Despite the challenging economic conditions and household debt situation, KTC has demonstrated resilience. KTC has adjusted its work processes to enhance efficiency, maintain portfolio quality, and increase market share. KTC and its subsidiaries' net profit was 5,549 million baht in the past nine months. Our objectives remain focused on maintaining portfolio quality and continuing our cooperation with the government sector to assist borrowers and those affected by the recent flooding.
Mrs. Pittaya Vorapanyasakul, President & Chief Executive Officer, "KTC" or Krungthai Card Public Company Limited, stated, "Private consumption slowed down due to uncertain economic conditions. In addition, the debt repayment ability of vulnerable households decreased due to slow income recovery. All of these factors affect the overall consumer finance industry. However, KTC has still been able to maintain its portfolio quality to be within the target range. The credit card portfolio somewhat slowed down partly due to an increase in the minimum payment rate, but the credit card spending volume continues to grow well. The personal loan portfolio continued to expand gradually while the NPL coverage ratio remained strong. KTC has adjusted work processes to be flexible and ready to cope with the changing market landscape. The Company focuses on maintaining portfolio quality, which has always been the foundation of KTC's business operations. It enables us to continuously generate better operating results, as reflected by the NPL Ratio, which is still within the specified target rate. The Company is confident that profit will increase continuously."
"KTC cooperates with the government sector and continuously provides various measures to assist debtors in response to the Bank of Thailand Notification announcement regarding responsible lending by granting loans responsibly and fairly. KTC grants credit per borrowers' ability to repay and must not cause borrowers to have an unreasonable increase in debt from the original burden. The Company also assists Severe Persistent Debt (SPD) borrowers, effective April 1, 2024. Currently, KTC borrowers have participated in the program, and the impact on actual interest income was only 1.7% of the estimated total impact value of 18 million baht per month if all eligible KTC borrowers participated in the program. Furthermore, measures have been implemented to aid borrowers affected by the flooding in areas declared a disaster zone. Borrowers with normal status or the principal or interest has not been overdue for more than 30 days from the date of notification of intent to participate in the measure can apply until November 30, 2024. KTC expects that assisting according to those measures will not significantly impact KTC and its subsidiaries' operations."
"KTC and its subsidiaries' net profit in Q3/2024, compared to the same period in 2023, equaled 1,919 million baht (a 3.4% increase). Total revenue equaled 6,890 million baht, a 6.6% increase from the same period last year, mainly from increased fee income and recovery income from quicker write-offs. Meanwhile, total expenses increased by 8.5%, equal to 4,524 million baht, mainly from increased fees and services in response to transaction volume, and increased marketing expenses from credit cards' promotional campaigns. In addition, expected credit losses (ECL) increased from reserves according to the portfolio quality and quicker bad debt write-offs according to the new policy effective January 1, 2024. The cost of funds also increased in response to higher interest rates in the financial market."
As of September 30, 2024, compared to the same period in 2023, total membership base numbered 3,445,286 accounts while total loans to customers and accrued interest receivables equaled to 106,183 million baht (a 0.5% decrease); the NPL Ratio was 1.93%, comprising of 2,758,150 cards in the credit card business (a 5.4% increase), and total loans to credit card customers and accrued interest receivables of 69,093 million baht (a 0.2% decrease). NPL for credit cards was at 1.30%. Credit card spending for the first nine months of 2024 was 211,459 million baht (a 10.0% increase). There are 687,136 accounts in the KTC personal loan portfolio (a 3.9% decrease), with loans to personal loan customers and accrued interest receivables of 34,806 million baht (a 2.1% increase). NPL for personal loans portfolio was at 2.21%. "KTC P BERM CAR FOR CASH" receivables totaled 2,959 million baht. KTB Leasing Company Limited (KTBL)'s lease receivables equaled 2,284 million baht (a 32.2% decrease) as KTBL has stopped granting this type of loan since August 2023. KTC is currently focusing on debt collection and managing the quality of existing portfolios.
The group's total borrowings equaled 60,054 million baht, comprising 35% of short-term borrowings (including loans and debentures due within one year) and 65% of long-term borrowings. The debt-to-equity ratio was 1.78 times, which decreased from 2.07 times in the same period in 2023 and was lower than the debt covenants, which were ten times. The available credit line was 28,201 million baht (short-term 23,201 million baht and long-term 5,000 million baht). The loans and debentures due in Q4/2024 equal 5,245 million baht. The cost of funds for the first nine months of 2024 was 2.9%, up from 2.7% in the same period in 2023 due to higher interest rates in the financial market.