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KTC announces net profit of 132 Million Baht for the 3rd quarter. This massive growth of 223% offsets all losses while leaving a receivables portfolio of 41,661 Million Baht. The firm is pleased with portfolio quality and now engaged in proactive moves both in the credit card and the personal loans markets.


KTC reports net profit of 132 Million Baht for the 3rd quarter of 2012 or a 223% growth over the same period of the previous year. Net profit for the past nine months is 63 Million Baht with all losses sustained in the 1st quarter completely wiped off as a result of more efficient debt collection and more intense receivables portfolio quality control. Net receivables portfolio is at 41,661 Million Baht from 2.12 million accounts. Major moves are planned for both the credit card and the personal loan markets to guarantee the satisfaction and the unbeatable privileges, which members will receive through innovative collaboration with new lifestyle partners. The campaigns are expected to attract new customers while at the same time increase the spending of existing members.


Mr. Rathian Srimongkol, President and Chief Executive Officer, “KTC” or Krungthai Card Public Company Limited, said “We continue to see an overall industry growth of 10% for credit card loan over the first eight months of this year, compared to the same period of the previous year. Non-bank institutions are growing at 12% over commercial banks at 8%. Personal loan business, on the other hand, is growing at 15% with commercial banks surpassing non-bank institutions at 31% and 9% respectively. One of the factors contributing to these is the government policy where domestic spending is encouraged. Consumer loan industry is growing constantly as a result.”


“As for KTC, our performance over the past nine months has allowed us to announce  a net profit of 63 Million Baht. We have been improving the efficiency of our debt collection and close monitoring of receivables portfolio quality. As such, we are able to manage pre-delinquent debts and achieved a second and third quarter performance that offsets losses in the first quarter completely. Third quarter net profit is 132 Million Baht or a 223% growth over the same period of the previous year. Bad debts and doubtful accounts has decreased by over 40% from the lower reserve for doubtful accounts. Receivables portfolio quality is improving for both credit card and personal loan businesses. We can manage our expenses to be more stable as well.”


“We can report our financial status as of September 30th, 2012 with total assets of 46,043 Million Baht and net receivable portfolio of 41,661 Million Baht. Our 2.12 million accounts comprise 1,517,323 credit card accounts with net credit card receivables of 29,685 Million Baht and 606,580 KTC CASH personal loan accounts with net loan receivables of 11,686 Million Baht.”


“KTC has a total revenue of 3,117 Million Baht in the third quarter of 2012, similar to the same period of the previous year. Total revenue from interest income (including credit usage fee) and fee income are 1,972 Million Baht and 788 Million Baht respectively. Total expense, exclusive of income tax, has lowered from 3,044 Million Baht of the previous year by 5% to 2,883 Million Baht. Bad debts and doubtful accounts is now at 661 Million Baht, down from 1,101 Million Baht in the previous year. This is mostly due to fastening write-off for tax benefits. The existing flood provision, however, has still been taken into a consideration as a general reserve as well as economic factors in order to sustain risks that might arise from fluctuated economic in the future.”


“Available credit line of the company at the end of the third quarter of 2012 is 28,160 Million Baht. Net interest margin remains unchanged from the yearend at 13.6% despite the rise of capital cost from 4.9% to 5.1% as we are still capable of bringing average total revenue from interest up from 18.6% to 18.7%. Debt to shareholders’ equity ratio is at 8.3, down from 8.5 of the second quarter and ten times below the bond covenant.”


“KTC will use proactive marketing measures in this last quarter of 2012. We will present privileges through the use of our KTC Forever Rewards points at more locations throughout the country. We are working with leading lifestyle partners to satisfy the different needs of various member groups from mass customer who comprise our solid base and high-end members who spend more through the cards with higher payment capability. Latest,  KTC and KTB together launch “KTC-KTB Precious Plus VISA Infinite” credit card to satisfy various lifestyles of KTB Precious Plus customers as well. KTC Cash Revolve will continue to be the main product for the personal loan business as it brings our customers much financial flexibility. In order to enhance usage, KTC has launched a program offering half interest rate for customers who qualify the specific criteria for promote spending in the last quarter.”


“We have been restructuring our internal processes from the beginning of this year. Outsourced tasks are reclaimed and the Call Center is now grown into Contact Center. We are also working to improve operational efficiency holistically from end to end. This will help reduce operational expenses. We expect the results to be most notable in 2013 but at the end of this year our operational performance will be positive again,” said Rathian in conclusion.

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