Bangkok--18 Feb--Krungthai Card
KTC achieves record high profit of 1,755 Million Baht and pays 2.75 Baht dividends to the shareholders to coincide with the Chinese New Year.
The firm takes pride in consistent quality of receivables portfolio and aims to further improve
the organization for sustainable member satisfaction.
KTC reports net income of 14,337 Million Baht for 2014 or a rise of 10% from the same period of the prior year. Net profit is 1,755 Million Baht or a growth of 69% from 1,037 Million Baht, exclusive of special transactions, of 2013. This is a result of high efficiency management of costs and debtors portfolio quality, combined with the use of proactive organizational restructuring strategies where all departments are encouraged to collaborate towards the same mission and core values. Research and development, as well as members’ behavior analyses, contributed as well through the creation of products and services that best serve the members. For the year 2015, KTC will have more efficient IT system, new mobile applications for transactions, and, more focused online marketing activities for improved customer engagement.
Mr. Rathian Srimongkol, President & Chief Executive Officer, “KTC” or Krungthai Card Public Company Limited, reveals, “It is with great pleasure for me to share that our company has achieved record net profit last year –the highest since the beginning of our operation 18 years ago. The net profit in 2014 is 1,755 Million Baht which is a rise from 1,037 Million Baht in 2013, exclusive of special transactions. This translates to earnings per share of 6.81 Baht and we have consequently proposed the payment of 2.75 Baht dividends to the shareholders. We have made good progresses last year in accordance with our credit card and personal loan business plans. Our total income has risen and the ratio of operational expense to net profit is maintained in positive range, despite the slowdown of the overall Thai economy.”
“As of December 31st, 2014, we have net assets of 54,495 Million Baht or a rise of 5% from the 51,905 Million Baht of the same period of the prior year. Net accounts receivable is at 50,123 Million Baht or a 7% rise from the same period of the prior year. Total members stand at 2.5 million accounts or a 13% rise from the same period of the prior year. The 1.81 million credit cards constitute 69% of the net accounts receivable with net credit card debt amount of 34,715 Million Baht or a 6% rise. Personal loans portfolio is 30% of net accounts receivable. The 693,273 member accounts make up for net personal loan debt of 15,201 Million Baht or a rise of 12%. Credit card NPL is reduced to 1.7% while the number is 1.2% for personal loan. Meanwhile, recovered lost debt increases by 22% over the same period of the prior year or 1,766 Million Baht. The year’s credit card spending growth is 7.4%.”
“Our total income in 2014 is 14,337 Million Baht or a 10% rise over the same period of the prior year. Total expense, exclusive of income tax, is 12,130 Million Baht or a rise of 4%. Of this amount, 5,377 Million Baht is administrative expenses or a rise of 13% from the more proactive marketing activities and from the increase of debt collection personnel members. Nevertheless, we are able to bring financial expenses down by 5% and bad debt and presumably bad debt down by 2%. And with the greater increase in income, our net profit has seen a growth as mentioned.”
“We now have an available credit line of 23,120 Million Baht, being 18,030 Million Baht from Krungthai Bank and 5,090 Million Baht from other commercial banks. The ratio of debt to shareholders’ equity is 6.40 which is lower than our obligation of 10.”
“For the year 2015, we will strive to become the most preferred brand in card business and non-collateral personal loans by 2018. We are improving customer engagement with more efficient IT system, new mobile applications for transactions, more focused online marketing activities, and, expansion of business to the larger provinces in the regions with economic ties to the neighboring countries as those are high-growth markets. These efforts will combine to increase the number of members in the provinces. And we will continue to develop our people in all aspects to prepare for the expansion of our business as well.”
“According to our marketing plan for 2015, for the credit card business, our main focus is on the spending of the primary card. We are working with a diverse range of partners to create marketing activities in all spending categories and at establishments that correspond with the preference of our members. This covers both everyday usage and occasional usage for all member groups, particularly the high-end group. Extra income will be gained through supplementary services such as U Shop V Deliver online shopping, KTC World Travel Services, insurance plans and interest-free installment payment plan over a period of up to 10 months. Expected growth total credit card spending 15%.”
“For personal loans business, we will be the accessible source of loans and an encouragement for responsible spending discipline. Our new target group is people in the provinces and first jobbers. We will try to attract members through new channels and engage in both mass and segmented marketing activities. And as a gesture of gratitude for the trust they have in us, we will help our members with their expenses by creating activities which match with their interests and those which contribute to their career and income for long-term member satisfaction.” Expected growth in personal loans 15%.”