Krungthai Card Public Co. Ltd. · SET:KTC
Krungthai Card Public — H1 2023 Earnings Presentation
20 slides from Krungthai Card Public's earnings presentation, Aug 22, 2023
Slide 1: KTC Performance 1H23
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Slide 2: Agenda
AGENDA 1 KTC Overview & Key Highlights 2 Financial Results Consumer Finance Industry & 3 KTC Portfolio Performances 4 Target vs Actual 5 KTC Sustainability KRUNGTHAI CARD PUBLIC COMPANY LIMITED 2
Slide 3: KTC Overview
KTC Overview • Incorporated in 1996 as a credit card servicing subsidiary company of Krung Thai 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 Shareholder Structure
Slide 4: Rules and Regulations
Rules and Regulations Personal Auto Title Loan Hire Credit Card Purchase Loan Multipurpose Multipurpose Multipurpose Multipurpose Type of Loan Unsecure Unsecure Secured or Unsecure Secured Nationwide Nationwide Nationwide Nationwide Minimum Income 15,000 - - - (THB) Maximum 1.5x (income < 30K) 1.5x
Slide 5: Sustainable Household Debt Solution Framework
Sustainable Household Debt Solution Framework BOT’s Briefing on 21 Jul 2023 Responsible Lending (RL) Risk-Based Debt Service Persistent Debt Pricing (RBP) Ratio (DSR) (PD) Target Group Retail Borrowers Revolving Personal Loans NPLs Performing Loans Loan Type Persistent Debt (PD) (Interest payment hi
Slide 6: Key Highlights 1H23
Key Highlights 1H23 Total Revenue Net Profit 12,295 MB 3,678 MB 10.8% (YoY) 1.0% (YoY) Strong growth in Revenue Total Portfolio 105,589 MB 11.1% (YoY) Robust portfolio expansion from all businesses Credit Card Personal Loans Leasing 68,664 MB 33,385 MB 3,540 MB 11.8% (YoY) 9.6% (YoY) 11.2% (YoY) Cre
Slide 7: Agenda
AGENDA 1 KTC Overview & Key Highlights 2 Financial Results Consumer Finance Industry & 3 KTC Portfolio Performances 4 Target vs Actual 5 KTC Sustainability KRUNGTHAI CARD PUBLIC COMPANY LIMITED 7
Slide 8: Financial Result 1H23
Financial Result 1H23 Total Revenue 12,295 10.8% Total Expense 7,730 18.2% Million Baht (YoY) Million Baht (YoY) Total Revenue Total Operating Expense 4,120 8.9% Unit: MB Million Baht (YoY) 22,055 21,442 23,231 Cost to Income Ratio 11,091 12,295 32.9% 34.2% 34.9% 34.1% 33.5% 8,117 7,260 7,326 14,382
Slide 9: Expected Credit Loss
Expected Credit Loss Expected Credit Loss Allowance for Expected Credit Loss Credit Cost (Total ECL to Total Loan) NPL Coverage ratio (Total Allowance to NPLs) Separate Consolidated Separate Consolidated 7.3% 460% 465% 502% 5.4% 5.3% 487% 472% 4.7% 4.4% 7.3% 460% 476% 5.9% 5.1% 292% 433% 4.7% 4.4% 3
Slide 10: Balance Sheet and Source of Fund
Balance Sheet and Source of Fund Balance Sheet Highlight Interest Bearing Debt (Original Term) THB Billion THB Billion 70.00 10.0% 102.5 61.6 62.8 101.8 89.5 57.4 9.0% 88.4 60.00 54.4 70.2 70.3 8.0% 65.6 62.4 50.00 7.0% 27.1 31.6 32.3 6.0% 22.9 74% 75% 40.00 76% 5.0% 2.87 80% 2.30 2.22 2.18 30.00 4.
Slide 11: Profitability Ratio
Profitability Ratio Yield & NIM & COF Net Profit Margin 16.0% 14.9% 14.6% 14.6% 14.8% 33.0% 31.1% 30.1% 29.5% 13.4% 24.2% 32.8% 12.4% 12.2% 12.2% 12.2% 30.5% 29.9% 27.4% 2.7% 2.5% 24.2% 2.4% 2.4% 2.6% 2020 2021 2022 1H22 1H23 2020 2021 2022 1H22 1H23 Yield Net Interest Margin (NIM) Cost of Fund (COF
Slide 12: Agenda
AGENDA 1 KTC Overview & Key Highlights 2 Financial Results Consumer Finance Industry & 3 KTC Portfolio Performances 4 Target vs Actual 5 KTC Sustainability KRUNGTHAI CARD PUBLIC COMPANY LIMITED 12
Slide 13: Credit Card Industry & Market Share
Credit Card Industry & Market Share Credit Card Penetration 3.1% 3.4% 4.2% 4.2% 2.2% 1.6% 2.6% 2.7% 1.0% -6.2% 12.00 Unit: Baht Trillion 9.47 50.0% 8.30 8.42 10.00 7.58 8.00 8.00 6.79 6.96 7.06 7.30 21.1% 21.6% 22.8% 23.6% 21.2% 21.6% 19.3% 20.0% 19.8% 19.6% 30.0% 6.00 2.43 4.00 10.0% 2.00 1.31 1.39
Slide 14: Credit Card Performance
Credit Card Performance Portfolio Growth Portfolio Quality 15.4% 11.8% KTC 2.2% (%Y/Y) 6.3% 1.9% 1.8% 1.9% 1.9% Industry Industry 5.4% 2.4% KTC (%Y/Y) -0.1% -1.6% 1.3% 1.2% 1.1% 1.2% 69,462 68,664 60,235 60,201 791 833 738 730 2020 2021 2022 1H23 2020 2021 2022 1H23 Total Credit Card Receivables (Mi
Slide 15: Personal Loan Performance
Personal Loan Performance Portfolio Growth Portfolio Quality 3.0% 2.9% 3.5% 20.5% 17.2% 2.9% Industry (%Y/Y) 9.1% 0.1% Industry KTC (%Y/Y) 2.7% 2.5% 2.8% 3.0% 3.4% 10.4% 9.6% KTC -2.3% 975 807 843 896 32,283 33,385 29,915 29,235 2020 2021 2022 1H23 2020 2021 2022 1H23 Total Personal Loan Receivables
Slide 16: 4 Target vs Actual
AGENDA 1 KTC Overview & Key Highlights 2 Financial Results Consumer Finance Industry & 3 KTC Portfolio Performances 4 Target vs Actual 5 KTC Sustainability KRUNGTHAI CARD PUBLIC COMPANY LIMITED 16
Slide 17: Target vs Actual
Target vs Actual Financial Target 2023 Actual 1H23 Net Profit > 7,079 MB 3,678 MB Total Portfolio Growth 15% 11.1% Credit Card Spending Growth 10% 16.3% Personal Loan Receivables Growth 7% 6.8% New Booking of P BERM Car for Cash 9,000 MB 1,132 MB New Booking of KTBL Commercial Loan 3,000 MB 1,402 MB
Slide 18: 5 KTC Sustainability
AGENDA 1 KTC Overview & Key Highlights 2 Financial Results Consumer Finance Industry & 3 KTC Portfolio Performances 4 2022 Achievement & 2023 Targets 5 KTC Sustainability KRUNGTHAI CARD PUBLIC COMPANY LIMITED 18
Slide 19: Sustainability Overview
Sustainability Overview KTC is a membership company in payment and retail lending business Vision with emphasis on being a trusted organization with sustainable growth To provide better financial products and services to enhance Purpose quality of life for all Thais Strategies Economic Social Enviro
Slide 20: 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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