Bangkok--15 Aug--Krungthai Card
KTC announces 826 Million Baht profit for the first half of the year with net profit of 471 Million Baht in the second quarter of 2014 or a growth of 58% over the same period of last year. This is consistent with recovery of the economy and improved market confidence. The firm is enjoying growth in all areas with 7% increase in spending and lower NPL than industry’s. Personal loans portfolio has grown consistently to 10%. Intensive plans are revealed for the second half of the year with new credit card campaigns to be rolled out for specific member groups, “KTC PROUD” with longer repayment duration, and, more comprehensive online services. These flagships are believed to be crucial to the achievement of goals set.
Mr. Rathian Srimongkol, President & Chief Executive Officer, “KTC” or Krungthai Card Public Company Limited, says, “We are pleased to see the trend of consistent improvement in the Thai economy. Situations are being resolved and that fact has resulted in the consumer confidence index soaring the highest in the year. We have had a satisfactory performance in the second quarter ourselves. Our net profit is 471 Million Baht or a 58% rise, from 299 Million Baht excluding special transaction in the second quarter of 2013, and a 33% rise over the first quarter of this year. This success is due to our regular and intensive marketing campaigns and efficient management of cost and receivables portfolio’s quality.”
“As of June 30th, 2014, we have a net account receivable portfolio of 46,081 Million Baht or a rise from 44,137 Million Baht in the same quarter of last year. Total member base is at 2.4 million accounts or a 6% rise over the same period of last year. This can be broken down into 1.69 million credit cards with net credit card receivables of 31,420 Million Baht; and, 663,770 personal loan accounts with net personal loan receivables of 14,446 Million Baht. Credit card NPL is down to only 2% while personal loan NPL is down to only 1.2% while recovered lost debt has increased by 24% over the same period of last year or 421 Million Baht.”
“Our total revenue in the second quarter of 2014 is 3,514 Million Baht or a rise of 9%. Management expenses are at 1,257 Million Baht or a rise of 15%, mostly due to increased marketing expenses from the more diverse campaigns introduce to accommodate the needs of the members. As a result, our members spend 7% more than the same period of last year. Moreover, we have been able to bring our financial costs down by 5%, including lowered bad debt and doubtful accounts. Our total expense is 2,924 Million Baht. Ultimately, our net profit has grown by 58% over the second quarter of 2013.”
“For the first half of 2014, we have a net profit of 826 Million Baht. Total revenue grew by 9%. Although management expenses rose by 10%, we have been successful at keeping financial cost and bad debts and doubtful accounts down by 6% and 1% respectively.”
“For the second quarter of 2014, we have an available credit line of 24,940 Million Baht, which consists of 18,030 Million Baht from Krungthai Bank and 6,910 Million Baht from other commercial banks. The ratio of debt to shareholder’s equity is 6.75 which is lower than our obligation of 10.”
“As for the second half of this year, we are working to achieve our long-term goal of becoming the number one firm in the credit card business by 2018. To this end, we will focus on improving internal systems and operations under the ‘Make it BETTER’ concept. The credit card business unit will approach more heavily the niche groups like high-income members and members in the major provinces. Marketing campaigns will be launched in collaboration with leading partners in a diverse range of industries in order to bring privileges that encourage regular spending. For the personal loans business, marketing campaigns will be rolled out to improve brand awareness and to rebrand as ‘KTC PROUD’. A new feature is the option of installment payment with a duration of up to 36 months. We will also attempt to expand our member base, encourage spending and help alleviate the burdens of our members with the aim to achieve brand loyalty eventually.”
“KTC will further improve online service efficiency for a better and more comprehensive experience. Members can complete transactions on their own at any time of the day using the TapKTC and ClickKTC applications. With uncomplicated, easy-to-understand menus, we are the first financial institution to give members the possibilities of initiating installment payment plan, and, verifying or using rewards points on their own. Looking forward into the future, we will work more with the network of Krungthai Bank in order to implement a wider range of financial products and services which will be of mutual benefit in the long run.”
“Most important of all, KTC has a policy of achieving sustainable business growth in tandem with the betterment of the society by working with our own people and third parties. We will contribute to the development of a knowledge sharing culture within our organization and among the interested parties out there. College students will also gain valuable experience working on a part-time basis with us under the Learn & Earn @ KTC program. This is where they can develop language skills, appreciate the culture of learning, and learn to be a giver when they have the chance to help those who are less fortunate in the future.”