KTC is satisfied with its consistent strong performance in virtue of the economic recovery from the reopening of the country. The Company revealed consolidated financial statements, announcing a net profit of 3,641 million baht in the first half of the year and a net profit of 1,894 million baht in Q2/2022; an increase of 9.9 percent and 12.7 percent from the same period in 2021, respectively. The gross loan portfolio is valued at 95,069 million baht, a spike of 6.3 percent. Credit card spending during the first 6 months grew by 16.6 percent totalled at 109,782 million baht. KTC implemented plans for budget allocation to expand the number of members across all products into effect and injected marketing campaigns to generate long-term income and profits. The quality of portfolio will be managed in line with income and the financial costs will be controlled at the initial level. If the situation continues to be on the upswing, it is expected that the total loan portfolio will reach over 100 billion baht with higher profits in 2022.
Mr. Rathian Srimongkol, President & Chief Executive Officer, "KTC" or Krungthai Card Public Company Limited, stated, "the Thai economic situation continued to recover due to the declaration of COVID-19 as endemic, the relaxation of measures, and the full reopening of the country. Private consumption was better than expected. The number of foreign tourists has increased. There are also indicators of a better labor market and household income. Likewise, the consumer finance industry and KTC also bounced back. In the first 5 months of this year, KTC accounted for 13.7 percent of credit card receivables compared to the industry, with a ratio of 4.0 percent of personal loan receivables compared to the industry. The volume of credit card spending increased 15.3 percent (18.5 percent in the industry) with a market share of 11.8 percent. It is expected that by the end of 2022, the growth rate of credit card spending may expand by 15 percent from the Company's previous growth target of 10 percent."
"However, KTC will continue to operate its business with cautiousness as planned in various scopes and will closely monitor the situation. In the second half of the year, the Company will focus on recruiting members and adding more value to the credit portfolios of all products. This will be executed by selecting appropriate marketing activities to suit the changing situation and context, which may lead to an increase of marketing costs and additional provisions that will be set according to the increasing portfolio of receivables. KTC will manage financial costs and the non-performing loan (NPL) rate to be close to the same level with higher projections for the 2022 profit target and a total loan portfolio of over 100 billion baht."
"Regarding KTC's first half year performance, as of June 30, 2022, compared to the same period in 2021, KTC had a total net profit according to consolidated financial statements in the first half-year and in Q2/2022 of 3,641 million baht (a 9.9 percent increase)
and 1,894 million baht (a 12.7 percent increase) respectively. The first half year total net profit according to KTC's separate financial statements in the first half-year and in Q2/2022 equaled 3,621 million baht (a 9.5 percent increase) and 1,870 million baht (an 11.7 percent increase), respectively. The total membership base numbered 3.3 million accounts while total loans to customers and accrued interest receivables totalled 95,069 million baht. The total non-performing loan (NPL) ratio was 3.5 percent, comprising 2,525,367 cards in the credit card business, and total loans to credit card customers and accrued interest receivables totalled 61,426 million baht. The amount of credit card spending in the first six months was 109,782 million baht, a 16.6 percent spike (a value that is higher than pre-COVID which was 100,282 million baht in the first half of 2019). NPL for credit card was at 1.2 percent. There are 756,960 accounts in the KTC personal loan portfolio, with loans to personal loan customers and accrued interest receivables of 30,460 million baht. NPL for personal loans debtors totalled 2.8 percent. The lease receivable portfolio was 3,184 million baht, and the receivables of new booking of 'KTC P BERM' and 'Krungthai Leasing (KTBL)' in the first half of 2022 totalled 525 million baht. The receivables tend to increase every month since the beginning of the year."
"KTC remained focused on portfolio quality management which lead to the decrease in bad debts and write-offs. The Company has also balanced its income and expenses. In Q2/2022, KTC had total revenue of 5,735 million baht, an increase of 6.1 percent year-on-year, from increased interest and fee income. Meanwhile, the total revenue for the first half of 2022 was 11,091 million baht, a 2.7 percent increase. Bad debt recovery equalled to 851 million baht in Q2 and 1,708 million baht in the first half of 2022. Total expenses in Q2/2022 were 3,359 million baht, an increase of 2.5 percent, due to increased administrative expenses. At the same time, the expected credit loss and financial costs decreased. The total expenses of the first half of this year were at 6,539 million baht, a decrease of 1.1 percent."
"As of June 30, 2022, the Company had total borrowings of 55,649 million baht, an increase of 4.1 percent. The source of funds came from short-term and long-term borrowings that accounted for 34 percent and 66 percent, respectively. The available credit line was at 26,249 million baht. Cost of fund was at 2.4 percent and debt to equity ratio was at 2.2 times which was lower than the covenant at 10 times."
"Moreover, KTC had consistently assisted the debt load of cardmembers affected by the spread of COVID-19. As of June 30, 2022, the Company has provided assistance to debtors of all statuses according to the circular of the BOT No. BOT.RPD2.C.802/2564, with a remaining balance of 2,182 million baht, accounting for 2.39 percent of the total portfolio."