SLIDE 1
3,390,682 accounts
Total Membership
(as of June 30, 2019)
KTC Story Consumer Finance Industry & KTC Portfolio Performances
- Credit Card Business
- Personal Loan Business
2
KTC: Performance 2Q19 Total Membership 3,390,682 accounts (as of - - PowerPoint PPT Presentation
KTC: Performance 2Q19 Total Membership 3,390,682 accounts (as of - - PowerPoint PPT Presentation
KTC: Performance 2Q19 Total Membership 3,390,682 accounts (as of June 30, 2019) KTC Story Consumer Finance Industry & KTC Portfolio Performances - Credit Card Business - Personal Loan Business 2 KTC Story 3 Incorporated in 1996 as
SLIDE 2
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KTC Story
3
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2014 2015 2016 2017 2018 1H19 Thai Institutional Holding 62.87% 72.01% 67.23% 57.03% 58.10% 58.82% Thai Individual Holding 29.32% 21.87% 22.45% 35.47% 38.20% 36.99% Foreign Holding 7.81% 6.12% 10.33% 7.51% 3.71% 4.20% Total Number of Shareholders 3,125 3,426 3,815 4,376 12,344 10,626
4
Source: TSD
Top 10 Shareholders (as of Jun 30, 2019)
KTB
Foreign
49.27% 4.20%
Thai Institutional
Thai Individual
9.54% 36.99%
- 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
1 KRUNG THAI BANK PUBLIC COMPANY LIMITED 49.27% 2
- MR. MONGKOL PRAKITCHAIWATTANA
17.14% 3 THAI NVDR 5.42% 4
- MR. SATAPORN NGARMRUENGPONG
4.98% 5
- MS. CHANTANA JIRATTITEPAT
4.98% 6 SOUTH EAST ASIA UK (TYPE C) NOMINEES LIMITED 1.61% 7
- MRS. MANEERAT NGARMRUENGPONG
0.88% 8
- MR. KIATINUN DENPAISAN
0.82% 9
- MS. RAWISARA NGARMRUNGSIRI
0.63% 10
- MRS. LAWAN WANGLEE
0.52%
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5 (As of June 30, 2019)
Credit Card Personal loan Others (Circle Loan and miscellaneous) % of Total Revenue Credit Card Personal loan Others (Circle Loan and miscellaneous) % of Total Receivables
SLIDE 6
Consumer Finance Industry & KTC Portfolio Performances
Credit Card
Personal Loan
Consumer Finance Industry & KTC Portfolio Performances
6
Pico
Finance
Nano Finance
SLIDE 7
Credit card Personal loans Nano Finance Pico Finance
Minimum income THB
15,000
- Interest rate
and fees
18% 28% 36%
Maximum credit line
100,000 100,000
Type of loan Multipurpose Unsecure Multipurpose Unsecure Business Related Unsecure Multipurpose Secure or Unsecure Service area Nationwide Nationwide Nationwide Provincial Regulator Bank of Thailand Bank of Thailand Bank of Thailand Ministry of Finance
5x
(income ≥ 30K)
1.5x
Income < 30K limited to 3 lenders (income 15 – 30K)
1.5x 3x
(income 30 – 50K)
5x
(income ≥ 50K)
amount up to 50,000 amount over 50,000
36% 28%
7
SLIDE 8
8
Source: BoT & NESDB
0.81 0.91 1.07 1.20 1.31 1.39 1.49 1.57 1.73 0.89
5.64 5.99 6.54 6.75 6.93 7.01 7.25 7.53 7.95 4.11
14.0% 14.5% 16.4% 17.7% 18.9% 19.9% 20.5% 20.9% 21.8% 21.6%
2010 2011 2012 2013 2014 2015 2016 2017 2018 1H19
Total Credit Card Spending & Private Consumption Expenditure
Total Credit Card Spending of Industry Private Consumption Expenditure Total Credit Card Spending of Industry (%)
Baht Trillion
9.1% 4.3% CAGR (%) PCE Card Spending CAGR (%)
