Bangkok--14 Aug--KTC
KTC disclosed that in the 2nd quarter of this year, the company earned 3,095 million Baht of total income, an increase of 8% while the net profit was 100 million Baht which was as the same level as first quarter of this year and the same quarter in 2008. The company has member base at 2.15 million accounts while the bad debts and provision for doubtful accounts dropped by 10%, compared with the previous quarter. The revenue of the first half of this year was 6,209 million Baht, an increase of 7%, compared with the same period last year. The value of receivable portfolio dropped to 46,775 million Baht as a result of restricted control on loan quality and new members. The company’s management is confident that business ahead will continue to be positive while the fund raising plan through the issuance of debenture was well responded from the public.
Mr. Niwatt Chittalarn, President & Chief Executive Officer of “KTC” or Krungthai Card Public Company Limited said “The overall performance of the company in the 2nd quarter of 2009 was very similar to that in the previous quarter. The company earned the total income of 3,095 million Baht, an increase of 8%, compared with the same period of last year. The net profit in the past 4 quarters was an average of 100 million Baht while the net profit in the first half of this year was 202 million Baht.”
“Moreover, the company received very good support from the recent public offering debenture. The total value of long-term debentures issued by the company in the first half of the year was over 8,000 million Baht. As a result, the available credit line was at 17,640 million Baht and the total borrowing was amounted to 40,542 million Baht, a decrease from that of 43,338 million Baht in 2008.”
KTC’s President and CEO also said “As of June 30, 2009, our company’s total assets was 48,874 million Baht or a decrease from 51,899 million Baht at the end of 2008 while the net account receivables was 46,775 million Baht, a decrease from 48,661 million Baht at the end of 2008 due to current economic situation where consumers are more cautious in their spending. The total membership base of 2.15 million accounts mainly consisted of 1.63 million of credit cards. The net credit card receivables was 35,028 million Baht while the number of KTC CASH customers was 513,936 accounts. The net “KTC CASH” receivable was 10,979 million Baht and that of “KTC Million” or self-employed loans was 364 million Baht.”
Niwatt further said that “The company’s income in the first six-month of 2009 was 6,209 million Baht, an increase of 7% compared with the same period of 2008. The increase came from interest income including credit usage fees and fee income represented 71% and 24% of total revenue, respectively. In the first half of the year, the interest income including credit usage fee and fees income grew by 9% and 7% respectively, compared with the same period of 2008. The cost to income ratio in the 2nd quarter of 2009 was 42% or a decrease from 49%, compared with the end of 2008 as a result of budget control and slowdown in marketing activity.”
“A rise in provision was a result of adjusting the historical loss experience by the information on trend and economic conditions that might have an effect on the ability to repay the debt. For the six-month period, bad debt and provision for doubtful accounts was 2,025 million Baht, increased from the same period last year. While the 2nd quarter 2009 was 957 million Baht or a decrease of 10% from the last quarter.” Niwatt said.
“In the second half of this year, our company plans to adjust the business strategy in response to the changing economic condition by focusing on the quality of our portfolio, tightening the approving process and ensuring steady and quality growth. We will also push forward the what so called “Happiness Is All Around” marketing policy by encouraging our credit cards and KTC personal loan customers to have reasonable spending plan, to spend only on necessary items and to learn how to live happily from their surrounding,” said Mr. Niwatt.
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
Email: [email protected]