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KTC reports 2017 a banner year


Krungthai Card (KTC) achieved a new-high in 2017 – net profit rose 32 per cent, amounting to Bt3.304 billion, well above target compared to 2016.

KTC served 3 million user accounts in its customer database. 
Gross accounts receivable rose 7 per cent to Bt73.488 billion, while NPL dropped by 1.3 per cent. 
The firm’s business model and operating direction in 2018 seeks to be customer-centric, to respond and cater to the needs of its members, and to select differentiated business alliances that would add value to its member database. 
The firm’s aims for 2018 is to generate profit and maintain the same NPL level it had previously established in 2017, expand its account receivable port by at least 10 per cent, and stimulate credit-card spending by at least 15 per cent.
“KTC’s net profit growth rate in 2017 was beyond expectations in the face of various adverse factors, including household debt amid economic recovery, new credit card regulations and administrative measures, accessibility of personal loans, as well as the effects of credit card interest rate cuts,” said president and chief executive Rathian Srimongkol. 
“Despite this, KTC implemented proactive operating strategies to handle such conditions, in order to expand credit card bases to maintain credit quality at a low NPL value, to increase fee income, and to control the increase in operating costs at a minimum value.
“As of December 31, KTC’s net profit rose 32 per cent, to Bt3.304 billion, in comparison to the same period in 2016. Total Credit Card spending amounted to Bt176.777 billion, a 6.9 per cent increase, above industry average growth of 5.2 per cent. Merchant spending amounted to Bt77.884 billion, a 26.3 per cent increase, while the number of merchants totalled at 32,875 locations, a 10.5 per cent increase, catalysed by the joint merchant expansion, installation of Electronic Data Capture devices, expansion of online merchants, implementation of virtual terminal payments, and Alipay merchants.
“The firm has a total asset value of Bt73.636 billion, an 8 per cent increase, compared to the same period in 2016, which valued Bt68.297 billion. Gross account receivable ports totalled Bt73.488 billion with 3 million user accounts, a 3.7 per cent increase compared to the same period last year. 
“This value can be broken down to 2,169,370 credit cards with total credit card receivables value of Bt48.388 billion, a personal loans portfolio of 852,915 accounts, with ending gross receivables of Bt24.757 billion, while NPL experienced a drop from 1.7 to 1.3 per cent compared to the same period last year. 
“NPL for credit cards also experienced a drop from 1.2 per cent to 1.1 per cent, and NPL for the personal loans business drop from 0.9 to 0.8 per cent.”
KTC’s total revenue amounted to Bt19.525 billion, an 11 per cent increase, compared to last year, comprising of interest revenue (including credit usage fees), fee income and bad debt recovery revenue. Net interest margin totalled at 15.13 per cent, similar to last year’s value of 15.12 per cent. Operating cost to income ratio totalled at 27.5 per cent, having decreased from 28.5 per cent of last year. Similarly, cost to income ratio totalled at 36.6 per cent, having decreased from 39.3 per cent of last year. 
Available credit line totalled Bt21.570 billion, comprising of Bt18.03 billion Krungthai Bank credit line, and Bt3.54 billion from other commercial banks. To this end, the firm’s debt to shareholder equity is 4.85, the ratio 10 times lower than the contingency agreement value.

Published : February 14, 2018

By : The Narion