KTC’s Low NPL and 10% Jumps in Card Spending Posts 7.5% Increase to 2019 Net Profit!

Krungthai Card Public Company Limited (KTC) has reported its yearly financial statement of 2019 through the Stock Exchange of Thailand as follows:

In 2019 KTC net income increase 7.5%, and the company achieved its portfolio growth target at 9.8% reinforcing revenue growth from the previous year. Moreover, credit card receivables grew 10.9%, the highest growth in 3 years since January 2017. Credit card spending grew continuously by 10.6% in the 11 months of 2019. Consequently ,total revenue was 22,625 million baht, increased from 21,198 million baht in 2018 or increased by 6.7% YoY.

Although personal loans portfolio growth was 7.9% below target, the company was able to increase its member base as well as maintaining NPL at the low level.

Financial expense was maintained at the same level, while operating expense increased slightly at 2.6%where the highest increase was marketing expense at 11.5%. However, the growth in portfolio and membership bases resulted in higher allowance and bad debt, which led to higher bad debt and doubtful accounts.