Bangkok--12 Nov--Krungthai Card KTC’s personal loan business sprouts. 448 Million Baht net profit in nine months. 29% growth, below-industry delinquency rate and 1.74 Baht earning per share. KTC reveals operational results for the period ending September 30th, 2007. Net profit of 448 Million Baht in the first nine months and total revenue in excess of 7,777 Million Baht 29% and 35% growth over the same period of 2006 respectively from portfolio management and delinquency rate control. Member base of 1.92 million accounts as a result of constant personal loan member portfolio expansion. The firm is set to tackle economic slowdown in the last quarter of the year by focusing on the expansion of regional member bases together with the use of lifestyle segmentation strategy to encourage the use of credit cards in daily life. More privileges will be offered by partners as added value plus the possibility of installment payment and the use of fewer points to redeem products and services. Niwatt Chittalarn, President & Chief Executive Officer, “KTC” or Krungthai Card Public Company Limited, said “It is true that consumers have been more cautious in their spending since the beginning of this year and that we have been affected by rising financial costs. However, we remain capable of generating a steady stream of revenue thanks to our new business strategies which are consistent with prolonged economic recess. We actively manage portfolio quality, encourage credit card members to use their card, and, remind personal loan clients to spend reasonably and on what is important to their daily life. These have proven to contribute to our operation to an extent. This is reflected in our operational results for the nine months of 2007. We have a total member base of 1,924,434 accounts. Most new members are from personal loan business, KTC CASH and KTC CASH Revolve. As of September 30th, 2007, total number of credit cards issued is 1,453,270; total number of KTC CASH accounts is 467,575; and, total number of KTC Million accounts is 3,589. Total credit card spending is 15% greater than the same period of 2006. The delinquency rate (30-179 days) of receivables from all businesses is below that of industry’s.” “As for our financial status, as of September 30th, 2007, we have total assets of 44,912 Million Baht or an 8% growth from the end of 2006. Net total account receivable is 42,366 Million Baht or an 8% growth from 39,120 Million Baht at the end of 2006. Our constant portfolio quality management and Bank of Thailand’s requirement of minimum repayment at 10% instead of 5% of outstanding balance have resulted in a less significant increase of our portfolio: net credit card receivables of 28,245 Million Baht, net KTC CASH receivables of 11,288 Million Baht, and, net KTC Million receivables of 2,270 Million Baht. Net profit in nine months is 448 Million Baht which translates to earning per share of 1.74 Baht. Net profit for the third quarter of 2007 is 169 Million Baht or a 28% growth from the previous period of 2006.” “In the third quarter of 2007, we have total revenue of 2,775 Million Baht or a 32% growth from the same period of 2006. Total revenue in the first nine months of 2007 is 7,777 Million Baht or a 35% growth from the same period of the previous year. Revenue from interests plus credit usage fees and revenue from fees constitute 71% and 26% of total revenue. Our cost of fund for this nine-month period has gradually lowered to 4.87% from 5.06% of the first half of 2007. At the same time, our average revenue from interest receivable has risen as a result of the new credit card interest rate of 20% as opposed to the previous rate of 18%. As a result, net interest margin for the nine-month period has increased to 13.1% from 12.3% of the first half of 2007 and from 11.7% at the end of 2006.” “Total expense inclusive of interest expenses and income tax in this third quarter is 2,607 Million Baht or a 7% growth from the previous quarter. Cost to income ratio for the first nine months of 2007 is 52%, down from 56% at the end of 2006 as a result of revenue rising in a greater proportion than administrative expenses as well as lower member recruitment expenses than the same period of 2006.” “As for the performance in the last quarter of 2007, we will focus more on the expansion of regional member bases through our own marketing campaigns and exhibitions. This is because we appreciate the potentials of these markets. Consumers in major provinces are with great spending power. Their lifestyles are becoming more similar to residents of Bangkok, too. However, we will continue to use precaution in approving new members based on their repayment ability. We will also ensure receivables portfolio quality to avoid non-performing loans and to ensure stable source of revenue for the company and for the Thai financial system in the long run.”, said Niwatt in conclusion. For more information, please contact Public and Corporate Affairs Department “KTC” or 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]