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 which includes personal loan business under supervision and auto title loan. 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 and auto title loan. As of 1Q2025, 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

At the end of 1Q2025, the Group's total borrowings amounted to Baht 56,461 million (including lease liabilities), with the capital structure divided into short-term borrowings (including loans and debentures maturing within one year) at 32%, and long-term borrowings at 68%. KTC has diversified sources of borrowings from various institutions, including Thai commercial banks, securities companies, insurance companies, and funds. This includes short-term loans from Krungthai Bank and related companies amounting to Baht 1,790 million, other financial institutions totaling Baht 4,500 million, long-term borrowing from Krungthai Bank totaling Baht 9,500 million, and debentures amounting to Baht 40,297 million.

The debt-to-equity ratio stands at 1.58 times, down from 1.83 times at the end of 1Q2024, and remains below the covenant level (Debt Covenants), which is set at 10 times.

Additionally, the Group has a total short-term credit line from financial institutions amounting to Baht 29,755 million (including the credit line from Krungthai Bank of Baht 18,045 million). The Group has utilized Baht 6,260 million of the short-term credit line, leaving a balance of Baht 23,495 million. Furthermore, there is an outstanding long-term loan balance from Krungthai Bank of Baht 2,000 million. The Group also has debentures and long-term loans maturing in the remainder of 2025, amounting to Baht 11,000 million.

The growth of the consumer finance industry has contracted, partly due to household income that has not fully recovered and high debt burdens. At the end of 1Q2025, total credit card receivables in the industry amounted to Baht 460,243 million, a decrease of 2.7% (YoY). Credit card spending in 1Q2025 declined slightly by 0.7% (YoY). Meanwhile, personal loan receivables (excluding auto title loans) totaled Baht 472,937 million, down 5.8% (YoY). However, auto title loans grew by 7.5% (YoY), reaching Baht 376,094 million.

KTC's market share for 1Q2025 increased across all dimensions compared to 1Q2024. This includes credit card receivables, which increased to 15.3% from 14.6%; credit card spending volume, which rose to 13.4% from 12.5%; and personal loan receivables (excluding auto title loans), which increased to 6.7% from 6.1%.

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 1Q25, Bad debt recovery amounted to Baht 997 million, representing an decrease of 4.2% (YoY).

The ratio of non-performing loans (NPL) to total loans for the Group (%NPL) in 1Q2025 was 1.97%, slightly higher than 1.95% at the end of 2024, due to a decline in the debt quality of lease receivables. The %NPL of credit card receivables, personal loan receivables, and lease receivables were at 1.21%, 2.35%, and 22.94%, respectively. The allowance for expected credit losses stood at Baht 8,071 million, an increase of 9.1% (YoY), driven by higher provisions in line with the expansion of the loan portfolio. The NPL Coverage Ratio remained strong at 384.5%, up from 369.3% at the end of 2024 and 353.8% at the end of 1Q2024.

For the separate financial statements, the total %NPL at the end of 1Q2025 stood at 1.58%, down from 1.64% at the end of 2024. The allowance for expected credit losses was 7,421 million baht, representing an NPL Coverage Ratio of 449.5%, an increase from 413.3% at the end of 2024 and 434.7% at the end of 1Q2024.

Additionally, the Group has sufficient allowances for expected credit losses to absorb potential economic fluctuations and uncertainties that may arise in the future. The credit cost for the Group and the separate financial statements in 1Q2025 compared with the same quarter last year decreased to 6.0% and 5.7%, respectively.

In 1Q25, expected credit losses amounted to Baht 1,594 million, reflecting a 5.3% (YoY) decrease due to reduced bad debt write-offs. The Company has sufficient allowances for expected credit losses to absorb potential economic fluctuations and uncertainties that may arise in the future.

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's strategy integrates sustainability concepts into responsible business operations, while continuously developing the organization to meet the needs of stakeholders. This also strengthens the financial sector and drives Thailand's sustainable growth. The Company's sustainability strategy details are as follows:

Economic Dimension (Better Products and Services)
KTC conducts business with transparency and fairness according to good corporate governance principles, based on responsible business operations and appropriate risk management. The Company emphasizes using technology, digital innovation, and artificial intelligence (AI) to efficiently develop products and services, while maintaining security and considering privacy. KTC also offers a variety of benefits to create satisfaction and positive experiences for its members.

Social Dimension (Better Quality of Life)
KTC develops diverse financial products and services to provide choices for customers, allowing them to select company products and services that appropriately match their needs and increase opportunities for inclusive and equal access to financial services. Additionally, KTC participates in promoting financial literacy to support and elevate the quality of life for Thai people, while developing personnel within the organization to enhance potential and work efficiency, as well as supporting respect for human rights in society.

Environmental Dimension (Better Climate)
KTC conducts business while being environmentally conscious, promoting the transition to a low-carbon society through business operations and developing of environmentally friendly financial products and services.

KTC supports the United Nations' Sustainable Development Goals, and more details can be found on the website: https://www.ktc.co.th/en/sustainability-development

➢ Target & Growth Direction

➢ Sustainable Household Debt Solution Approach and Potential Impacts

KTC has implemented long-term debt relief measures, which follow the Bank of Thailand's Notification No. 3/2568 regarding Responsible Lending, dated 10 February 2025. The objective is to strengthen service providers' role in appropriately taking responsibility for customers throughout the debt cycle. The Company has considered debtors' ability to repay and avoid unreasonably increasing their debt burden beyond their existing obligations. These measures include converting credit card debt to long-term personal loans, extending repayment periods, reducing installment amounts, etc. Details about these debt relief measures can be found at the link: https://www.ktc.co.th/about/news/measure

KTC is a financial business group of Krungthai Bank Public Company Limited, collaborating with the Bank of Thailand on the debt relief initiative under the project ‘Khun Soo, Rao Chuay’ (‘You Fight, We Help’). Members can register via https://www.ktc.co.th/en/khunsoo from 12 December 2024 to 30 April 2025.

Additionally, due to the earthquake in late March 2025, KTC has implemented continuous debt relief measures for customers affected by the disaster. Customers affected by the quake can register to participate in the relief program through the following link: https://www.ktc.co.th/en/about/news/earthquake-aid-measures

KTC believes that the debt relief measures outlined above will not have a significant impact on the overall performance of the Group.