and aligned with national policies aimed at advancing a low carbon economy and achieving net zero greenhouse gas emissions by 2050.

Responsible & Inclusive Finance
KTC develops and delivers financial products and services that enhance the quality of life for customers across all segments, enabling fair and equitable access to financial services. The Company also promotes financial literacy to improve social well-being, while strengthening workforce capabilities as a key driver of sustainable growth. In parallel, KTC supports respect for human rights at both the organizational and societal levels.

Digital SD Innovation
The organization is driven by digital technology and innovation to develop value-creating products and services that respond to customer needs. These efforts are accompanied by a strong emphasis on data security and privacy for customers and stakeholders, reinforcing the Company’s long-term competitiveness in the digital era.

Culture Transformation
KTC fosters an organizational culture anchored in a sustainability mindset, embedded across all levels and processes. This is achieved through the integration of sustainability objectives and key performance indicators at both corporate and business unit levels, together with continuous learning and active employee engagement, ensuring that sustainability becomes an integral part of KTC’s business practices.
KTC supports the United Nations Sustainable Development Goals (SDGs). Further details can be found at: https://www.ktc.co.th/sustainability-development

➢ Target & Growth Direction

For 2026, KTC will focus on strengthening the existing loan portfolio, sustaining growth in card spending, and increasing investment in digital technology through the rollout of the Company’s new core system. This transformation will enhance operational flexibility, elevate customer experience, and improve overall efficiency. KTC will continue to support the growth of its two core businesses, credit cards and personal loans, while extending into a new business segment, insurance brokerage, to broaden and build sustainable revenue streams. The Company places strong emphasis on comprehensive risk management, leveraging data and advanced analytics to maintain portfolio quality, with a primary focus on preserving asset quality and long-term financial stability.

➢ Sustainable Household Debt Solution Approach and Potential Impacts

KTC continues to implement long-term debt relief measures in line with the Bank of Thailand’s (BOT) Notification No.3/2025 on Responsible Lending, which aims to strengthen the role of lenders in responsibly supporting customers throughout the debt cycle. KTC considers each borrower’s repayment capacity carefully to ensure that repayment terms remain appropriate and do not impose an excessive debt burden. Examples of these assistance measures include converting credit card debt into long-term personal loans, providing interest credit refunds, extending repayment periods, and reducing installment amounts, among others. Further details on KTC’s debt relief programs are available at:

KTC continues to implement long term debt relief measures in line with the Bank of Thailand’s Notification No. 3/2025 on Responsible Lending. These guidelines are designed to strengthen the role of financial service providers in supporting customers responsibly throughout the entire debt lifecycle. KTC assesses each customer’s credit application based on individual repayment capacity, ensuring that new credit does not impose an excessive additional burden beyond existing obligations. Key assistance measures include reductions in minimum payment requirements, the conversion of credit card balances into long term personal loans, interest rebates credited back to customers’ card accounts, targeted support for customers classified as Severe Persistent Debt, extensions of repayments, and installment reductions.

As a non-bank financial institution within the Krungthai Bank Group, KTC has actively cooperated with the Bank of Thailand by participating in both Phase 1 and Phase 2 of the “You Fight, We Help” program. The initiative aims to support vulnerable debtors in restoring their repayment capacity and ultimately settling their obligations once income recovers. Registration for the program closed on September 30, 2025. Moreover, in situations where customers are affected by natural disasters, such as flooding in southern Thailand, KTC implements relief measures, including reductions in minimum payment requirements and installment amounts. Affected customers may apply for these measures to ease their financial burden and facilitate a faster recovery.

In addition, the Company has joined the “Clear Debt, Move Forward” program, under which KTC will transfer and sell unsecured non-performing retail loans overdue for more than 90 days (NPL), based on borrower’s status as of September 30, 2025. Eligible debtors are those with total NPL exposure across all financial service providers and all loan types not exceeding THB 100,000 per person. These receivables will be transferred to Sukhumvit Asset Management Company Limited (SAM) for debt restructuring under more accommodative terms and for the reduction of borrowers’ debt burdens. Registration for the program will be available through channels of the Bank of Thailand starting January 5, 2026.

The Company assesses that participation in these programs, as well as the aforementioned debtor assistance measures, will not have a material impact on the Group’s overall operating performance. In this regard, the Company has already established adequate allowances for doubtful accounts.

Further details on these measures are available on the Company’s website https://www.ktc.co.th/about/news/measure