Bangkok: KTC indicates that the value of the total loan portfolio has expanded by 112,346 million baht, following the strategy of creating a growth portfolio - screening debt quality - helping debtors. KTC reveals the operating results of the company and its subsidiaries in 2023. Net profit is 7,295 million baht, an increase of 3.1% from the same period of 2022. The total loan portfolio is worth 112,346 million baht, expanding 7.8% from the same period of 2022, benefiting from The Thai economic situation is gradually recovering. together with supporting factors from private consumption By this year's business strategic plan Will continue to focus on the loan portfolio to grow sustainably. along with controlling the quality of the loan portfolio. Screen debtors under appropriate and acceptable risk levels. Including moving forward with measures to provide assistance to long-term debtors in accordance with the announcement of the Bank of Thailand (BoT), as well as managing credit provision fairly. By providing assistance to debtors of all statuses according to BoT guidelines, amounting to 1,833 million baht at the end of 2023. Mrs. Pittaya Worapanyasakul, Chief Executive Officer of 'KTC' or Krungthai Card Public Company Limited, said, 'The overall picture of the consumer credit industry is still expanding. Demand for consumption and consumer confidence remain at a good level. KTC has a proportion of credit card receivables compared to the industry for the 11 months of 2023 equal to 15.1%. The market share of the company's card spending volume is 12.2%, increasing from the same period of 2022, and there is a proportion of credit receivables. person (excluding loans with vehicle registration as collateral) compared to the industry at 6.3%.' 'In 2023, KTC had an expansion rate of card spending volume of 11.4%, with the total loan portfolio value expanding at 7.8%. The KTC credit card portfolio also expanded at 7.2% in line with spending volume. through cards that increased from demand for everyday spending Meanwhile , the total personal loan portfolio expanded at 7.5%, with the 'KTC PROUD' cash card growing 4.4% and the total amount of new debtors 'KTC Pee Bem, Money Changer' valued at 2,590 million baht.' 'KTC's operating results as of December 31, 2023 compared to the same period of 2022, consolidated financial statements for 2023, net profit of 7,295 million baht, an increase of 3.1%, with a total member base of 3,358,926 accounts, loans to debtors and accrued interest. Total received or total loan portfolio was valued at 112,346 million baht, growing 7.8%. The ratio of non-performing loans to total loans of the group (%NPL) was 2.2%, divided into a portfolio of 2,637,183 credit card members, loans to card debtors. Credit and accrued interest total 74,441 million baht. Card spending volume in 2023 is 265,383 million baht, an increase of 11.4%. NPL for credit cards is 1.1%. KTC personal loan member portfolio 721,743 accounts, divided into loans to card debtors. Withdraw cash from "KTC Proud" and accrued interest is 30 ,597 million baht. Loans to debtors of "KTC P'Bem Car Exchange Money" are equal to 2,287 million baht. NPL for personal loans is at 3.0% for loans for debtors under hire-purchase contracts valued at 3,189 million baht. KTC has stopped granting this type of loan since August 2023 in order to manage the quality of the loan portfolio and debt collection. Because we saw signs of increased bad debt.' KTC's total income increased from the same period of 2022 by 9.4% from interest income and fee income. Total expenses increased 14.0% due to increases in core administrative expenses, fees paid from expanded transaction volumes. Expected credit losses (ECL) increased due to higher provisions. and financial costs that increase in line with the increase in interest rates in the financial market. As of December 31, 2023, the Group had total borrowings of 66,404 million baht, an increase of 7.7% compared to the same period of the previous year. Divide the funding source structure into short-term loans. (including loans and debentures due within one year) 32.9% and long-term loans 67.1%. Total short-term credit lines from financial institutions (Total Short-Term Credit Line) amount to 29,371 million baht (including credit lines from Krungthai Bank 19,061 million baht) used a short-term credit line of 4,981 million baht, with a total credit line remaining of 24,390 million baht. The ratio of debt to equity was 2.15 times, decreased compared to the end of the previous year at 2.22 times, lower than the burden. Debt Covenants at 10 times in 2023, KTC has financial costs equal to 2.7%, increasing from 2.4% in 2022 in line with market interest rate conditions increasing. At the same time, the return on loans is equal to 14.8%, increasing. from the previous year at 14.6% from the growth of the total portfolio As a result, the net interest margin in 2023 will remain at the same level as 13.2%. 'In 2024, many parties predict that The rate of economic expansion will improve. This follows the expansion of the export sector and the co ntinued recovery of the tourism sector. Therefore, it is likely to be a driving force for private consumption to move and increase spending. KTC aims to have continuously improved operating results. Along with taking care of the total debtor portfolio to expand more. Under the appropriate risk tolerance and aims to grow in 3 main businesses: credit card business Cash card loans 'KTC PROUD' and 'KTC Pee Bem Car Exchange' loans will also promote the business 'My by KTC' (MAAI by KTC), which provides security management systems. Relations with customers to expand more Together with the development of 3 main elements: people, processes and technology. to increase product and service efficiency' 'In addition, in response to the BoT's announcement at NBTC 7/2023 regarding the criteria for granting loans in a responsible and fair manner (Responsible Lending: RL), KTC also has measures to provide assistance to long-term debtors, such as in the case of fines. Increase the minimum installment payment rate for credit c ards from 5% to 8%, effective for the accounting period from 1 January 2024 - 31 December 2024. KTC believes that most debtors will be able to pay the higher minimum payment. But if there are some debtors who cannot pay The company has various approaches. in providing assistance to debtors It will also propose guidelines for providing assistance to non-NPL debtors, which is to restructure debt in a preventive manner (Pre-emptive DR) from the beginning when there are signs that debtors are about to encounter problems in repaying their debts. At least 1 time so that the debtor can pay the debt. Do not become non-performing debt (NPL) and the company will offer assistance guidelines to non-performing debtors (NPL) at least once, especially before taking legal action, transferring debt, terminating contracts or seizing assets. which provides assistance to such debtors The company will consider it in accordance with the debtor's ability to repay debt. and not cause the debtor to have an unreasonable increase in de bt burden from the original debt burden.' "however Providing assistance according to these criteria KTC has considered and believes that there will be no significant impact on the overall operations of the company. In addition, the BoT's assistance guidelines for debtors with chronic debt problems (Persistent Debt: PD) will have Effective from 1 April 2024 onwards. From the assessment of the impact if every eligible debtor joins the project It will have an impact on interest income decreasing by approximately 18 million baht per month. As for progress in the idea of having borrowers pay interest according to risk (Risk-based Pricing: RBP), there is still time to open for testing in mid-2024 and the case of determining the proportion of debt burden compared to income (Debt Service Ratio). : DSR) There has not yet been a specific hearing. According to the BoT's original plan, it is expected to come into effect in 2025. The BoT will reassess the economic situation.' 'In the past, KTC has also implemented vario us projects. To provide assistance to debtors in accordance with the BoT's guidelines for fair credit management. As of December 31, 2023, KTC has provided assistance to debtors in all statuses in the amount of 1,833 million baht, accounting for the proportion 1.7% of the total debtor portfolio' Source: Thai News Agency