KTC third-quarter profit climbs 8.9% to THB2.13bn despite weak demand

Krungthai Card Public Company Limited (KTC) reported an 8.9% year-on-year rise in third-quarter net profit to THB2.13 billion, maintaining earnings growth despite weak purchasing power and an uneven recovery in the Thai economy.

Net profit for the first nine months of 2026 reached THB6.52 billion, while credit-card spending rose 4.7% to THB229.88 billion over the period.

KTC Chief Executive Officer Pittaya Vorapanyasakul said the consumer-finance industry remained under pressure at the end of the third quarter as Thailand’s economy expanded slowly and the recovery varied across sectors.

Households continued to face constraints from high debt and living costs, making consumers more cautious about spending and taking on additional debt. Repayment capacity among some borrower groups also remained fragile, prompting lenders to maintain conservative credit policies focused on asset quality and risk management.

Despite the conditions, KTC maintained its positions across its main businesses. During the first eight months of the year, its share of personal-loan receivables remained at about 4.2%, while its share of credit-card receivables increased from 14.5% a year earlier to 14.6%.

Its share of credit-card spending also rose from 13.1% to 13.3%.

“Economic challenges are not an obstacle to growth if an organisation maintains discipline in risk management and has a deep understanding of consumer behaviour,” Pittaya said.

She said KTC’s continued earnings growth reflected the strength of its member base, the quality of its loan portfolio and its ability to adjust to changing market conditions.

KTC prepares digital expansion in insurance brokerage

KTC is also preparing information for an application to register electronic activities for its insurance brokerage business, which would enable it to offer insurance policies through digital channels alongside existing offline services.

The company expects regulatory approval during the final quarter of 2026.

KTC also acquired shares in Win Performance Company Limited, a long-standing debt-collection partner, on August 25, making the company a KTC subsidiary and part of Krungthai Bank’s financial business group.

The acquisition is intended to support KTC’s operating-cost strategy and create future revenue opportunities through cooperation between KTC and other companies within the bank’s financial group.

Credit-card membership rises 8.8%

As of September 30, KTC had 3.87 million member accounts, while total loans to customers and accrued interest stood at THB107.72 billion, up 0.8% from a year earlier.

The group’s non-performing loan ratio was 1.92%.

KTC had 3.16 million credit cards, an increase of 8.8%, with credit-card receivables and accrued interest of THB70.06 billion, up 0.9%. The credit-card NPL ratio stood at 1.21%.

Credit-card spending during the first nine months totalled THB229.88 billion, representing growth of 4.7%.

The personal-loan business had 710,442 accounts, up 0.8%, while personal-loan receivables and accrued interest increased 1.9% to THB36.53 billion. The personal-loan NPL ratio was 2.65%.

KTC’s lease-receivables portfolio fell 30.6% to THB1.13 billion. The company stopped issuing new loans in this category in August 2023 and is now focused on debt collection and managing the quality of the remaining portfolio.

Lower funding costs support earnings

Third-quarter revenue rose slightly by 0.2% year on year to THB6.92 billion. Interest income increased 1.1%, while fee income was up 0.4%.

Total expenses fell 2% to THB4.26 billion, helped primarily by a 16.4% reduction in finance costs and a 1.2% decline in administrative expenses.

The group’s cost-to-income ratio consequently eased to 35.3% from 35.8% a year earlier.

Expected credit losses amounted to THB1.46 billion in the third quarter, up 0.9%. For the first nine months, however, expected credit losses fell 8.9% to THB4.16 billion.

KTC had THB19.88 billion in unused short-term credit facilities, compared with THB9.13 billion of debentures and long-term borrowings due during the remainder of the fourth quarter.

The company said the figures reflected ample liquidity and a low short-term refinancing risk.

Its funding-cost ratio for the first nine months declined to 2.62% from 2.93% in the same period last year, in line with lower market interest rates and cheaper new borrowing.

Finance expenses fell 16.2% year on year to THB1.09 billion.

Personalised services form part of digital strategy

Pittaya said KTC would continue developing products, services and customer benefits through systems capable of providing more accurate and comprehensive personalised offers.

The company is also adjusting its strategy to changing business conditions while seeking to become a fully digital organisation, improve customer experience and maintain greater operational flexibility.

KTC said it would continue to follow Bank of Thailand measures aimed at assisting borrowers and preserving their repayment capacity.

New central-bank service-fee standards introduced this year included a reduction in the fee for credit-card cash withdrawals from 3% to 2.5% of the amount withdrawn, effective from July 1. Bank of Thailand information confirms the introduction of the new fee standards and the 2.5% cash-withdrawal fee now applied by card providers.

KTC has also signed an agreement with Sukhumvit Asset Management to implement a programme equivalent to Debt Clinic by SAM for its retail borrowers, aimed at addressing household debt through structured assistance. The programme began on September 1.

The company said it did not expect that programme or its other debtor-assistance measures to have a material effect on the group’s overall financial performance.