Bangkok--14 Aug--KTC KTC declared half-year profit of Baht 318 Million and earnings per share of 1.23 Baht. Member base now larger than 2.04 million accounts. KTC discloses its performance for the first half of 2008: total revenue of Baht 5,780 Million or a 16% rise from the same period of the previous year, cost of fund had declined to 4.49%, net profit of 318 Million Baht, total receivables of Baht 44,790 Million. KTC is able to grow its membership base despite economic downturn, rising cost of living and decreased consumer spending. Lower than industry delinquency rate is achieved with careful business expansion policy which focuses on brandbuilding, portfolio quality and innovative marketing strategies. Existing members are retained and new prospect are attracted with lifestyle segmentation initiative. Members are encouraged to spend on KTC card while at the same time assisted by privileges offered in cooperation with major business alliances. Multiple channels offered to ensure utmost customers convenience. Niwatt Chittalarn, President & Chief Executive Officer, “KTC” or Krungthai Card Public Company Limited, said “The prolonged economic slowdown is having impacts on entrepreneurs and consumers alike. With increased cost of living, consumers become more prudent with their spending. We have been following the situation closely and adjusting our strategies and policies accordingly. Performance-wise, our growth is still on the rise. Our net profit in the first half of 2008 is Baht 318 Million or a 14% rise from the same period of the previous year. This is because we benefited from VISA Inc. listing in the New York Stock Exchange in the first quarter. Earnings per share is at 1.23 Baht. Net profit for the second quarter of 2008 is 101 Million Baht. Total membership base of 2.04 million accounts or a rise of 5% from end of 2007. New members are mostly credit card and KTC CASH Revolve. Presently, there are 1,532,877 credit card accounts, 504,529 personal loans accounts “KTC CASH” and 2,491 self-employed loans accounts “KTC Million”. “With regard to our financial status as of June 30, 2008, total assets of Baht 46,943 Million over Baht 45,919 Million at the end of the year 2007. Net total account receivables is Baht 44,790 Million, decreased from Baht 43,196 Million at end of 2007. This comprises net credit card receivables of Baht 31,608 Million, net KTC CASH receivables of Baht 11,566 Million, net KTC Million receivables of Baht 1,128 Million and net circle loans of Baht 487 Million. The reason why total receivables slightly increased is because the regulatory change of minimum credit card payment rate from 5% to 10%. That, coupled with lack of confidence in the economy, has made consumers more prudent with their spending and loans. Total receivables increased only by 4% from end of 2007.” “Total revenue in the first half of 2008 is Baht 5,780 Million or a 16% rise from the same period of 2007. The increase generally came from interest income including credit usage and fee income, which account for 69% and 24% of total revenue, respectively. In this period, KTC recorded growth of 15% and 10% for interest income including credit usage and fee income, correspondingly, compared to the same period of 2007.” “Total expense, inclusive of interest expense and income tax, for the first half of 2008 is Baht 5,463 Million or a 16% rise from the previous year. Cost to income ratio for the first half of 2008 after adjustment of special VISA transaction is 51% which is slightly increased from 50% at the end of 2007. It was a result of having a reward point redeeming policy to boost up spending.” “By raising the portion of short-term loan, KTC was able to take advantage of the low interest rate at the beginning of the year. Besides, KTC has refinanced a bond matured in the 1st half of 2008 with a lower interest rate bond. Cost of fund, as a result, has declined from 4.87% at the end of 2007 to 4.49%. KTC gives priority to liquidity as well as diversification source of funding. Having a higher average interest received due to a lift up in the interest rate charged on credit card to 20% resulted in an increased in Net Interest Margin from 13.40% to 13.76%.” “We will continue to monitor political and economic situations very closely, together with in-depth and complex consumer behaviour study, in order to develop appropriate strategies and marketing plans. As before, we remain committed to present our members with innovative privileges and to identify new business opportunities in order to ensure that our current and future clients will be entitled to only what is best. We will pay careful attention to approval criteria and process of credit cards and loans with great care and manage our portfolio quality even more efficiently as well.”, 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]