SLIDE 9
9
Source: BoT & KTC
2.10 2.17 2.39 2.25 2.41
2016 2017 2018 1H18 1H19
Million Cards
2016 2017 2018 1H19
49% 40% 37% 39% 2% 4% 5% 5% 34% 38% 34% 41% 16% 17% 24% 15% Others Direct Sale & Telesale KTC Branch KTB
Acquisition Channels - New Application
Others: Printing Media Insertion, Marketing Events, Online, Corporate Alliance, Take One Partner, Network Management, and others
51.2% 47.5% 47.9% 48.3% 48.8% 52.5% 52.1% 51.7% 10.4% 10.7% 10.8% 10.4% 2016 2017 2018 1H19
Commercial Banks Non-Banks KTC Market Share
Market Share 6.1% 1.0% 8.7% 9.8% 11.1% 3.5% 10.1% 6.9% 2016 2017 2018 1H19
Industry KTC
%Growth (YoY)
SLIDE 10
10 10
Source: BoT & KTC
165,404 176,777 193,101 90,785 100,282
2016 2017 2018 1H18 1H19
Baht Million
66.1% 65.3% 65.2% 65.5% 33.9% 34.7% 34.8% 34.5% 11.1% 11.2% 11.2% 11.3% 2016 2017 2018 1H19
Commercial Banks Non-Banks KTC
Market Share 6.9% 5.7% 10.0% 8.2% 13.4% 6.9% 9.2% 10.5% 2016 2017 2018 1H19
Industry KTC
%Growth (YoY)
SLIDE 11
%NPL (90dpd) 2015 2016 2017 2018 1H19 Industry 3.09% 2.84% 1.92% 1.81% 1.85% Commercial Bank 3.95% 3.69% 2.39% 2.17% 2.21% Non-Bank 1.72% 1.54% 1.21% 1.26% 1.31% KTC 1.35% 1.22% 1.12% 0.99% 1.01%
Portfolio Quality
11
Source: BoT & KTC 98.8% 98.9% 99.0% 98.9% 99.0% 1.22% 1.12% 0.99% 1.08% 1.01%
46,195 48,338 51,062 46,251 49,658
1.9% 1.6% 1.5% 1.5% 1.6%
2016 2017 2018 1H18 1H19
<= 90 Days > 90 Days Delinquency
Baht Million 8.0% 9.4% 6.2% 8.1% 11.5% 4.6% 5.6% 7.4% 2016 2017 2018 1H19
Industry KTC
%Growth (YoY) %Growth (YoY) 60.6% 59.9% 60.5% 60.2% 39.4% 40.1% 39.5% 39.8% 12.8% 12.3% 12.2% 12.5% 2016 2017 2018 1H19
Commercial Banks Non-Banks KTC
Market Share
SLIDE 12
12
Source: BoT & KTC
818,068 852,915 951,882 867,236 985,037
2016 2017 2018 1H18 1H19 Number of Accounts
2016 2017 2018 1H19
38% 32% 37% 36% 1% 3% 4% 4% 58% 61% 58% 58% 3% 4% 2% 2%
Others Direct Sale & Telesale KTC Branch KTB
Acquisition Channels - New Application
Others: Online, Marketing Events, and Others
2.6% 4.6% 5.3% 16.5% 9.5% 4.3% 11.6% 13.6% 2016 2017 2018 1H19
Industry KTC
%Growth (YoY) 20.4% 18.9% 18.7% 18.9% 79.6% 81.1% 81.3% 81.1% 6.7% 6.7% 7.1% 6.5% 2016 2017 2018 1H19
Commercial Banks Non-Banks KTC
Market Share
SLIDE 13
%NPL (90dpd) 2015 2016 2017 2018 1H19 Industry 5.17% 3.16% 2.50% 2.54% 3.49% Commercial Bank 5.01% 4.08% 3.02% 2.97% 5.19% Non-Bank 5.33% 2.35% 2.10% 2.22% 2.03% KTC 1.04% 0.94% 0.76% 0.76% 0.81%
4.6% 6.4% 8.2% 48.9% 18.2% 12.7% 8.3% 6.9% 2016 2017 2018 1H19
Industry KTC
%Growth (YoY)
13
Source: BoT & KTC
Portfolio Quality
*
* Starting in February 2019 BOT includes Car Title Loan into the Personal loan amount. Retroactive data was not provided. 99.1% 99.2% 99.2% 99.2% 99.2% 0.94% 0.76% 0.76% 0.77% 0.81%
21,959 24,757 26,821 25,423 27,177
2.5% 2.3% 2.2% 2.1% 2.1%
2016 2017 2018 1H18 1H19
<= 90 Days > 90 Days Delinquency
Baht Million
47.0% 43.9% 43.5% 46.2% 53.0% 56.1% 56.5% 53.8% 6.6% 7.0% 7.0% 5.1% 2016 2017 2018 1H19
Commercial Banks Non-Banks KTC
Market Share
SLIDE 14
14
Key B/S Figures Fund Usage Remaining Term (ST & LT)
Average Duration = 3.63 yrs.
