Higher Income from Credit Card and Personal Loan Push KTC’s 1Q19 Profit to Jump 31%!

Krungthai Card Public Company Limited (KTC) has reported its 1Q19 consolidated financial statement through the Stock Exchange of Thailand as follows:

KTC stated that a net profit of THB 1,589 million for the operation in the first quarter of 2019, increased 31% compared to the same period of the previous year of THB 1,209 million. This was due to the ongoing capability in generating higher income from both credit card and personal loan businesses. Income from bad debts recovery also continued to increase. In addition, financial expense along with bad debts and doubtful accounts were declined. Meanwhile, the rise in administrative expense was at a much slower pace than the increase in total revenue. Hence, KTC’s overall profits remained continuously growing.

Total interest income for the first quarter of 2019 grew at 9% YoY, higher compared to the same period of last year which grew at 3%. This was due to the increase in interest income from both credit card and personal loan businesses. KTC had not just consistently expanded its member base but continuingly grown in its total receivables from both businesses. Moreover, fee income (excluding credit usage fee) was up by 8% (yoy). Therefore, total revenue, amounted to THB 5.574 million, increased by 9% (yoy) from the first quarter of 2018.

 

NPL for both credit cards and personal loans increased slightly. KTC has consistently attributed to the importance of its receivables portfolio’s quality. The company had total NPL of 1.18%, down from that of 1.34% for the same period of last year but slightly up from that of 1.14% at the end of last year. NPL of credit cards and personal loans for the first quarter was 1.04% and 0.78% respectively.