Krungthai Card Public Co. Ltd. · SET:KTC
Krungthai Card Public — Investor Presentation (2017)
18 slides from Krungthai Card Public's investor presentation, 2017
Slide 1: KTC: Performance Y2017
KTC: Performance Y2017 Total Membership 3,022,411 accounts (as of December 31, 2017)
Slide 2: KTC Story; Consumer Finance Industry & KTC Portfolio Performances
KTC Story Consumer Finance Industry & KTC Portfolio Performances - Credit Card Business - Personal Loan Business 2
Slide 3: KTC Story
KTC Story 3
Slide 4: Incorporated in 1996 as a credit card subsidiary of Krungthai Bank
• Incorporated in 1996 as a credit card servicing subsidiary company of Krungthai Bank PLC • In July 2002, KTB sold the credit card portfolio to KTC which subsequently transformed KTC into a full consumer finance company and later listed on the SET in October 2002 % of Total Receivables % of Total R
Slide 5: Top Shareholders (as of Dec 31, 2017)
Top 10 Shareholders (as of Dec 31, 2017) 1 KRUNGTHAI BANK PUBLIC COMPANY LIMITED 49.45% 2 MR. MONGKOL PRAKITCHAIWATTANA 16.56% 49.45% 7.58% 3 MR. SATAPORN NGARMRUENGPONG 4.98% 4 MS. CHANTANA JIRATTITEPAT 4.32% Thai KTB Institutional 5 THAI NVDR 1.80% 6 EUROCLEAR NOMINEES LIMITED 1.65% 7 TISCO MASTER
Slide 6: Consumer Finance Industry & KTC Portfolio Performances
Credit Card Personal Loan Consumer Consumer Finance Finance Industry Industry & & KTC Portfolio Performances KTC Portfolio Performances 6
Slide 7: Total Credit Card Spending vs Private Consumption Expenditure
Total Credit Card Spending Private Consumption Expenditure Baht Trillion 7.26 7.54 6.94 7.01 6.54 6.75 5.64 5.99 5.21 5.13 18.8% 19.9% 20.5% 20.8% 15.1% 16.4% 17.7% 13.2% 14.0% 14.5% 1.20 1.31 1.39 1.49 1.57 0.81 0.91 1.07 0.69 0.72 Card Spending CAGR (%) 9.5% PCE CAGR (%) 4.2% Total Credit Card Spe
Slide 8: Credit Card: Acquisition Channels - New Application
Million Cards Market Share Market Share 52.0% 53.3% 51.2% 52.5% 2.17 2.10 48.8% 48.0% 46.7% 47.5% 1.89 1.81 8.9% 9.9% 10.4% 10.7% Y2014 Y2015 Y2016 Y2017 Commercial Banks Non-Banks KTC Y2014 Y2015 Y2016 Y2017 Acquisition Channels - New Application %Growth (YoY) 15.3% 16% 14% 16% 18% 11.1% 38% 34% 34
Slide 9: Credit Card Market Share
Market Share Baht Million 66.9% 66.3% 66.1% 65.6% 33.1% 33.7% 33.9% 34.4% 9.9% 10.5% 11.1% 11.3% Y2014 Y2015 Y2016 Y2017 Commercial Banks Non-Banks KTC %Growth (YoY) 13.4% 12.3% 9.4% 6.9% 7.4% 6.9% 6.5% 5.2% Y Y Y Y Y2014 Y2015 Y2016 Y2017 Industry KTC Source: BoT & KTC 9
Slide 10: Credit Card Portfolio Quality
Baht Million Market Share % Growth (YoY) %Growth (YoY) 48,338 1.1% 46,195 98.9% 60.8% 61.5% 60.6% 59.9% 11.5% 1.2% 10.1% 9.5% 9.4% 98.8% 40.1% 39.2% 38.5% 39.4% 8.0% 41,412 6.6% 1.3% 11.8% 12.4% 12.8% 12.3% 4.8% 4.6% 98.7% 37,621 1.7% Y2014 Y2015 Y2016 Y2017 Y2014 Y2015 Y2016 Y2017 98.3% Commercial
