Thitikorn expects lower net this year
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Slower economic growth in the latter half of the year will mean auto-finance company Thitikorn's net profit is lower than last year even though it still expects revenue growth of 10 per cent.
In 2012, Thitikorn recorded net profit of Bt712.11 million, company director Prapol Pornprapa said.
He said the company had revised its financial-result forecasts when it saw the market slow down in the third quarter, with an expectation of continued slow growth in the final quarter.
However, it will try to grow its revenue by 10 per cent for the full year.
Thitikorn reported revenue of Bt1.9 billion and net profit of Bt309 million in the first half. That compares with last year’s total revenue of Bt3.6 billion and net profit of Bt712.11 million.
Currently, the company has outstanding instalment loans worth Bt9.5 billion, 85 per cent for motorcycles and the rest for cars. Its rate of non-performing loans is 3.4 per cent.
“We have continued to keep our NPL rate below 5 per cent,” he said.
Despite expectations of lower net profit this year, the company has continued to invest in expansion. It opened five new branches in the first half and will open five more before the end of the year.
Thitikorn also plans to open branches in Asean countries. It plans first to apply for a licence to do business in Indonesia, Prapol said.
