KTC leads the group of companies beating the economic crisis with Q1/2025 net profit of 1,861 million baht, total receivables portfolio expanded to 107,093 million baht with a well-controlled portfolio quality. Market shares for the first two months of 2025 were higher than the industry in all dimensions, including credit card receivables, credit card spending volume and personal loan receivables. KTC’s strategy is to expand total receivables portfolio along with control asset quality under the responsible lending framework.
Mrs. Pittaya Vorapanyasakul, President & Chief Executive Officer, “KTC” or Krungthai Card Public Company Limited, stated, “even though the consumer finance industry slowed down over the past 3 months as household income has not fully recovered together with high level of debt, KTC's market share over the past 2 months (January-February 2025) in all dimensions were higher than the industry from the same period in 2024. The credit card receivables rose from 14.6% to 15.3%, while credit card spending increased from 12.4% to 13.5% and the personal loan receivables (excluding car title loan) also expanded from 6.1% to 6.7%.”
“Although the Thai economy is weaker than projected, KTC still believes that its strategy of transforming into the digital technology era will help the Group to be more flexible to accommodate and adapt to the volatile and rapidly changing environment. In terms of marketing, KTC also believes that with a strategy focusing on building a credit card and personal loan member base, including screening the quality of the portfolio, KTC will be able to achieve its set target by the end of 2025 with continuous increased profit and projected growth of total receivables portfolio by 4-5%, Credit Card spending by 10%, “KTC PROUD” portfolio by 3%, “KTC P BERM Car for Cash” new receivables of 3,000 million baht and total NPL less than 2%”.
As of March 31, 2025,KTC and its subsidiaries net profit amounted to 1,861 million baht, reflecting a3.2% increase.The total membership base numbered 3,486,729 accounts. Total receivables portfolio amounted to 107,093 million baht, increased by 1.7%. The group’s NPL Ratio was at 1.97%. There were 2,796,551 cards in thecredit cardbusiness,and total loans to credit card customers and accrued interest receivables amounted to 70,283 million baht, rose by 1.5%. Credit card spending was 74,053 million baht, expanded by 6.7% and NPL Ratio for credit cards was at 1.21%. There were690,178 accounts in the KTC personal loan portfolio, with loans to personal loan customers and accrued interest receivables of 34,857 million baht, increased by 5.2%. The NPL Ratio for personal loan portfolio was at 2.35%. For lease receivables equaled to 1,953 million baht, KTC has ceased granting this type of loan since August 2023. KTC is currently focusing on debt collection and managing the quality of existing portfolios.
In Q1/2025, total revenue equaled to 6,832 million baht, increased by 1.0% (YoY) mainly from merchant discounts fee, cash advance fee and interchange fee. Meanwhile, interest income and bad debt recovery slightly decreased. Total expenses reduced by 1.6% (YoY), equaled to 4,433 million baht mainly from a decline of expected credit losses (ECL) and cost of fund. Total administrative expenses increased mainly from fees and services in response to transaction volume and marketing expenses. The cost-to-income ratio was 35.1%. The expected credit losses (ECL) totaled 1,594 million baht, decreased by 5.3% (YoY) mainly due to a reduction of write offs bad debts. Cost of fund amounted to 439 million baht, a 2.6% decrease (YoY) attributed to lower borrowings.
KTC Group possesses a robust capital structure with capability to support future growth with a high return on equity (ROE) at 18.3% and low debt-to-equity ratio (D/E Ratio) at 1.58 times, lower than the 1.83 times at the end of Q1/2024 which below the Debt Covenants threshold of 10 times. Furthermore, the Company is able to maintain stability in all stages of the business cycle as evidenced by the ability to generate profits, good portfolio quality and maintain its market shares. As such, Tris Rating Co., Ltd. has upgraded the Company rating and the rating on its outstanding senior unsecured debentures to “AA” from “AA-” on April 9, 2025. KTC has a remaining short-term loans credit line of 23,495 million baht and a remaining long-term loans credit line of 2,000 million baht from Krungthai Bank. The Group has debentures and long-term loans due in the remainder of 2025 totaling 11,000 million baht.
Mrs. Pittaya further stated, “KTC has implemented ongoing debt relief measures per the BOT’s announcement No. TorPorTor. 3/2568 regarding Responsible Lending (RL) dated February 10, 2025. The Company has considered each debtor’s repayment capability to ensure no unreasonable increase in their debt burden relative to their original obligations such as converting credit card debt into long-term personal loans, extending the debt settlement period, and reducing monthly repayment amount. For further details, please refer to the linkwww.ktc.co.th/about/news/measure”