Bangkok--13 Nov--Krungthai Card
KTC pointed out that within the first nine months its careful business expansion policy for handling unstable economy helped the company generate the revenue of Baht 8,813 Million, which is 13% increment from the same period of last year, the net profit of Baht 420 Million and net receivables portfolio of Baht 46,693 Million. Meanwhile, in the 3rd quarter, the net revenue reached Baht 3,033 Million, which was 9% increment from the same period of last year, and the net profit of Baht 103 Million. For the last quarter, the company still applied the strict policy from selection of new quality members to close control of debt quality. The company intended to make credit card spending a way of spending in everyday life and supported personal loan customers to spend only on necessary items, to create financial discipline and to responsibly pay back the debt.
Mr. Niwatt Chittalarn, President and Chief Executive Officer, “KTC” or Krungthai Card Public Company Limited, revealed, “Because the company closely follows and assesses the economic situations and carefully crafts its business policy to handle the economy fluctuating from domestic factors and international financial crisis, it is able to generate constant revenue. Within the first nine months of 2008, it has the net profit of Baht 420 Million or Baht 1.63 profit per share. This is the result of the gross revenue of Baht 8,813 Million, 13% increment from the same period of last year. The net profit in the 3rd quarter of 2008 hits Baht 103 million. The total member base increases from the end of 2007 when there were 1.94 million accounts to 2.12 million accounts of which new members are 60% credit cards and 40% personal loans. There are total 1,582,390 credit cards, 532,535 personal loans “KTC CASH” accounts and 2,165 self-employed loans “KTC Million” accounts.”
“For the financial status as of 30 September 2008, the company has the total asset of Baht 48,927 Million, 7% increment from the end of 2007. Meanwhile, the net receivables port is equal to Baht 46,693 Million, 8% increment from the end of 2007 and 10% increment when compared with the same period of last year. These are the results of the carefully spending and borrowing of cardholder. Nonetheless, the sum of total card spending still expands 16% when compared with the same period of last year. Moreover, the value of card spending per card per month increases from previously.”
“This comprises net credit card receivables of Baht 33,100 Million, net KTC CASH receivables of Baht 12,244 million, net KTC Million receivables of Baht 885 Million and net circle loans of Baht 465 Million. For the delinquency rate of all business are still low due to the company’s prudent business expansion policy. ”
“Total revenue in the nine-month period of 2008 is Baht 8,813 Million or a 13% rise from the same period of 2007. The increased generally came from interest income including credit usage and fee income, which account for 70% and 25% of total revenue, respectively. For the 3rd quarter, KTC has the gross revenue of Baht 3,033 Million, 9% increment from the same period of 2007. The total expense, inclusive of interest expense and income tax, for the first nine months of 2008 is Baht 8,393 Million or a 15% rise from the previous year. Cost to Income Ratio remains at 50%, the same as the end of 2007.”
“Cost of fund, as a result, has declined from 4.87% at the end of 2007 to 4.51%. The cost of fund increases slightly from 4.49% at the half-year period due to the increase of the market interest rate based on the rising policy interest rate. Therefore, at present the company has to carry the burden of seeking short-term loans at higher market interest rate. Although the interest rate in the financial market starts to rise, the company can still retain its low capital investment. At the same time, the company keeps its average interest revenue level at 18.2% which is close to that of the end of last year, making net interest margin for the nine-month period of 2008 increase to 13.70% from 13.40% at the end of 2007 and from 13.1% relative to the same period of 2007.”
“From the last quarter of this year until next year, it is believed that the economy will still fluctuate due to uncertainty from various factors. As a result, the company will keep its thorough and careful business policy. It will continue to create new member base as before, but will carefully pay attention to the selection of new quality members to the close monitoring of portfolio quality including the study of consumer behavior in depth and in more sophisticated aspects. This is to appropriately fulfill the needs of the market and the consumers during each period of time,” said Mr. 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]