Bangkok--14 May--Krungthai Card
KTC has announced an all-positive performance for the first quarter of 2014 with net profit of 355 Million Baht or a growth of 77% over the same period of the previous year, despite the economic slowdown and the political uncertainty. Net receivable portfolio and member base all grow consistently while NPL is lowered. The firm will continue to proceed with caution while developing new marketing campaigns for both the credit card and the personal loan businesses for the benefit of the members. It is confident that the revenue at yearend will be as projected.
Mr. Rathian Srimongkol, President & Chief Executive Officer, “KTC” or Krungthai Card Public Company Limited, reveals that “For the performance of our company in the first three months, we have a total revenue of 3,369 Million Baht or an increase of 9% from the same period of the previous year. Net profit is at 355 Million Baht with total assets of 49,078 Million Baht. Net receivable portfolio is 44,943 Million Baht which is higher than 42,684 Million Baht of the same quarter of the previous year. Our 2.3 million member accounts are comprised of 1,636,444 credit cards with net credit card receivables of 30,808 Million Baht, 650,856 KTC CASH personal loan accounts with net KTC CASH personal loan receivables of 13,915 Million Baht. NPL is down to 2.2% for credit cards and only 1.4% for personal loans, compared to the same period of the previous year, while bad debt recovery increased by 27% compared to the same period of the previous year or 414 Million Baht.”
“Although the demand for loans has subsided due to the economic slowdown and the political uncertainty, KTC is still moving forward with marketing programs for our key products which are credit cards and personal loans. Our marketing efforts are focused on daily spending necessities and on offering greater value to the consumers when they spend with our credit card or when they use our cash loan. These privileges we offer are exactly what our members need and, as such, we have observed an increase of spending via KTC credit card at the rate of 3%.”
“Our available credit line for the first quarter of 2014 is 25,090 Million Baht, 18,030 Million Baht of which is from Krungthai Bank and 7,060 Million Baht is from other commercial banks. The ratio of debt to shareholders’ equity is 6.6 which is lower than the bond/loan covenant at the maximum D/E ratio of 10 times.”
“Strategy-wise, we will strive to become the leader in the credit card business. In this first year, we will pursue this growth objective with the ‘Make it Better’ initiative where we ensure that care is exercised by consistent management of risks and debt quality. We will also be monitoring external factors closely and preparing contingency plans for the different situations while developing new products, services and privileges to best suit members’ preferences. We will reach out to new credit card member groups by introducing new cards that correspond with their needs in collaboration with partners. Niche marketing programs will be launched to target medium and high-end customers in a more proactive manner. For the personal loans business, campaigns will be introduced to increase financial flexibility of our members. Those who have good financial discipline will be rewarded and more products will be launched that will satisfy the requirements of our target groups even more.”
“Additionally, we are collaborating in other areas with Krungthai Bank by combining the marketing and innovation strengths of KTC with the financial excellence of Krungthai Bank. This collaboration allows us to mutually use each other’s network and to benefit from a shared customer base as well. In addition to financial products, the bank is now in the process of transferring the retail debt collection system to KTC for enhanced efficiency and lowered cost. As far as personnel is concerned, KTC is working on courses to help our employees improve their competitiveness. These elements should come together as a synergy to help us achieve the projected revenue eventually,” says Rathian in conclusion.