Bangkok--10 Aug--KTC
KTC reports 111 Million Baht net profit for the first half of the year or 138% YOY growth, with total member base of 2.4 million accounts and net receivables of 44,016 Million Baht.
KTC concludes the first half of 2011 with net profit of 111 Million Baht or 138% year-on-year growth. Total revenue rose to 6,222 Million Baht with total member base of 2.4 million accounts and 44,016 Million Baht in net receivables, as a result of increased interest income from personal loans business and fees, as well as increased in bad debt recovery.
Niwatt Chittalarn, President & Chief Executive Officer, “KTC” or Krungthai Card Public Company Limited, said “The Thai economy continued to see constant growth with greater consumers spending. Financial institutions are offering more benefits and relaxed loan conditions to maintain their client base in this increasingly competitive market. Non-bank institutions are at an advantage as they have greater operational flexibility as afforded by their loan service locations in Bangkok and other provinces. At the same time, Thai commercial banks compete in the market and secure retail clients with their pricing strategy and low interest rates while foreign banks have turned to social network channels instead as they are under branch restrictions.”
“We are considered a non-bank institution and have been closely monitoring domestic and foreign influences. Therefore, we are capable of altering our strategies to reflect the changing business circumstances at each moment and to best respond to the consumers and our members.”
“As for financial status, as of June 30th, 2011, we have total assets of 48,172 Million Baht. The majority of which or 91% of this is receivables that creates the main revenue stream for us. Net receivables portfolio is 44,016 Million Baht, up from 42,689 Million Baht at the same quarter of the past year. Total member base is at 2.4 million accounts or a 10% growth over the same period of the past year. This is comprised of 1,798,518 credit cards with net credit card receivables of 32,122 Million Baht, and, 556,578 KTC CASH personal loans accounts with net KTC CASH receivables of 11,530 Million Baht. Credit card spending is growing at 13% over the same period of last year. This is in the same range as other non-bank institutions.”
“Our net profit in the second quarter of 2011 is at 50 Million Baht or a 193% increase from the same period of 2010. This is because total revenue increased from 2,972 Million Baht to 3,153 Million Baht while income from interest income including credit usage fee, and fee income are 2,046 Million Baht and 813 Million Baht respectively. Total expense is increased because of the marketing costs associated with the credit card spending encouragement and provision. Financial expenses, on the other hand, dropped 6% from the past year.”
“Our cost to income ratio in the second quarter of 2011 is at 46%, slightly lower than 47% as of the end of 2010 and the same period of last year. Total bad debt and doubtful accounts are now at 1,131 Million Baht, up from 1,034 Million Baht of the past year. We have increased the provision as we now have more members, so we have to comply with our own policy on allowance for bad debt including economic factors in order to accommodate risks from economic fluctuation in the future.”
“For this first half of 2011, we have an available credit line of 22,290 Million Baht. Average cost of fund cost is 4.75%, down from 4.81% as of the end of 2010. Net interest margin increased from 13.2% at the end of the past year to 13.5%. The debt to equity ratio is 6.36, down from 6.42 as of the end of the past year which stays at satisfying level and lower than the bond covenant at the maximum D/E ratio of 10 times.”
“We will continue to engage in marketing activities and communicate with the target groups to ensure they have access to our developments and the benefits or differences we offer. We will pursue online social media channels, too, with intriguing marketing activities while risk and portfolio will also be managed to the best possible efficiency,” 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]