KTC’s 2020 Earnings Slightly Drop by 3.5% to ฿5.3Bn as Fee Income Contracts 11%

Krungthai Card Public Company Limited (KTC) has reported its yearly consolidated financial statement of 2020 through the Stock Exchange of Thailand as follows;

KTC reported a net profit of 5,332 million baht in 2020, decreased 3.46% when compared to the year before.

Total revenue for 2020 was 22,056 million baht, down by -2.5% compared to the same period of last year. Interest income from credit card receivables and personal loan receivables increased by 5.7% (YoY) and 2.8% (YoY) respectively, yet at a slower pace as a result of the COVID-19 pandemic, together with the impact from the reduction of interest rate ceiling following the Bank of Thailand’s debt relief measure.

Meanwhile, fee income (excluding credit usage fee) contracted at -11.0% (YoY) because of the decline in fee income from interchange fee, fee income from cash withdrawal, and fee income from merchant’s acquiring business.

 

With the increase in interest income from both credit card and personal loan of 5.7% (YoY) and 2.8% (YoY), respectively, the company’s total interest income (including credit usage fee) for 2020 amounted to 14,167 million baht, a 4.1% (YoY) growth but at a slower pace than that of 7.3% (YoY) for the first nine months period of this year. This was due to the impact from the reduction in interest rate ceiling for the last 5 months of this year, thus some decline in interest income for the fourth quarter.

However, the company still has a sound member base whose accounts remained active roughly as before and continued to generate continuous interest income. In the meantime, fee income (excluding credit usage fee) for 2020 contracted at -11.0% (YoY) or amounted to 4,478 million baht.

 

Expected credit loss valued 6,605 million baht in total, up 2.7% (YoY), consisting of 4,920 million baht of bad debts and 1,685 million baht of doubtful accounts.

 

Meanwhile, KTC’s total NPL under the TFRS 9 standard for 2020 declined to 1.8% from that of 1.9% in Q3. Allowance for expected credit loss to total loans at the end of 2020 equaled to 8.2%, compared to that of 8.3% in Q3 and NPL Coverage Ratio was higher to 460.4% in this quarter from that of 452.0% in the last quarter.