Bangkok--Nov 10--Krungthai Card
KTC discloses the profit for Quarter 3 of 2005 of 494 Million Baht or a rise of 8.9%. The firm seeks to become the clients’ most preferred brand, winning long-term commitment while maintaining debt quality at the same time. The one-year-old entrepreneur loan is seeing a promising future with unexpectedly good response and a growth of 3,763 Million Baht.
Mr. Niwatt Chittalarn, President & Chief Executive Officer, KTC or Krungthai Card Public Company Limited disclosed the operational results of 9 months ending the 30th of September 2005 “We have a net profit of 494 Million Baht or a rise of 8.9% compared to the same period of 2004 and a basic earning per share of 1.93 Baht.”
“The increase in total income to 1,514 Million Baht in Quarter 3 is a result of the increase in interest and fee income which continues to grow at over 59% and 38% respectively. Entrepreneur loan is also becoming a strong income generator and has generated an interest income of 135 Million Baht in Quarter 3. The service is growing at 12.9% and the entrepreneur loan interest income is 8.9% of total interest income.”
“The total expense is 1,082.58 Million Baht which is greater than that of the same quarter of 2004. This is due to the interchange fee which increases in proportion with the greater amount of spending via credit cards, the fee we pay under supporting service agreement, and, the fee we pay to outsource
companies in proportion with greater number of transactions for client data processing by a foreign company, debt collection, potential credit card client identification and client data input and verification, for instance. Additionally, we have moved certain offices to Thai Summit Building and open more KTC Boutique Branches and KTC Touch locations so that their numbers are now 16 and 33 respectively to offer clients greater convenience.”
“As for financial status, as of the 30th of September 2005, KTC has a total asset of 28,297 Million Baht or a rise of 24.4% from the end of 2004. Our primary assets comprise of 18,971 Million Baht in credit card receivable, 720 Million Baht in Circle Loan receivable, 3,628 Million Baht in KTC Cash receivable and 3,763 Million Baht in KTC Million receivable or a total of 27,082 Million Baht or 95.7% of total asset. The number of credit cards issued at the end of Quarter 3 of 2005 was 1,129,891.”
“We do not only concern about expanding our credit card client base but we have also clearly demonstrated our status of being the leader of Thai credit card and consumer finance industry. We have introduced several new financial innovations, proactive marketing strategies, products and services designed for all client groups, lifestyles and daily activities to ensure utmost convenience. We want to make KTC the most preferred brand and create a positive long-term brand experience by putting all benefits in one card under the Membership Company concept.”
“For the last quarter of 2005, we are running a grand campaign of the year called “Enviable Life with KTC”. Clients may participate easily as one eligibility will be granted for every 500 Baht spent or withdrawn in advance via the credit card. New applicants will be automatically granted five eligibilities towards winning three prizes gold weighing 500 Baht worth 5 Million Baht or a total of gold weighing 1,500 Baht worth 15 Million Baht. One prize will be awarded each month over a period of three months from the 1st of November 2005 to the 31st of January 2006. What more special is that we have another 15 Million Baht program to please those who do not wish to leave it to chances. “13 KTC Special Weeks” will bring a variety of exceptional benefits to the members throughout a period of 13 weeks. These cover all daily spending categories: gas refill, restaurants, department stores, discount stores, hospitals, travel, ICT, electrical appliances, fashion items, watches and ornaments. This is to celebrate the arrival of our 10th anniversary and to thank the clients for their continued patronage.”
“With regard to personal loan, we have a net KTC cash debtor of 3,628 Million Baht. We have altered our operational plan for this business by slowing down the increase of debtors as overall economic growth is lower than estimated. Besides, we highly concern about the quality of debt. This is why KTC clients are smaller in number compared to the previous quarter. The income generated, however, remains on the same level as that in the previous quarter. The interest income and fee generated by KTC Cash is 14.4% of the total income.”
“KTC Million, our entrepreneur loan, had its 1st anniversary in September 2005. We regard it as a highly successful business with a net amount at the end of Quarter 3 of 2005 of 3,763 Million Baht, an increase of 1,895 Million Baht over 1,868 Million Baht as of the end of 2004. Additionally, we have launched “KTC Million Club” to help KTC Million members expand their business network contacts and offer them greater convenience through benefits and KTC Million points which they will be awarded for early or punctual repayment. KTC Million points can be used to redeem other privileges. There were 2,386 KTC Million accounts as of the end of September 2005 or a 20.3% increase over the pervious quarter.”
“Regarding debtor risk management, we pay attention to the repayment ability of debtors of all services. Our debtor portfolio analysis and loan approval departments are handling risk management, following up on defaulted debtors and verifying spending status with National Credit Bureau and our own client database to determine overall risk of each client. That is why we have a delinquency rate of 30-179 days which is low compared to others in this industry.”
“Nevertheless, we remain very capable of generating more income despite of the rising financial costs as a result of the interest rates and rising inflation rate. As for the credit card business in Quarter 3 of 2005, we continued to use promotional information and benefits to encourage clients to use credit card instead of cash. These are spending people cannot avoid in their daily life such as gas refill, shopping at department stores and medical expenses. As for personal loan, we are now offering a refinance service to expand our KTC Cash client base. Debtors will pay a lower interest rate than that they are paying to other financial institutions. Lastly, the entrepreneur loan which has been in operation for one full year in this quarter is capable of generating considerable income and is well received by the clients. The level of bad debt is considerably low and we expect that the service will continue to grow well.”
“Given the operational results above, the key financial ratios are D/E of 4.18, a slight increase due to greater amount of borrowing by other financial institutions, ROA of 2.6%, and, ROE of 12.3% which is an increase compared to that as of the end of 2004. This is partly because our profit has increased in greater proportion than the increase in shareholder’s equity from ESOP exercise of right. Our expansion of business lines and different income-generating marketing promotions demonstrate that we are more capable of making profits as well.”, said Mr. Niwatt in conclusion.
For more information, please contact
Public and Corporate Affairs Department, KTC
Kandtharat Chermchitphong Tel. 0-2665-5057
Suchada Weerasakulrak Tel. 0-2656-5732
Atiga Dechawatanapisal Tel. 0-2665-5048
Fax. 0-2665-5046
E-mail : [email protected]
Click for photo release at www.thaipr.net End.