Bangkok--24 Feb--Krungthai Card
The firm is set to refresh the brand alongside their members and partners.
KTC reveals 2010 performance with 224 Million Baht net profit, 12,180 Million Baht total revenue, 2.26 million accounts member base and 44,775 Million Baht account receivables-net. Benefiting from the ceaseless growth of the personal loan business and undaunted by the competitiveness in the credit card business, the firm will continue to lead the way in the area of reward points and adopt the One-on-One marketing strategy as their key tactic. As well, they are looking to upgrade their IT and operational systems to enhance intelligent database management operation and refresh themselves into an open brand with participation by members and partners to develop the most targeted marketing campaigns.
Niwatt Chittalarn, President &CEO, “KTC” or Krungthai Card Public Company Limited, said “In 2010, Thailand continued to weather domestic economic and political storms which have been ongoing since the prior year. There was also a serious flood but consumption and investment remain on the rise. Employment rate is good and so is government spending budget which contribute to the purchasing power of the consumers. Thai Consumer Confidence index as reported by The Nielsen Company Thailand reflects a consistently positive view of the consumers on job opportunities. The same is true for their view on financial status and spending capability.”
“Facing higher competition, some credit card issuers have come up with attractive promotions using pricing strategy in which card issuers offer lower interest rate compare to their competitors. Another promotion is that card issuers may cooperate with their business alliances providing their customers with rewards when customers reach the spending criterions. According to BOT’s reports, there were 14 million credit cards in Thailand at the end of 2010. It grew by 5% compare to the same period last year. Total receivable and spending (excluding foreign cards and cash advance) were Baht 216,427 million and Baht 719,687 million or increased by 10% and 16%, respectively. As for the personal loan business, new players are entering the personal loan business including state-owned financial institutions and some Thai commercial banks that were not interested in this business before.
Regarding higher competition, many players started using price strategy by offering lower interest rate relative to their competitors.”
“KTC remains capable of maintaining the overall revenue base while also achieving member base growth, thanks to our balance of liquidity and receivables quality. The success can also be attributed to our spending encouragement, reward points and One-on-One marketing campaigns as the main strategies to develop and sustain a rewarding relationship with the clients. Additionally, we are altering certain income group-specific strategies to best reflect the current economic climate, maintain receivables portfolio quality and consistently enhance IT and other service infrastructures such as call center, loyalty program and intelligent database to attain optimal efficiency.”
“As for financial status, we have total asset of 48,541 Million Baht down from 49,828 Million Baht as of December 31st, 2009, net account receivables of 44,775 Million Baht up from 44,007 Million Baht as of the end of 2009 due to consumers’ confidence in recovering economy. In the year 2010, we have net profit of 224 Million Baht, earning per share of 0.87 Baht, total member base of 2.26 million accounts comprising 1,725,789 credit card with net credit card receivables of 33,752 Million Baht, 529,983 KTC Cash personal loan accounts “KTC CASH” with net receivables of 10,597 Million Baht, and, net receivable for the self-employed loans accounts “KTC Million” of 119 Million Baht.”
“Our total revenue in 2010 is 12,180 Million Baht with revenue from interest income including credit usage fees and fee income of 7,985 Million Baht and 3,078 Million Baht or 66% and 25% of total revenue respectively. Total expenses (excluding of tax income) in 2010, is at 11,752 Million Baht down from 12,999 Million Baht as result of our allowance for doubtful account increased in 2009, improved quality of receivables portfolio and slight growth of portfolio. Therefore, we are seeing significantly lowered bad debt and doubtful debt in this year with financial expense decreasing by 5% from the prior year. Although we had heightened marketing activities towards the end of the year resulting in 2010 cost to income ratio of 47% as opposed to 43% of the prior year, our total expense has decreased by 10% from the prior year.”
“Bad debt and doubtful account combine to 4,073 Million Baht down from 5,604 Million Baht of the prior year as KTC already made a significant allowance in 2009 so the allowance is lower in 2010. However, the company still added in the economic factors to calculate the provision as well as quickly written-off. In the year 2010, our available credit line is 21,900 Million Baht with average cost of fund of 4.81% slightly up from 4.80% at the end of the prior year due to slight change in receivables quality. Total borrowing is down by 5% to 39,355 Million Baht from 41,495 Million Baht at the end of 2009.”
“Looking into 2011, our policy and direction will develop towards a refreshment of the brand into a truly open one. Partners, members and the consumers will take part in voicing their opinion on how the KTC brand should evolve. We will continue to roll out marketing and promotional campaigns that best correspond with the needs of members and consumers to reinforce our image of innovation. The logo will be enhanced and so are the brand value and tagline ‘We Write the Stories.’ The One-on-One marketing strategy will be used to help create the greatest value for credit card and personal loan clients and to work our way into new member groups while maintaining strict control on debt quality at the same time.”
For more information, please contact
Public and Corporate Affairs Department
Krungthai Card Public Company Limited
Kandtharat Chermchitphong Tel. 02-828-5057
Suchada Weerasakulrak Tel. 02-828-5732
Fax. 02-828-5046 E-mail:
[email protected]