19% 19% 16% 16% 81% 81% 84% 84% 51.1 53.4 54.1 53.5 3.1% 3.1% 2.9% 2.9% 2016 2017 2018 1H19 Short-term loans Long-Term Loans Debenture Cost of fund Baht billion Total Credit Line = 29,540 MB → KTB = 18,030 MB Others = 11,510 MB KTC rating : A+ by TRIS KTC rating : A+ by TRIS KTC rating : A+ by TRIS KTC rating : A+ by TRIS KTC rating : A+ by TRIS KTC rating : A+ by TRIS KTC rating : A+ by TRIS KTC rating : A+ by TRIS≤1Y 20% >1Y - 4Y 48% 5Y - 10Y 32%
10,929 25,505 17,045
68.3 73.6 79.6 78.4
58.0 61.1 63.3 61.2 51.1 53.4 54.1 53.5 10.3 12.6 16.4 17.2
5.62 4.85 3.87 3.56
2016 2017 2018 1H19
Assets Liabilities Interest Bearing Debt Equity D/E
Baht billion
19% 19% 16% 16% 81% 81% 84% 84%
51.1 53.4 54.1 53.5
3.1% 3.1% 2.9% 2.9%
2016 2017 2018 1H19
Short-term loans Debenture (Fixed Rate Bonds) Cost of fund
Baht billion
Total Credit Line = 29,540 MB → KTB = 18,030 MB Others = 11,510 MB
KTC rating : A+ by TRIS KTC rating : A+ by TRIS KTC rating : A+ by TRIS KTC rating : A+ by TRIS KTC rating : A+ by TRIS KTC rating : A+ by TRIS KTC rating : A+ by TRIS KTC rating : A+ by TRIS
SLIDE 15
15
Million Baht (%YoY) Million Baht (%YoY) Million Baht (%YoY)
Total Revenue 19,525 11.1% 21,198 8.6% 11,102 7.1% Bad Debt Recovery 2,855 19.0% 3,342 17.1% 1,766 3.3% Administrative Expenses 7,143 3.5% 7,524 5.3% 3,753 2.9% Marketing Expenses 866 (22.8%) 909 5.0% 432 9.0% Fee Paid Expenses 2,258 9.5% 2,366 4.7% 1,172 (1.1%) Interest Expense 1,629 9.9% 1,555 (4.5%) 771 (1.2%) Pre-Provisioning Profit 10,754 16.9% 12,119 12.7% 6,578 10.7% Bad Debt and Doubtful Account 6,627 9.2% 5,703 (13.9%) 2,937 4.9% Profit before Tax 4,127 32.0% 6,416 55.5% 3,640 16.0% Income Tax Expense (822) 30.3% (1,277) 55.2% (728) 16.6%
Net Profit 3,304 32.5% 5,140 55.5% 2,913 15.8%
Consolidated Operating Results
Y2018 Y2017 1H19
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16
* Excluding Net Interchange & Marketing Expenses
Y2016 Y2017 Y2018 1H18 1H19
Net Profit Margin
14.2% 16.9% 24.2% 24.3% 26.2%
Cost to Income Ratio
39.3% 36.6% 35.5% 35.2% 33.8%
Operating Cost to Income Ratio*
28.5% 27.6% 26.6% 26.8% 25.5%
Average Interest Received (including credit usage)
18.2% 18.2% 18.0% 18.2% 18.3%
Average Cost of Fund
3.1% 3.1% 2.9% 3.0% 2.9%
Net Interest Margin (including credit usage)
15.1% 15.1% 15.1% 15.3% 15.4%
D/E Ratio (times)
5.62 4.85 3.87 4.24 3.56
ROE
26.2% 28.9% 35.5% 38.2% 34.8%
ROA
3.9% 4.7% 6.7% 6.9% 7.4%
Allowance/Total Receivables
7.9% 7.8% 7.0% 7.7% 7.1%
Allowance/NPL
473% 589% 616% 605% 622%
Charge-off Rate
9.4% 9.3% 7.5% 7.7% 7.6%
Earning per share
0.97 1.28 1.99 0.98 1.13
Book Value per Share (Baht)
4.00 4.88 6.34 5.32 6.66
Dividend Payout Ratio
0.41 0.41 0.41 NA NA
SLIDE 17
2019 1H19 2018 2017
10% 2,913 5,140 3,304
2019 1H19 2018 2017
15.0% 10.5% 9.2% 6.9%
2019 1H19 2018 2017
10.0% 7.1% 6.4% 7.0%
2019 1H19 2018 2017
1.1% 1.1% 1.1% 1.3%
17
2019 Outlook
Total Card Spending Growth % NPL – Total Portfolio NET PROFIT (MB) Total Port Growth (YOY)
Target Target Target Growth
Maintain 2018
Growth 32% Growth 56% Growth 16%
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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, promise, or guarantee
- f any kind about the accuracy, completeness, or satisfactoriness of the content of the presentation and expressly disclaims liability for errors and
- missions in such content