KTC asserts that it is confident that all core businesses will expand as expected if the economy continues to improve. The Company reveals separate financial statements for Q1/2022, announcing a net profit of 1,752 million baht, a growth of 7.3 percent compared to the same period in 2021, while the total port of receivables has increased past 90,208 million baht. KTC will focus on simultaneously managing its portfolio quality and creating good quality of life for cardmembers in all sectors.
Mr. Rathian Srimongkol, President & Chief Executive Officer, "KTC" or Krungthai Card Public Company Limited, stated, "The Thai economy has a tendency to recover from the relaxation of various control measures including the reopening policy, debt sustainability measures, as well as an economic stimulus that spur economic activities. This has caused a recovery in domestic demand and the tourism sector both domestically and internationally. People began to return to their normal lives, leading to an increase in domestic spending. As expected, this was reflected in the volume of KTC's credit card spending in Q1 of 2022 which grew by 7.9 percent at a value of 52,247 million baht. Moreover, the debtor portfolio expanded. KTC maintained the quality of its port of receivables which led to fewer bad debt write-offs through a management policy that focuses on strictly maintaining the quality of the portfolio to control non-performing loan (NPL) at a consistently low rate. KTC is all set to expand its new customer base in an acceptable risk framework. In the past 3 months, KTC's debt approval rate has gradually increased. If the economic situation is maintained at this level and continues to improve, KTC will be able to achieve its business goals as set out."
"Regarding KTC's Q1 performance, as of March 31, 2022, compared to the same period in 2021, KTC had a total net profit according to the separate and consolidated financial statements of 1,752 million baht (a 7.3 percent surge) and 1,747 million baht (a 6.9 percent surge) respectively. The total membership base numbered 3,263,842 accounts while total loans to customers and accrued interest receivables totalled 90,208 million baht as a result of the acquisition of Krungthai Leasing Company Limited (KTBL). The total non-performing loan (NPL) ratio was 3.6 percent (remained the same with Q4/2021), comprising 2,510,221 cards in the credit card business, and total loans to credit card customers and accrued interest receivables totalled 57,929 million baht. NPL for credit card debtors was at 1.2 percent. Loans to personal loans customers and accrued interest receivables amounted to 29,125 million baht with 753,621 accounts and the NPL for personal loans debtors totalled 2.6 percent. The portfolio of lease receivables was worth 3,155 million baht, and the receivables of new booking of "KTC P BERM" and "Krungthai Leasing" (KTBL) in Q1/2022 increased by 112.6 percent from Q1/2021 and 27.6 percent compared to the previous quarter."
"KTC continues to consider the appropriate balance of income and expenses by controlling financial costs close to the same level and building portfolios with risk levels that are in line with expected income. As a result, the Company has a baseline that generates consistent growth in profit. In Q1/2022, KTC had total revenue of 5,357 million baht, an increase of 0.7 percent from Q1/2021. Income from fees remained similar to the original value and bad debt recovery was recovered by 857 million baht, higher than the same period of the previous year which was at 834 million baht. Total expenses decreased by 3.1 percent after the expected credit loss dropped to 13.2 percent and financial costs declined by 7.4 percent. Meanwhile, operating expenses were up by 5.0 percent and marketing expenses were increased to invest in building a port of receivables aimed to generate income and profits for KTC's businesses in the long run. Moreover, KTC continues to further its policy to assist the debt load of cardmembers affected by COVID-19 in compliance with the Bank of Thailand's measures. As of March 31, 2022, KTC has assisted debtors of all statuses (according to the circular of the BOT No. BOT.RPD2.C. 802/2564) with 2,278 million baht which accounted for 2.63 percent of the total portfolio."
"As of March 31, 2022, the Company had total borrowings of 50,367 million baht, a decrease of 4.9 percent year-over-year. The source of funds came from short-term and long-term borrowings that accounted for 29 percent to 71 percent. Cost of fund was at 2.6 percent and debt to equity ratio was at 2.0 which was lower than the covenant at 10 times. Lastly, the available credit line was at 29,259 million baht."
"In terms of KTC's business growth direction in 2022, the credit card business will focus on expanding with major partners through both new product launches and the development and revamp of co-branded credit cards. KTC has set a target of 10 percent or approximately 220,000 million baht in credit card spending growth. At the same time, the personal loans business will expand its new member base with potential by introducing the "KTC PROUD" Cash Card, targeting people with fixed incomes and those that have a higher income base. It is estimated that the business will grow by 7 percent. In terms of "KTC P BERM" and Krungthai Leasing businesses, KTC has its eyes set to reach a total debtor value of 11,500 million baht through the cooperation with the Krungthai Bank network with more than 900 branches nationwide along with maintaining the high quality of the debt portfolio at the same level. To steer the business to achieve its set goals and gain a higher market share, KTC will carry out more strategic marketing expenses than ever before. It is expected that within 2022, KTC's total loan portfolio will be valued over 100,000 million baht with higher profit. In addition, KTC will focus on developing financial products and services to enhance the quality of life of Thais and elevate the organization to become a leader in the consumer finance business that integrates and shines a spotlight on sustainability at both national and international levels."