Bangkok--13 May--Krungthai Card
KTC achieved good first quarter performance with 60 Million Baht net profit and 2.3 million accounts member base. The firm now sets eye on social mediaas a key brand-building tool for the consumer finance business.
KTC reveals performance for the first three months of 2011 with total revenue of 3,069 Million Baht, 2.3 million accounts member base, total net receivables portfolio of 43,135 Million Baht and net profit of 60 Million Baht. The growth from the same period of last year is explained by increased in interest income from the personal loans business and the interchange fee of the credit card business, as well as bad debt recoveries. The firm is now well on its way to becoming an Open Brand in the Thai consumer finance industry with the use of social media to attract more B Group members, their business partners and associates.
Niwatt Chittalarn, President & CEO, “KTC” or Krungthai Card Public Company Limited, said “The Thai economy in general is still showing an upside trend like in the last year. The loan business has become more competitive and we are trying to counter that with some adjustments in our own operations. Some of the initiatives we have taken are to refresh our brand into a more open one with the ‘we write the stories’ concept, to define more clearly the client base for each of our business groups, as well as to gain better access to B Group members. Our firm is seeking to increase the key revenue through more thorough study of consumers’ lifestyles, behaviors and media choices and use those findings to plan our marketing and communication more effectively. We will rely more on online channels and social media for the B Group, for example.”
“As for our financial status as of March 31st, 2011, we have total assets of 46,981 Million Baht down from 48,541 Million Baht of December 31st, 2010. Net account receivable has risen to 43,135 Million Baht from 42,633 Million Baht of the same period of last year. Members now total at 2.3 million accounts or a 7% growth over the same period of last year. This is comprised of 1,763,514 credit card accounts with net credit card receivable of 31,892 Million Baht and 541,836 KTC CASH personal loans accounts with net KTC CASH receivable of 10,847 Million Baht.”
“We have had a net profit for the first quarter of 60 Million Baht or a 106% rise from the same period of 2010 as our total revenue has increased to 3,069 Million Baht from 2,943 Million Baht. Income from interest including credit usage fee and fee income in this quarter are 2,006 Million Baht and 769 Million Baht respectively. Administrative costs and bad debts and doubtful accounts have risen while financial expenses have lowered by 8% from last year.”
“The cost to income ratio in this first quarter of 2011 is 46%, slightly lower than 47% as of the end of 2010. Bad debts and doubtful accounts equal to 1,091 Million Baht, up from 979 Million Baht in last year as KTC started acquiring more new members. Beside, the company added in the economic factors to accommodate risks that might arise from economic fluctuation in the future.”
“As for the first quarter of 2011, we have an available credit line of 21,390 Million Baht, average cost of funds of 4.87%, slightly up from 4.81% of 2010. Net interest margin has increased from 13.1% at the same period last year to 13.4%. The ratio of debt to equity is down from 6.42 as of end of last year to 6.13, which stays at satisfy level and lower than the bond covenant at the maximum D/E ratio of 10 times.”
“Our marketing strategies for credit card and personal loans from now will be in line with our open brand policy. In addition to activities targeting B Group clients, we will offer cross benefits between credit cards or between a credit card and a personal loan. We will also select new and exciting services and privileges concerning travel, insurance and investment as added values and convenience for our members. Brand loyalty-oriented marketing programs will be those which involve the use of KTC Forever Rewards and KTC Miles, as well as new media and social media as a mean to communicate with a broader group of clients or what we call the Communities of Consumers. We will, of course, have to maintain the quality of our portfolio as best we can,” said Niwatt in conclusion.
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]