กรุงเทพฯ--15 ส.ค.--KTC
KTC discloses operational results for the first six months of 2006 ending June 30, 2006: net profit of 216 Million Baht and over 330,000 more accounts compared to the same period of 2005 or a 137% growth as more people resort to consumer finance amidst ongoing economic fluctuation. The firm is set to attract more members, prepare business plans to accommodate changing economic circumstances, maintain account receivable portfolio quality and encourage reasonable spending through cards using innovation and efficient marketing campaigns. Daily spending discounts offered should bring more opportunities and returns in the future.
Mr. Niwatt Chittalarn, President & Chief Executive Officer, “KTC” or Krungthai Card Public Company Limited said “Given current economic circumstances, consumers have to shoulder higher cost of living and they need to prolong the duration when they hold on to cash by using loans. We see this as an opportunity to expand our member base and have thus focused on attracting more credit card and KTC CASH Revolve clients as they are capable of generating constant income and of providing clients, as members, a variety of privileges. Also, we have organized marketing activities to encourage spending via cards and to bring even more benefits to the members. This is done through partnership marketing with top business partners. And we concern ourselves with efficient data processing system development as well.”
“As for our operational results in the first half of 2006, we have attracted 335,772 more accounts or a 137% growth compared to the same period of 2005. This growth is even greater than that of entire 2005 combined. Of this number, we have 212,476 new credit cards and 122,251 KTC CASH accounts, resulting in the numbers of credit cards and KTC CASH accounts as of June 30, 2006 being 1,341,670 and 215,165 respectively. Total net account receivable has risen 21% from the end of 2005 with total account receivable in second quarter of 2006 being 33,609 Million Baht or a rise of 31% from the same period of 2005. This will result in a more continuing flow of income to be generated in the long run.”
“We have total income of 1,951 Million Baht in second quarter of 2006 or a 37% rise from the same period of 2005. Total income for the first six months of 2006 is 3,666 Million Baht or a 37% rise with interest income plus credit line usage fee and fee income accounting for 67% and 29% of total income respectively. Interest income plus credit line usage fee for this quarter is 17% higher than that of the previous quarter or 33% compared to the same period of the previous year. This is primarily a rise from increase of interest income in credit card and KTC CASH personal loan businesses.”
“Total expense in the second quarter has risen 18% from the previous quarter. Main increase is due to more extensive management with respect to expansion of credit card and KTC CASH Revolve client bases. Increase in marketing expense to be paid is indicated immediately in each month while income from new members will be generated in the near future. We also pay greater consulting and outsource fees in accordance with greater number of transactions. Cost to income ratio in second quarter of 2006 is 57%. Bad debt and doubtful account expense rise with account receivable and client base growths. Interest expense rises because of fluctuating and constantly rising interest rates. We are paying higher cost of fund the same as with other companies in this industry. Repurchase rate has rise from 4.00% at the end of 2005 to 5.00% at the end of June 2006, resulting in our cost of fund for the first half of this year being 4.41%.”
“With regard to financial status, as of June 30, 2006, we have total asset of 35,225 Million Baht or a 19% rise from the end of 2005; net account receivable of 33,609 Million Baht comprising of net credit card receivables of 23,601 Million Baht, net KTC CASH personal loan receivables of 5,367 Million Baht and net self-employed loans (KTC Million) receivables of 3,948 Million Baht.”
“We are still capable of generating more income. And we are determined to succeed in business while offering consumers assistance at the same time although we may have to be affected by higher financial cost, considering that interest rate and inflation rate seem to continue rising. Our net profit is 216 Million Baht for the first half year and 80 Million Baht for the second quarter of 2006.”, said Mr. Niwatt in conclusion.
For more information:
Public and Corporate Affairs Department
Krungthai Card Public Company Limited
Kandtharat Chermchitphong Tel. 0-2665-5057
Suchada Weerasakulrak Tel. 0-2665-5732
Fax. 0-2665-5046
E-mail: [email protected]