Mr. Rathian Srimongkol, President & Chief Executive Officer, “KTC” or Krungthai Card Public Company Limited, disclosed that “The overview of consumer finance business over the past quarter is still growing well even the economic condition is not on its track as expected. However, in the forthcoming 9 months, we are still confident that consumers’ spending will budge consequently as a result of the measure which the state and private sectors have joined hands on the economic drive.”
“In the first 3 months, KTC’s credit card spending growth is 11% up from the existing industrial growth rate of 8% or in the total amount of 3,705 Million Baht, an increase of 10% from the same period of 2014. The Operating Cost to Income Ratio is equal to 28.8%, a slight increase from 27.3%, thus, resulting in the company to be able to make a net profit of up to 574 million Baht, an increase of 62%. Total NPL is equal to the end of 2014.”
“The company has net assets of 52,548 Million Baht, an increase of 7% from the same period of the previous year. The asset generating the main revenue for the company is in the form of the net account receivable which is 93% of the total assets. The total net account receivable port, after allowance for doubtful account deduction is made, is equal to 48,612 Million Baht, an increase of 8% from the same quarter of the prior year. Member base totals are 2.5 million accounts, a growth of 11%, divided into 1,846,787 credit cards (13% growth); total net credit card account receivable of 33,373 million Baht; personal loans of 702,081 accounts (8% growth), total net personal loans account receivable of 15,042 Million Baht; total NPL at 2.4% resulting in the credit card NPL to be reduced to 1.6% down from 2.2% and personal loans NPL reduced to 1.1% only, down from 1.4% when comparing with the same period of the previous year while bad debt recovered in the first quarter is valued at 479 Million Baht, an increase of 16% up from the same period of the previous year.”
“KTC aims to be an everyday card spending with the offers and special privileges in the form of a discount, installment payment, the use of accumulated points, useful knowledge sharing to consumers in Bangkok and the upcountry in several categories including gas & auto, dining, department stores, discount stores, supermarkets, sports, mobile phone, information technology (IT), travel and leisure.”
“KTC now has an available credit line of 24,960 Million Baht, being 18,030 Million Baht from Krungthai Bank and 6,930 Million Baht from other commercial banks. The ratio of debt to shareholders’ equity is 5.62 which is lower than our obligation of 10.”
“For the year 2015, the company sets the target on the creation of the revenue and profit growth of approximately 10-15% by having a continuous plan on business expansions up-country to major cities which are the economic areas in connection with neighboring countries in order to gradually increase credit card member base and personal loans in the provincial areas. Marketing activities in all groups of business will be emphasized focally aimed to make KTC the principal credit cards for spending. KTC will increase more revenue through marketing campaigns from the products and supplementary services; such as, the insurance plan, U Shop V Deliver service, Forever Rewards points for special interest rate for KTC PROUD members; developing online service; and creating new member base from the diversified member acquisition channels.”
“Moreover, the company has still placed the emphasis on debt quality control to be at a suitable level by hiring outsource to handle work on debt demands and collections from May 2015, in order to improve the performance in compatibility with the procedural guidelines on debt payment demand and in accordance with the conditions set forth under Debt Demand Act, B. E. 2558 (2015. In this respect, the outsource must carry out actions on debt demands and collections in accordance with the prescribed standard.”