Bangkok--14 May--Krungthai Card
KTC pleased with first quarter of 2007 results with net profit of 136 Million Baht and combined member base of 1.83 million accounts.
KTC pleased with satisfactory operational results for the first three months of 2007, even small overall growth for the consumer finance industry this year given economic circumstances and rising interest rates charge. Ending March 31st, 2007 with net profit of 136 Million Baht and combined member base of 1.83 million accounts with increasing number of credit card holders and KTC CASH Revolve members. KTC is preparing contingency plans for the fluctuating economy along with maintenance of receivables portfolio quality, building team work for expansion of client base with lifestyle segmentation strategy, encouragement of credit card spending in major provinces, and, offering of practical daily spending privileges through network of partners from different industries.
Niwatt Chittalarn, President & Chief Executive Officer, “KTC” or Krungthai Card Public Company Limited, said “The consumer finance industry is not likely to grow as much as it did in 2006 because of the domestic economic recess. Consumers have to bear more daily financial burdens. Change of minimum credit card debt payment from 5% to 10% and raise of credit card interest rate to 20% directly affect the growth of consumer finance industry. However, a great number of consumers still have to rely on loans to prolong the duration in which they can hold on to cash. We then focus primarily on the expansion of credit card and KTC CASH Revolve (personal loans) member bases because they are capable of generating streams of revenue. We will also regularly bring our clients privileges and lifestyle segmentation based marketing campaigns which take into account their specific needs of different groups of clients like pilots, metrolife people and golfers. This is for the greatest benefit and convenience of the clients when using their card or personal loan and achieved with the help of partners who are at the forefront of their respective industry.”
“As for our operational results in the first quarter of 2007, we have attracted 117,270 new credit card and KTC Cash Revolve accounts, bringing total number of members from 1.77 million accounts at the end of 2006 to 1.83 million accounts. As of March 31st, 2007, there are 1,422,217 credit card accounts, 406,328 KTC CASH personal loan accounts and 3,706 KTC Million self-employed loan accounts.”
Receivables portfolio in the first quarter of 2007 involves net receivables of 40,027 Million Baht, 35% rise compared to the same period of the previous year. The total value of our portfolio has not risen significantly thanks to strongly attention paid to receivables quality management.”
“Income from interest and credit line usage fee in the first quarter of 2007 is 1,698 Million Baht. This is a 49% rise compared to the same period of 2006 and greater than the growth of total receivables. Increased interest receivable from credit card and KTC CASH businesses contribute to 90% of this.”
“Cost to income ratio is 52%, down from 56% at the end of 2006, as the growth in income has surpassed managerial expenses. To this end we have focused on enhancing the value of work while the number of employees remains the same.”
“Policy interest rate is lowering but our financial cost is still rising because the earlier debentures from which we used to enjoy considerably low interest are nearing due. We have thus arranged for refinance at a higher market interest rate which brings our financial cost to 5.18%. At the same time, interest receivable has risen more than financial cost did, bringing net interest margin up a little. If we raise interest rate from 18% to 20% in the middle of this year, this margin may be greater.”
“With regard to financial status as of March 31st, 2007, we have total assets of 42,136 Million Baht up from 41,675 Million Baht at the end of 2006. Net account receivables of 40,027 Million Baht is comprised of 27,380 Million Baht net credit card receivables or 65% of total assets, 8,988 Million Baht in KTC CASH or 21% of total assets and 3,047 Million Baht in KTC Million or 7% of total assets.”
“We still hope to generate more revenue on a consistent basis and look for new business opportunities to maintain our leading edge with unique marketing strategy and proper receivables quality management, particularly during this time of economic recess. Our net profit in the first quarter is 136 Million Baht.”, said Niwatt in conclusion.
For more information:
Public and Corporate Affairs Department
Krungthai Card Public Company Limited
Kandtharat Chermchitphong Tel. 0-2828-5057
Suchada Weerasakulrak Tel. 0-2828-5732
Fax. 0-2828-5046
E-mail: [email protected]
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