KTC reports its 9-month business operation results, reporting a 15.4 percent net profit growth or 4,631 million baht, and a 7.9 percent growth or 1,317 million baht in Q3. The Firm acknowledges that the COVID-19 situation has affected its revenue, however; the Firmwas able to lower its overall expenses and continuouslymanage its portfolio. KTC is ready to go all out with marketing activities for all of its financial products after the government haseased lockdown measures. To boot, the Firm hasextendeditsassistance to help retail debtorsin accordance with The Bank of Thailand’s measures.

Mr. Rathian  Srimongkol, President & Chief Executive Officer, “KTC”orKrungthai Card Public Company Limited,states, “Although the Thai economy overall continues to be affected by the spread of COVID-19, it is likely that the situation will lift after the government eases its travel measures and restrictions in high controlled areas per the reopening announcement on this upcoming November 1st. This will likely lead to a positive change in card spending and portfolio growth that will revert back to a positive trend. On our side, KTC has developed and is equipped to present quality financial services and products to KTC cardmembers and new target customers to benefit from value, convenience, and enjoy great experience on all spendings at full swing.”

“In the past 8 months, KTC’s credit card receivables market share totaled 13.5 percent. The level of credit card spending decreased by -1.5 percent (compared to the industry drop of -2.1 percent) and the market share of personal loan receivables was 4.3 percent.”

“Regarding the Company’s performance period end date of September 30, 2021, compared to the same period in 2020, KTC has aprofit attributable to the Company of 4,631 million baht in the first 9 months,a growth of 15.4 percent, and anet profit of 1,317 million baht for Q3/2021,a growth of 7.9 percent. Although the Firm saw a decrease in total revenue by -3.4 percent, or 15,930 million baht, it managed to reduce the total expenses by -12.0 percent at 10,097 million baht. This was achieved by decreasing financial costs by -7.5 percent and expected credit losses by -28.9 percent. Moreover,bad debt recovery grew5.9 percent. Furthermore, KTC consistently upkeeps its high-quality port of, which further helped eliminate the need to set an allowance for expected credit losses. All of these factors led the Company’s net profit to grow in the proportion set forth above.”

“Overall, the portfolio grew, and the quality improved as a result of a decrease in the number of non-performing loans.Total loans to customers and accrued interest receivables totalled 87,030 million baht (a 3.2 percent growth) compared to last year.Total memberbase numbered 3,306,580,comprising2,522,945 credit cards. Total loans to credit card debtors and accrued interest receivables are at 54,521 million baht. The total credit card spending during 9 months was 137,705 million baht, a decrease of -1.6 percent corresponding to the economic situation. In the third quarter,NPL to total loans totalled 3.8 percent,a reduction compared to Q2/2021 of 4.4 percent. The NPL to credit card receivables in Q3/2021 is 1.5 percent, the same level as Q2/2021.KTC’s port of personal loans numbered 783,635 accounts. Loans to personal loans debtors and total accrued interest receivables amounted to 29,203 million baht, and NPL to personal loans receivables totalled 3.2 percent, higher than Q2/2021 which was 3.0 percent.The lease receivables under KTBLis valued at 3,306 million baht, and the NPL to lease receivable is 41.6 percent, a drop from Q2/2021 which was 51.7 percent. KTC paid the purchase price of the issuance of ordinary shares of KTB Leasing Company Limited (KTBL) in the proportion of 50 percent with 297.2 million baht cash on May 21, 2021, and will pay the remaining after the examination of the conditions is completed by November 2021. The total value may be adjusted lower or higher in accordance with the settlement conditions.”

“The Firm has an available credit line of 21,250 million baht, while financial costs for the 9-month period are at 2.64 percent, debt to equity ratio is at 2.21time, which was lower than the covenant of 10 times.”

“Regarding the business direction in the last quarter of this year, in addition to the selection of products, services, and marketing activities to meet the diverse needs of each customer groups, KTC will remain focused on quality debtor portfolio management in every business throughout the pipeline. This will start from the very beginning of screening, maintenance, to the management of the member base to offer effective financial tools to members of all groups in every rhythm of life. Even when members are suffering from various situations, such as the COVID-19 crisis, the Company has complied with all measures to provide support to debtors of the Bank of Thailand, including helping debtors that participated in the assistance measure to convert credit card debt and personal loans to long-term personal loans. The value of receivables as of September 30, 2021, is equal to 1,825 million baht from a total of 26,174 accounts. KTC also extended its measure to reduce the KTC credit card minimum repayment rate automatically from 10 percent to 5 percent for cards with a summary of the accounting period between March 26, 2020, to December 31, 2022, and to 8 percent for cards with a summary of the accounting period between January 1, 2023, to December 31, 2023, and a rate of 10 percent for cards with a summary of the accounting period from January 1, 2024 onwards. Cardmembers are not required to individually put forth a request for this service.”