Bangkok--28 Feb--Krungthai Card Net profit of 521 Million Baht, total member base of 1.94 million accounts and earning per share of 2.02 Baht KTC announces performance as of end of 2007: net profit of 521 Million Baht and total revenue of 10,701 Million Baht or 19% and 32% growth over the earlier year respectively, as well as total member base of over 1.94 million accounts primarily due to the growth of credit card and cash revolve portfolios. Greater revenue from credit card business achieved with the raise of interest rate from 18% to 20%. Growth of total revenue exceeds increase in risen sales and managerial expenses. Network of partners help shoulder marketing costs and bring unique and relevant benefits to a wide array of clients. Whereas, the Board of Directors’ Meeting approved the declaration of the dividends to the shareholders at the rate of Baht 1.20 per 1 ordinary share and dividend yield at 5.48%. The firm will continue to make a difference in 2008 and stay at the top of the game with distinctively segmented products, creative marketing campaigns involving the large member base, and, the option of using reward points in place of cash to redeem products and services more quickly and conveniently. Niwatt Chittalarn, President & Chief Executive Officer, “KTC” or Krungthai Card Public Company Limited, said “The economic downturn and other elements in the previous year have made consumers more cautious in their spending. Although we are affected by heightened competition, our proactive marketing strategies have led to a positive handling of the recess, an efficient management, and, the lowering ratios of total managerial expenses and interest payable to total revenue down from the previous year. Additionally, we have created added value by encouraging credit card and personal loan members to spend rationally and on what is necessary for their daily life as well. Our revenue is on the rise with net profit of 521 Million Baht from 439 Million Baht in 2006. Member base grew by 10% from 1.77 million accounts to 1.94 million accounts in 2007 despite the fact that we have not really focused on expanding this member base. The majority of new members are credit card and KTC CASH Revolve members. As of the end of 2007, there are a total of 1,466,820 credit cards, 473,088 KTC CASH accounts and 3,220 KTC Million accounts.” “Four key elements contributed to our success in 2007. Firstly, creative marketing strategies implemented with the cooperation of major partners like gas stations, discount stores, department stores, hospitals, restaurants, travel agents, insurance companies and telecommunication retailers. These are the channels through which we have pitched relevant products and services and engaged in segmentation marketing which takes the requirements of different groups of consumers into consideration and distinguish us from the competitors. Secondly, the use of database as a tool to understand spending behaviours of KTC members have enabled us to bring the right benefits to the each group of clients and to predict their future needs. Thirdly, our executives who are visionary, experienced, intellectually independent, flexible and capable of quickly responding to the changes in the industry. Their decisiveness has made it possible for us to pursue new markets before the competition. Fourthly, good risk management based on periodical analyses of cash flow and liquidity. We have a dedicated team for risk management and financial marketing monitoring. It is therefore possible for us to efficiently manage our finances both in the short and long terms and maintain receivable quality in each business well.” “As for our financial status as of December 31st, 2007, we have total assets of 45,919 Million Baht or a 10% rise from the end of 2006. Net total account receivable portfolio rose by 10% to 43,196 Million Baht from 39,120 Million Baht as of 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 29,834 Million Baht, net KTC CASH receivables of 11,022 Million Baht, and, net KTC Million receivables of 1,799 Million Baht. Net profit for the year 2007 is 521 Million Baht or a 19% growth over 2006. This translates to earning per share of 2.02 Baht. Whereas, the Board of Directors’ Meeting approved the declaration of the dividends to the shareholders at the rate of Baht 1.20 per 1 ordinary share and dividend yield at 5.48%.” “In 2007, our total revenue is 10,701 Million Baht or a 32% rise over 2006. Revenue from interest combined with credit line usage fee and revenue from fees account for 70% and 26% of total revenue. Total expense in 2007, inclusive of interest payable and revenue tax, is 10,180 Million Baht or a 33% growth over the earlier year. The cost to income ratio in 2007 is 50% which is lower than 56% of the earlier year. This is because of the fact that we are still able to generate more revenue than the amount of sales and marketing expenses. Expenses relating to new member recruitment are also down despite the continuously growing member base.” “As for the year 2008, we will turn to even more sophisticated strategies which revolve around distinctively segmented products and the creation of added values for each group of clients. We can do this because of the availability of partners in different industries and the large member base of ours. There will be more marketing campaigns and channels through which members can use even few reward points in place of cash to redeem products and services more quickly. This will reaffirm our status as the provider of comprehensive consumer finance service with clearly different products and services. And, of course, we will continue to approve new members with great care, based on their repayment ability, as well as to practice efficient receivables portfolio management.”, 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]