กรุงเทพฯ--16 พ.ค.--Krungthai Card
KTC disclosed its operational achievement in the first 3 months of the year 2008 that it had gross income of 2,912 million baht, a 20% increase from the same period last year. Cost of fund had decreased to 4.62%. Net profit is 217 million baht. Total base of membership has increased from credit card and “KTC CASH Revolve”. Eventhough overall picture of consumer finance business does not have much growth, KTC still aims at maintaining leading position in the industry and keeping its brand strong by using policy of careful expansion of business and to have marketing plan which is different from that of competitor’s. This is by focusing on making use of large customers’ base of 1.97 million accounts and lifestyle segmentation marketing, including finding new business opportunity, encouraging spending through credit card while help shouldering burden of consumers, stressing on giving necessary benefits for daily life expenditures by connecting benefits with our major business partners, including fuel service station, discount store, department store, hospital and travel service.
Mr. Niwatt Chittalarn, President & Chief Executive Officer of “KTC” or Krungthai Card Public Company Limited disclosed that with instability of economic situation and oil prices, the consumers must bear burden of increased cost of living. KTC has policy to expand its business very carefully and try to leverage the most from our member base, by analyzing the demand of customers so that they will have greater convenience and comfort in spending through our card and personal loan services and proceed on to link all benefits in everyday usage with business partners together. At the same time, we are looking for new business opportunity, which is related to consumers’ credit business by paying more importance to specific group of market in order to maintain leadership position and to maintain image of good brand.
In the first quarter of the year 2008, the company has maintained overall performance very close to last year’s. The company recorded other income from being a member of VISA Inc. since VISA has been listed in the New York Stock Exchange. In the case of deducting the other income, KTC would have total revenue of 2,798 million baht or a growth of 15% compared to the same period last year.
KTC reported the net profit of 217 million baht for first three months period ended March 31, 2008 from 136 million baht in the same period of the year 2007 and has profit of 0.84 baht per share. Member base is in total of 1.97 million accounts, increasing by 2% from the end of the year 2007, of which new members come from members of credit cards and “KTC CASH Revolve”. KTC has 1,493,860 accounts of credit cards, 479,639 accounts of “KTC CASH” and 2,810 accounts of self-employed loans “KTC Million”.
“As of March 31, 2008, the company has total assets of 45,611 million baht, slightly decreased from 45,919 million baht at the end of the year 2007 while total net account receivables is 42,840 million baht, decreased from 43,196 million baht at the end of the year 2007, consists of net credit card loans of 29,989 million baht, circle loans of 510 million baht, net KTC CASH personal loan of 10,930 million baht and self-employed loan, KTC million of 1,410 million baht. Total portfolio decreases slightly due to the change of minimum payment rate from 5% to 10% this led to combined with lack of confidence in economic condition in part of consumers which grow more careful in spending and slow down in creating debt. This had made not much increase of portfolio amount by 7% comparing with the same period of the year 2007”
“The company has total revenue in the first quarter of the year 2008 of 2,912 million baht, increased by 20% from the same period last year 2007. In part this is a result of other income from status that KTC is member of Visa Inc. who was listed in the New York Stock Exchange. KTC had the Cost to Income Ratio (after adjusting the extra income from VISA) of 49% for the 1st quarter 2008, decreased from 50% at the end of 2007. It was a result of having higher growth in revenue compare to a growth of operating expense. In case of deducting the other income, KTC would have a growth in total revenue of 15% compared to same period of last year. The interest income including credit usage fee the first quarter of 2008 was 1,991 million baht maintained at the same level from the last quarter of 2007, however, it grew by 17% from same period of last year. Cost of fund has declined from 4.87% at the end of 2007 to 4.62% this quarter; as a result of refinancing higher rate (4.4%-5.5%) bonds with a 4.1% interest rate bond. The reasons of the decrease also were a lessening in total borrowing and well managing the bond portfolio. KTC had a higher average interest received due to a lift up in the interest rate charged on credit card to 20%, which results in an increase in Net Interest Margin from 13.40% to 13.89%.
“However, KTC will sustain its financial capability in maintaining continuing stream of income and shall be looking for opportunity to expand business and create profitable marketing campaigns. We will strengthen our leadership position in rewards point redemption scheme which is easier and faster with more product choices and service selection i.e., points for charity or points for installment payment. At the same time, the company will pay careful attention to approval criteria and process of credit cards and loans with greater consideration in ability for repayment in part of customer and efficient portfolio management.” Mr. Niwatt conclusion.
For more information, please contact
Public and Corporate Affairs Department, “KTC” or Krungthai Card Public Company Limited
Kandtharat Chermchitphong Tel. 0-2828-5057
Suchada Weerasakulrak Tel. 0-2828-5732
Fax. 0-2828-5046
E-mail: ktc_pr@ktc.co.th