KTC: Performance 2Q19 Total Membership 3,390,682 accounts (as of - - PowerPoint PPT Presentation

3,390,682 accounts

Total Membership

(as of June 30, 2019)

KTC: Performance 2Q19

2

KTC Story Consumer Finance Industry & KTC Portfolio Performances Credit Card Marketing Program Personal Loan Marketing Program

KTC Story

3

Total Portfolio

7.1%

Card Spending

10.5% NPL 1.1% COF 2.9%

Net Profit 15.8%

Personal loan

6.9%

Credit card

7.4% 0.8%

Credit card

1.0%

Personal loan

(YoY) (YoY)

(%YoY)

(YoY)

NIM 15.4%

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

5

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%

6 (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

Consumer Finance Industry & KTC Portfolio Performances

Credit Card

Personal Loan

Consumer Finance Industry & KTC Portfolio Performances

7

Pico

Finance

Nano Finance

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%

8

9

Source: BoT & NESDB

0.81 0.91 1.07 1.20 1.31 1.39 1.49 1.57 1.73 0.44

5.64 5.99 6.54 6.75 6.93 7.01 7.25 7.53 7.95 1.97

14.0% 14.5% 16.4% 17.7% 18.9% 19.9% 20.5% 20.9% 21.8% 22.2%

2010 2011 2012 2013 2014 2015 2016 2017 2018 1Q19

Total Credit Card Spending & Private Consumption Expenditure

Total Credit Card Spending of Industry Private Consumption Expenditure Total Credit Card Spending of Industry (%)

Baht Trillion

8.9% 3.8% CAGR (%) PCE Card Spending CAGR (%)

10

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)

11 11

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)

%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

12

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

13

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

%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)

14

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

15

Key B/S Figures Fund Usage Remaining Term (ST & LT)

Average Duration = 3.63 yrs.

≤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

16

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

17

* 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

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%

18

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%

OPPORTUNITY DAY

CREDIT CARD

August 19, 2019

บัตรเครดิต KTC UNIONPAY

ตอบไลฟ ์ สไตล์ที่ใช่ ทุกการใช้จ่ายในจีน

• รับคะแนน KTC FOREVER x2

เมื่อใช้จ่ายเป็นสกุลเงินท้องถิ่นที่ จีน ฮ่องกง มาเก๊า และไต้หวัน ครอบคลุมทุกการใช้จ่าย สะดวกสบายในจีน และทั่วโลก

• รับคะแนน KTC FOREVER x2

เมื่อใช้จ่ายเป็นสกุลเงินต่างประเทศ ทุกที่ ทั่วโลก ประสบการณ์เหนือระดับ กับบัตรเดียวที่ให้มากกว่า ทุกที่ ทั่วโลก

• รับคะแนน KTC FOREVER x2 เมื่อใช้จ่ายเป็นสกุลเงินต่างประเทศ ทุกที่ ทั่วโลก
• รับคะแนน KTC FOREVER x3 เมื่อใช้จ่ายผ่านบัตรฯ ที่ประเทศไทย ครบทุก 600,000 บาท

ในหมวดร้านอาหาร ช้อปป ิ้ง และ/หรือ ท่องเที่ยว

• ฟรี บริการห้องพักรับรองสนามบิน จาก DragonPass

KTC UNIONPAY PLATINUM KTC UNIONPAY DIAMOND KTC UNIONPAY ASIA PRESTIGE DIAMOND

(Invitation Only)

โปรโมชั่นบัตรเครดิต KTC UNIONPAY

โปรโมชั่นในประเทศ โปรโมชั่นในต่างประเทศ

UK : Bicester Village

• Up to 10% further reduction on

the Outlet price

Italy : The Mall Firenze

• Additional 10% saving on

purchases

France : La Vallée Village

• Additional 10% saving on

purchases

Switzerland : FoxTown Factory

• 5-30% discounts

คุ้มค่า หลากหลาย ตรงใจ

File:

ฃ

LIFE INSURANCE HEALTH INSURANCE MOTOR INSURANCE TRAVEL INSURANCE PA INSURANCE

CASH BACK POINTS REDEMPTION SPECIAL GIFT/ PACKAGE INSTALLMENT PAYMENT EXTRA POINTS

File:

File:

