KTC revamps organizational processes and implements customer loan assistance measures to cope with the economic crisis and the COVID-19 virus, showcasing a first-quarter profit of 1.641 billion baht.

Mr. Ratthaphiang Srimongkol, Chief Executive Officer of KTC or Krungthai Card Public Company Limited (KTC), revealed that the outbreak of the new COVID-19 virus has spread globally, leading to a severe crisis impacting nearly all types of businesses, affecting people's livelihoods and spending habits. Consequently, the growth of the customer portfolio and spending through KTC cards has begun to be impacted.

“KTC's mission during this time is to carefully analyze and strategize how to navigate this crisis with minimal impact and prepare for the post-COVID-19 world, which will not be the same as before. We will accelerate the analysis and improvement of our processes, reduce redundancy and complexity, and enhance operational efficiency while maintaining the quality of our credit portfolio for both credit cards and personal loans,” Mr. Ratthaphiang stated.

However, the company has fully supported the government in implementing measures to alleviate the burden on customers affected by COVID-19, in line with the policies of the Ministry of Finance and the Bank of Thailand. This includes reducing the credit card repayment rate from 10% to 5% starting in April 2020. For personal loan customers under “KTC Prow,” the minimum repayment rate is currently set at 3%, which aligns with the assistance measures. Additionally, the company plans to introduce further assistance measures for customers on April 20.

Regarding the company's performance in the first quarter, it reported a net profit of 1.641 billion baht, interest income of 3.615 billion baht, and a non-performing loan (NPL) ratio of 4.01%. The total loans and accrued interest amounted to 82.102 billion baht, with a total membership base of 3.5 million accounts, reflecting a 5.6% increase. This includes a credit card member portfolio of 2,593,947 cards, up by 10.4%. The total loans and accrued interest for credit card customers reached 52.137 billion baht, while spending through credit cards in the first two months showed a growth rate of 10%, compared to the industry's growth of 6.2%.

Meanwhile, the spending volume through cards was 50.167 billion baht, growing by 2.2%. The NPL ratio for credit cards under the new standards was 3.44%. The personal loan member portfolio of KTC stood at 926,729 accounts, down by 6.0%, with total loans and accrued interest for personal loans at 29.965 billion baht. The NPL ratio for personal loans under the new TFRS 9 standards was 4.99%. Additionally, under the new TFRS 9 standards, the company generated total revenue of 5.669 billion baht and fee income of 1.183 billion baht, with total expenses amounting to 3.631 billion baht.