Mr. Rathian Srimongkol, President & Chief Executive Officer, "KTC" or Krungthai Card Public Company Limited, reveals, "The overall economy growth in the first half of the year was higher than the projection, resulting in the Bank of Thailand adjusting the GDP forecast for 2016 up slightly to 3.2%. KTC remains capable of generating income and profit from increase in card spending and portfolio in both key businesses which are credit card and personal loan. Our card approval standards are consistent with our target groups, as well as the constantly fluctuating circumstances. Our collection measures are also efficient, making our NPL the lowest in the industry."
"During the past nine months, we were able to generate 1,854 Million Baht profit or a growth of 21% over the same period of the previous year. This is due to 13% revenue growth during the nine months, good control in cost of fund and efficient portfolio management which kept the NPL low. For the third quarter of 2016, net profit is 640 Million Baht or a 10% rise over the second quarter of this year and 28% rise over 499 Million Baht of the third quarter of 2015. The growth in income of 12% exceeds increase in expense of 10% from the fees paid to outsourced service, write-off of bad debt, and increase in provisioning in accordance to portfolio growth."
"As of September 30th, 2016, we have total assets of 61,146 Million Baht or a 12% rise over 54,773 Million Baht of the same period of 2015. Our net account receivable is 57,015 Million Baht. There are a total of 2.8 million member accounts or a 12% rise over the same period of the previous year. This comprises 2,039,967 credit cards with net credit card receivable amount of 38,247 Million Baht, and, 793,486 personal loan accounts with net personal loan receivable amount of 18,603 Million Baht. Non-performing loan is 1.86%, down from 2.19% of the same period of the previous year. The NPL for credit cards is down to 1.37% from 1.42%, while the NPL for personal loans remains at the same level of 1.01%. Growth in credit card spending is at 14.0%, which is higher than the industry's rate of 7.2%."
"Our company has total income of 4,403 Million Baht in the third quarter of 2016 or a 12% rise over the same period of the previous year. This comprises 2,735 Million Baht in interest income including credit usage, 951 Million Baht in fee income and 717 Million Baht in other income, respectively accounting for 62%, 22% and 16% of total income. Other income is mostly from bad debt recovery. Meanwhile, total expense excluding income tax is at 3,602 Million Baht or a 10% increase from 3,287 Million Baht of the same period of 2015. This is due to 9% increase in administrative expenses and 15% increase in bad debt and doubtful account. However, financial expense is down 8%, due to the replacement of matured debt with lower interest rates. Moreover, we have a diversified short-term and long-term borrowing structure from various financial institutions, and our cost to income ratio is 39.2% for the third quarter of 2016 (39.6% for the nine months) down from 40.3% of the same period of the previous year."
"For the third quarter of 2016, we have an available credit line of 25,390 Million Baht. This is 18,030 Million Baht from Krungthai Bank and 7,360 Million Baht from other commercial banks. The financial cost is 3.15% for the third quarter and 3.27% for the nine months, which is a decrease from the same period of the previous year. This is due to our new debenture issued at a lower interest rate than the matured debt. Our ratio of debt to equity is 5.27, which is lower than our covenant of 10."
"As for our marketing plans in the last quarter of 2016 and forward into 2017, we have a goal of becoming the members' preferred brand as that is sustainable success. There are three key initiatives to this end. Firstly, our personnel must regularly develop their learning potentials, proactively engage their duties and have a sense of ownership. Secondly, a customer centric approach must be implemented. And, thirdly, our information technology system must be supportive of new business models, particularly digital businesses. This is to correspond with the needs of the customers, develop a sustainable, long-term relationship and manage debt quality at an appropriate level."
"We have also prepared a long-term plan to accommodate the digital technology trend with significant effect on the growth of the economy, the change in national e-payment system and the up and coming fin-tech business. Options will be offered for the customers to complete payments through new card/payment platforms. Our personnel must develop themselves in order to gain more understanding of the customers, use insight intelligence through analytics and deliver excellent services. This will create in customers the confidence to use our services and contribute to our sustainable growth in the long run."
"For the year 2017, we aim to have at least 15% growth in card spending and approximately 10% portfolio growth while maintaining NPL at the same level as 2016. We expect to generate at least 10% more profit in 2017."