KTC posts the 2023 net profit of the Company's consolidated financial statement and its subsidiaries of 7,295 million baht, increased by 3.1% from the same period in 2022. Total receivables portfolio grew 7.8% from the same period in 2022 amounted to 112,346 million baht, thanks to gradually recovering economy in the country together with private consumption. This year business strategic plan continues focusing on growing receivables portfolio in parallel with asset quality controlling at an appropriate and acceptable risk level. In addition, KTC continues implementing various projects to assist long-term debtors in accordance with the Bank of Thailand's guidelines for fair lending. As of December 31, 2023, the Company has provided assistance to debtors of all statuses amounted to 1,833 million baht.
Mrs. Pittaya Vorapanyasakul, President & Chief Executive Officer, "KTC" or Krungthai Card Public Company Limited, stated, "The overall consumer finance industry is continuously expanding due to improving demand of consumption expenditure and consumer confidence. KTC's credit card receivables for the 11 months of 2023 accounted for 15.1% compared to the industry. The market share of credit card spending volume equaled to 12.2%, increased from the same period in 2022, while personal loan receivables (excluding car title loan) accounted for 6.3% compared to the industry."
"In 2023, KTC's credit card spending volume grew 11.4% and total receivables portfolio grew 7.8%. Credit card portfolio grew 7.2% in response to increasing credit card spending volume, resulting from consumption spending demand. Likewise, personal loan portfolio grew 7.5%, where "KTC PROUD" cash card grew 4.4% and "KTC P BERM Car for Cash" new booking equaled to 2,590 million baht."
"KTC's performance as of December 31, 2023, compared to the same period in 2022, KTC had a total net profit for the year 2023 according to consolidated financial statements 7,295 million baht, a 3.1% increase. The total membership base numbered 3,358,926 accounts; total loans to customers and accrued interest receivables or total receivables portfolio equaled to 112,346 million baht, a 7.8% increase; NPL Ratio (% of total NPL) was at 2.2%. Credit card business had a total of 2,637,183 cards; loans to credit card customers and accrued interest receivables equaled to 74,441 million baht; credit card spending volume for the year 2023 was 265,383 million baht, a 11.4% increase; NPL for credit card was at 1.1%. Personal loan business had a total of 721,743 accounts, with loans to "KTC PROUD" customers and accrued interest receivables of 30,597 million baht. The receivables of "KTC P BERM Car for Cash" equaled to 2,287 million baht. NPL for personal loans was at 3.0%. The lease receivables amounted to 3,189 million baht. KTC has stopped granting this type of loan since August 2023 to manage the portfolio quality and debt collection after seeing signs of increasing bad debts."
KTC's total revenue compared to the same period in 2022 showed a growth of 9.4%, mainly from interest income and fee income. Meanwhile, total expenses increased by 14.0%, mainly from an increase of operating expenses and fee expenses in response to increased transaction volume. Expected credit losses (ECL) increased in response to an increase of provisions. Cost of fund increased in response to higher interest rates in the financial market.
As of December 31, 2023, KTC's total borrowings equaled to 66,404 million baht, increased by 7.7% from the same period in 2022 and comprising of short-term borrowings (including loans and debentures due within one year) 32.9% and long-term borrowings 67.1%.
Total short-term credit line amounted to 29,371 million baht (including KTB credit line of 19,061 million baht) with utilized short-term credit line of 4,981 million baht. As a result, the available credit line was at 24,390 million baht. Debt to equity ratio was at 2.15 times, decreased from the same period in 2022 at 2.22 times and lower than the debt covenants at 10 times. In 2023, cost of fund was at 2.7%, increased from 2.4% in 2022 in response to higher interest rates in the financial market. Likewise, the yield on loan was at 14.8%, increased from 14.6% in 2022 due to the growth of the total portfolio. Thus, the net interest margin in 2023 remained at the same level at 13.2%.
"In 2024, it is projected that the economic expansion rate will improve in accordance with the expansion of the export sector and the continued recovery of the tourism sector. As such, private consumption and spending tend to increase. KTC targets to improve operating results continuously in parallel with expanding total receivables portfolio under appropriate and acceptable risk level. The Company also targets to grow 3 main businesses: credit card business; "KTC PROUD" cash card and "KTC P BERM Car for Cash". Furthermore, the Company will also promote the MAAI BY KTC business, a CRM service business, together with developing 3 main components: People, Process, and Technology to enhance product and service efficiency."
"In response to Bank of Thailand Notification No. SorKorChor 7/2566 regarding to Responsible Lending (RL), KTC has implemented measures to assist long-term debtors as follows: increasing the credit cards minimum installation payment rate from 5% to 8%, which is effective from January 1, 2024 - December 31, 2024. KTC believes that most debtors will be able to pay the higher minimum payment rate. In case some debtors cannot pay, the Company provides various assistance guidelines to debtors. The Company will also propose assistance guidelines for non-NPL debtors, which is a pre-emptive DR from the beginning when there are signs that debtors are about to encounter problems in repaying their debts at least 1 time so that they can pay back the debt and it will not become NPL. The Company will also offer assistance guidelines to NPL debtors quickly at least once, especially before taking legal action, transferring debt, terminating contracts or seizing assets. Those assistance guidelines will be considered in accordance with the debtor's ability to repay debt where it will not cause them too much burden from the original burden."
"However, KTC is confident that providing assistance according to those guidelines will not have any significant impact on KTC's operations. Furthermore, the Bank of Thailand guidelines regarding to persistent debt (PD) which will be effective in April 1, 2024 will lower KTC's interest income approximately 18 million baht per month, if all eligible KTC debtors participate in the program. Regarding the progress of Risk-Based Pricing (RBP), it has to wait until mid-2024 where the testing process will be launched. The Debt Service Ratio (DSR) has not yet been specifically opened for a hearing. According to the Bank of Thailand's original plan, it is expected to be effective in 2025 and the Bank of Thailand will reassess the economic condition once again."
"KTC is still implementing various projects to assist debtors in accordance with the Bank of Thailand's guidelines for fair lending. As of December 31, 2023, KTC has provided assistance to debtors of all statuses amounted to 1,833 million baht, accounting for 1.7% of the total receivables portfolio."