Slide 11: Personal Loan: Acquisition Channels - New Application
Number of Accounts Market Share 852,915 818,068 77.3% 79.5% 81.1% 75.8% 747,343 693,273 24.2% 22.7% 20.5% 18.9% 5.9% 6.3% 6.7% 6.7% Y2014 Y2015 Y2016 Y2017 Commercial Banks Non-Banks KTC Y2014 Y2015 Y2016 Y2017 Acquisition Channels - New Application %Growth (YoY) 4% 3% 3% 4% 9.5% 8.5% 7.8% 64% 57% 5
Slide 12: Personal Loan Portfolio Quality
Baht Million %Growth (YoY) Market Share % Growth (YoY) 0.8% 56.1% 18.2% 51.3% 53.0% 50.4% 48.7% 49.6% 12.7% 0.9% 47.0% 11.6% 43.9% 10.1% 6.4% 4.6% 4.6% 1.0% 5.3% 5.8% 6.6% 7.0% 1.8% 1.2% Y Y Y M M Y2014 Y2015 Y2016 Y2017 Y2014 Y2015 Y2016 Y2017 Industry KTC Commercial Banks Non-Banks KTC Industry KT
Slide 13: Key B/S Figures and Fund Usage
Key B/S Figures Fund Usage Baht billion Baht billion 73.6 53.4 51.1 68.3 81% 45.1 81% 61.1 41.6 60.2 65% 58.0 57% 54.5 53.4 51.4 51.1 47.1 45.1 4.4% 41.6 3.7% 3.1% 3.1% 13% 4% 6.40 31% 5.89 30% 19% 19% 5.62 4.85 Y2014 Y2015 Y2016 Y2017 12.6 Short-term loans Long-Term Loans Debenture Cost of fund 8.7
Slide 14: Operating Results
Y2015 Y2016 Y2017 Operating Results Million Baht (%YoY) Million Baht (%YoY) Million Baht (%YoY) Total Revenue 15,559 8.5% 17,580 13.0% 19,525 11.1% Bad Debt Recovery 2,037 15.3% 2,398 17.7% 2,855 19.0% Administrative Expenses 6,139 14.2% 6,902 12.4% 7,143 3.5% Marketing Expenses 956 1.2% 1,122 17.4%
Slide 15: Key Financial Ratios
Y2014 Y2015 Y2016 Y2017 Net Profit Margin 12.2% 13.3% 14.2% 16.9% Cost to Income Ratio 37.5% 39.5% 39.3% 36.6% Operating Cost to Income Ratio(1) 27.3% 29.4% 28.5% 27.6% Average Interest Received (including credit usage) 18.7% 18.2% 18.2% 18.2% Average Cost of Fund 4.4% 3.7% 3.1% 3.1% Net Interest Ma
Slide 16: Current vs Previous Regulation
Previous Regulation Current Regulation (Effective 1st September 2017) Credit Card Minimum income THB 15,000 THB 15,000 Interest rates and fees 20% 18% Income THB 15,000 - 29,999 1.5x New Maximum Credit Line 5x customers THB 30,000 - 49,999 3.0x only ≥ THB 50,000 5.0x Personal Loans Interest r
Slide 17: Key Performance Indicators
Key Performance Indicators NET PROFIT (MB) Total Port Growth (YOY) 2,073 10.3% 2,495 13.2% target = 10% 3,304 32% target = 10% 7% (yoy) Target 10% More than 2017 Total Card Spending Growth (YOY) % NPL – Total Port 12.3% 2.1% 13.4% 1.7% 6.9% Target ≤ 1.7% 1.3% Target = 15% Maintain 2017 level 1.3% 17
Slide 18: Thank You
THANK YOU Disclaimer: This presentation is intended only for use by Krungthai Card Public Company Limited (KTC). No copy or use of this presentation should occur without the permission of KTC. KTC retains all intellectual property interests associated with the presentation. KTC makes no claim, promi
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