KTC points out that the value of the total loan portfolio increased to 112,346 million baht, following the strategy of building a growth portfolio – debt quality screening – debtor relief.
KTC reveals the operating results of the company and its subsidiaries in 2023. Net profit is 7,295 million baht, up 3.1% compared to the same period in 2022. The total loan portfolio is worth 112,346 million baht, in expansion of 7.8% compared to the same period in 2022, benefiting from the gradual recovery of the Thai economic situation. along with supporting factors from private consumption Within this year’s corporate strategic plan Will continue to focus on the loan portfolio to grow sustainably. as well as quality control of the loan portfolio. Screen debtors with appropriate and acceptable risk levels. Including advancing measures to provide assistance to long-term debtors in accordance with the Bank of Thailand (BoT) announcement, as well as fair management of credit provision. Providing assistance to debtors of all states as per BoT guidelines. amounting to 1,833 million baht at the end of 2023
Ms. Pittaya Worapanyasakul, Chief Executive Officer of “KTC” or Krungthai Card Public Company Limited, said: “The overall picture of the consumer credit industry is still expanding. Consumer demand and consumer confidence remain at a good level. KTC has a credit card receivable rate of 15.1% compared to the industry for 11 months of 2023. The company’s card spending volume market share is 12.2%, up from the same period of 2022, and there is a percentage of personal credit loans (excluding loans with vehicle registration guarantee) compared to the industry at 6.3%.”
“In 2023, KTC recorded a card spending volume expansion rate of 11.4%, with the total value of the loan portfolio expanding by 7.8%. The KTC credit card portfolio also grew by 7.2% in line with the spending volume. through cards that increased based on demand for daily spending Meanwhile, the total personal loan portfolio grew by 7.5%, with the “KTC PROUD” ATM card ” growing by 4.4% and the total amount of new debtors “KTC Pee Bem, Money Changer” valued at 2,590 million baht.
“KTC operating results as of December 31, 2023 compared to the same period in 2022, consolidated balance sheet for 2023, net profit of 7,295 million baht, an increase of 3.1%, with a total member base of 3,358,926 accounts , loans to debtors and interest accrued. The total loans received or the total loan portfolio was valued at 112,346 million baht, up 7.8%. The ratio of non-performing loans to total loans of the group (% NPL ) was 2.2%, divided into a portfolio of 2,637,183 members of credit cards, loans to card debtors. The credit and interest accrued amounted to 74,441 million baht. The spending volume of cards in 2023 is 265,383 million baht, an increase of 11.4%. NPLs for credit cards are 1.1%. KTC personal loans members’ portfolio is 721,743 accounts, divided into loans to debtors of the card.Withdraw cash from “KTC Proud” and the accrued interest is 30,597 million baht. Loans to debtors of “KTC Pee Bem Car Exchange Money” amount to 2,287 million baht. NPL for personal loans is at 3.0% for loans to borrowers under installment sales contracts worth 3,189 million baht, KTC has stopped granting this type of loan from August 2023 to manage portfolio quality loans and debt collection. Because we have seen signs of an increase in bad debts.”
KTC’s total income increased compared to the same period in 2022 by 9.4% from interest income and fees. Total expenses increased 14.0% due to increases in core administrative expenses and fees paid for increased transaction volumes. Expected credit losses (ECL) increased due to higher provisions. and financing costs that increase in line with rising interest rates in the financial market.
As of December 31, 2023, the Group’s total loans amounted to 66,404 million baht, up 7.7% from the same period last year. Divide the structure of financing sources into short-term loans. (Including portions of overdue loans and bonds
Payment within one year) 32.9% and long-term loans 67.1%.The total short-term credit lines from financial institutions (Total Short-Term Credit Line) amount to 29,371 million baht (including Krung Thai Bank credit lines 19,061 million baht). The use of short-term credit lines amounts to 4,981 million baht, with a total credit limit of 24,390 million baht. The debt-to-equity ratio was 2.15 times, decreased from the previous year-end of 2.22 times, lower than the debt covenants of 10 times in 2023. KTC has financing costs of 2.7%. , increasing from 2.4% in 2022 in line with rising market interest rate conditions. At the same time, the loan yield was 14.8%, up from 14.6% a year earlier due to growth in the total portfolio. As a result, the net interest margin in 2023 will remain at the same level of 13.2%.
“In 2024, many parties predict that the economic growth rate will improve. This follows the expansion of the export sector and the continued recovery of the tourism sector. Therefore, it is likely to be a driving force for private consumption moving and increasing spending. KTC aims to have continuously improved operating results. As well as taking care of the total portfolio of debtors to expand further. Under adequate risk tolerance and aims to grow in 3 main businesses: Credit card business ATM loans “KTC PROUD” and “KTC Pee Bem Car Exchange” will also promote “My by KTC” business (MAAI by KTC ), which provides safety management systems. to expand more Together with the development of 3 main elements: people, processes and technology. to increase the efficiency of the product and service”
“Also, in response to the BoT announcement. In NBTC 7/2023 on criteria for responsible and fair lending (RL), KTC also provides measures to assist long-term debtors, such as increasing the minimum installment payment rate for credit cards from 5%. 8%, effective for the accounting period January 1, 2024 to December 31, 2024. KTC believes that most borrowers will be able to pay the higher minimum payment. But if there are debtors who cannot pay The company has several approaches. in debtor assistance It will also propose guidelines to provide assistance to non-NPL debtors, i.e. preventive debt restructuring (Pre-emptive DR) from the outset when there are signs that debtors are about to encounter problems in repaying their debts. that the debtor can pay the debt. Do not become a non-performing debtor (NPL) and the company will offer assistance guidelines to non-performing debtors (NPL) at least once, especially before taking legal action, transferring debts, terminating contracts or seizing assets. that provides assistance to such debtors. The company will evaluate it based on the debtor’s ability to repay the debt. and not cause the debtor to have an unreasonable increase in the debt burden relative to the original debt burden.”
“However Providing assistance under these criteria KTC has considered and believes that there will be no significant impact on the overall operations of the company. Furthermore, the BoT assistance guidelines for debtors with chronic debt problems (persistent debt: PD) will come into force effective from April 1, 2024 onwards. From the impact assessment if every eligible borrower joins the project It will impact interest income by decreasing by around 18 million baht per month. As for progress on the idea of borrowers paying the risk-based interest (Risk-based pricing: RBP), there is still time to open tests in mid-2024 and the case for determining the proportion of debt burden to income (Debt Service Ratio: DSR) There has not been a specific hearing yet. According to the BoT’s original plan, it should come into force in 2025. The BoT will reassess the economic situation.”
“KTC has also implemented several projects in the past. Provide assistance to debtors as per BoT guidelines. In fair credit supply management, information as of December 31, 2023, KTC has provided assistance to debtors in all states in the amount of 1,833 million baht, accounting for 1.7% of the total debtors’ portfolio.