คะแนนน้อย อร่อยมาก

Mother’s Day

• Mom dines FREE
• Special Gift (Mooncake) when

dine 4 persons

• First Booking at participating

restaurant receive FREE Gift or Complimentary Voucher from CLARINS

• JW MARRIOTT BANGKOK
• SHANGRI-LA HOTEL BANGKOK
• ST. REGIS BANGKOK
• INTERCONTINENTAL BANGKOK
• BANYAN TREE BANGKOK
• THE ATHNEE A LUXURY COLLECTION HOTEL BANGKOK
• SUKOSOL BANGKOK
• SO SOFITEL BANGKOK
• RENAISSANCE BANGKOK RAJPRSONG HOTEL
• W BANGKOK
• SWISSOTEL BANGKOK RATCHADA
• OKURA PRESTIGE BANGKOK
• BANGKOK MARRIOTT MARQUIS QUEEN’S PARK
• EVERGREEN LAUREL BANGKOK
• BANGKOK MARRIOTT HOTEL THE SURAWONGSE
• THE BERKELEY HOTEL PRATUNAM
• CROWN PLAZA BANGKOK LUMPI NI PARK
• CONRAD BANGKOK

File:

• ใช้คะแนนแลกรับเครดิตเงินคืน 18%
• ผ่อนช ำระด้วยอัตรำดอกเบี้ยพิเศษ

0.69%/เดือน นำน 3 เดือน เพียง มียอดใช้จ่ำย 3,000 บำทขึ้นไป

• ผ่อนช ำระด้วยอัตรำดอกเบี้ย

ฯ พิเศษ 0.69% ต่อเดือน นำน 3 - 10 เดือน เพียงมียอด ใช้จ่ำย 3,000 บำทขึ้นไป

E-COUPON:

• Redeem 400 Baht E-Coupon with

1,999 KTC Forever Points

• On-top

discount when making table reservations via EATIGO

แลก e-coupon สุดคุ้ม สะดวก ง่าย ผ่าน KTC Mobile App

File:

แลก e-coupon สุดคุ้ม สะดวก ง่าย ผ่าน KTC Mobile app

• 1. เลือก e-Coupon ที่ต้องการใช้จากหน้า

My e-Coupon

ขั้นตอนการใช้ e-Coupon :

• 2. กดเพื่อใช้ e-Coupon
• 3. ยืนยันการใช้ e-Coupon
• 4. แสดง/ใช้ QR / Barcode / Code No. ที่

ร้านค้า

• 5. คูปองจะถูกย้ายไปที่ Used e-

Coupon เมื่อได้ท าการใช้แล้ว

แลก e-coupon สุดคุ้ม สะดวก ง่าย ผ่าน KTC Mobile app

KTC Line Official KTC World KTC Ushop

WEBSITES MOBILE APP

www.ktc.co.th www.ktcworld.co.th

รับทราบข่าวสารโปรโมชั่นผ่านช่องทางหลากหลาย……..

MONTHLY NEWSLETTER EMAIL

Marketing Program

Personal Loans Q3 2019

Personal Loans Marketing Program in Q3 2019

Acquisition Port management

Existing customers Port Activatio n Make Loyalty

Online Offline

Seek for new customer

Hot deal Interest only 199 baht

Pay a lump sum interest at only 199 baht/billing cycle

• For customers who apply for KTC PROUD and withdraw cash 1 time

per billing cycle (get the benefit for 2 consecutive billing cycles)

Campaign period: Sep 1 – Dec 31, 2019

Acquisition Campaign for new customer

Expand new target “Education Loan”

Special workshop Encourage customer to have good disciplinary Mass activation “Debt clearing campaign”

Get 1 chance for debt clearing season 10 1st Prize 100% debt clearing : 10 prizes /2nd Prize 10% debt clearing : 350 prizes

Builds loyalty of existing customers

Create customer satisfaction & builds long term loyalty

Cash withdrawals anywhere and anytime

▪ Cash via ATM ▪ Cash Online service 24 hours, real time money transfer to KTB

Payment options are available to choose

▪ Minimum 3% or at least 300 baht ▪ Monthly installment 6-36 months with special interest

Online Services Campaign

▪ Get chance to win cashback when use KTC Mobile & KTC Online services Registration online service Request E-Statement Doing Cash installment withdrawal ▪ Period Jun – Sep 2019

Enhance online service

Easy Installment Payment with 0% promotion longer than 10 months for your favorite items

Merchandize installment promotion

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

THANK YOU