Mrs. Sutharntip Phisitbuntoon, Chief Executive Officer of Heng Leasing Public Company Limited' or HENG, one of Thailand's major loan service providers under the brand 'Heng Leasing', reveals that, in respect of overall performance in the year 2022, HENG has succeeded in expanding the total loan portfolio to Baht 12,020 million or 31% growth compared to the same period of last year. The success comes from efficiency in providing loan services which responds to the needs for funding of local people. After successfully opening 678 service branches nationwide, HENG was able to reach new customers who continuously use loan services. The secured loan portfolio accounts for 96% of the total loan portfolio and can be categorized based on loan type consisting of 56% hire-purchase loans and 39% car title loans. The remaining 5% of the loan portfolio is mortgage loans. In addition, revenues from life insurance and non-life insurance brokerage fees have outstanding growth of 88% compared to the previous year.
Such success resulted in HENG's total revenues for the year 2022 being Baht 2,124 million, an increase of 30%, and net profit of Baht 461 million, an increase of 30%, compared to the same period of last year. The return on hire-purchase loan is at 15%, which is close to the government interest rate, illustrating good profitability. The company's strategic plan is to provide more car title loan services to drive growth. Consequently, the average return on loan services for the year was 18%. With effective debtor management, the cost of provisioning receivables was reduced to 4.5% from 5.9% previously, and NPLs were reduced to 3% from the target of 3.1%, which was better than such target.
For sustainable development organization, the company operates the business under environmental, social and governance standards and principles (ESG), focusing being responsible to 3 main topic areas while doing business: environment, society, and governance. Environment includes the company's responsibility to the environment. Social is a criterion used to measure how the company manages relationships and communicates with employees, partners, customers or stakeholders. Governance involves a measure of how the company manages its governance relationships for efficient, transparent, verifiable management, and considering stakeholders. The ESG concept helps build credibility for businesses by reflecting the roles and responsibilities of the business towards the stakeholders and presenting results of business development for sustainable growth.
The meeting of the Board of Directors held on 17 February 2023 has resolved to approve the dividend payment for the operating results in the year 2022 at the rate of Baht 0.0666 per share as return to shareholders, representing 55% of the net profit from the separate financial statements, which is higher than the dividend payment policy set at 40% of the net profit from the separate financial statements after deducting corporate income tax and legal reserves. The list of shareholders, who are entitled to receive dividends, shall be determined on 3 March 2023 (Record Date) and the date of dividend payment shall be on 12 May 2023.
In respect of the loan market out look in the year 2023, loans continue to expand well due to the demand for loans for occupation. The trend is in line with local economic recovery and improvement of tourism. HENG's goal this year is to increase the total loan portfolio to Baht 14,400 million, adhering to sustainable principles in conducting business. The company is environmentally and socially responsible and operates the business under the principles of good governance or ESG with the aim that HENG shares will be selected as Thailand Sustainability Investment (THIS) into SETTHSI Index by the Stock Exchange of Thailand at the end of each year, being one of the investment alternatives for investors who wish to have responsible investment.
Source: MT Multimedia