KTC’s 2Q20 Profit Slips by 13% after Recording Lower Fee Income

Krungthai Card Public Company Limited (KTC) has reported its consolidated financial statement of 2Q20 through the Stock Exchange of Thailand as follows;

KTC reported a net profit of 1,149 million baht in 2Q20, decreased 13.16% when compared to a net profit of 1,323 million baht in 2Q19.

Total interest income (including credit usage fee) for the second quarter and for the first half of 2020 grew at 9.3% (yoy) and 10.0% (yoy) or amounted to 3,632 MB and 7,247 MB, respectively whereas fee income (excluding credit usage fee) contracted at 20.4% (yoy) and 12.3% (yoy) or equaled to 969 MB and 2,152 MB, respectively.

For the first five months of 2020, KTC’s credit card spending contracted at 10.7% and so did that of the industry at 14.2%. By monthly comparison for the second quarter of this year, the rate in April and May contracted to 40.1% and 27.6% respectively, while KTC’s credit card spending in April and May contracted at 36.0% and 22.4%. It appears that the contraction of credit card spending continued to ease, in which the credit card spending in June contracted at 4.5%.

However, KTC’s credit card spending contraction has been relaxed continuously due to the forbearance program of the government, as well as the behavior of consumers that started to adjust and resume their normal card spending. For the first half of 2020, KTC’s credit card spending decreased by 9.6% or totaled to 90,613 MB.

Expected credit loss (bad debts and doubtful accounts) valued 3,392 MB in total, consisting of 376 MB from bad debts and 3,016 MB from doubtful accounts.