KTC Reports Slight Decline in 2Q23 Earnings, Expecting Acceleration in Second Half

Krungthai Card Public Company Limited (SET: KTC) announced its 2Q23 consolidated financial statement through the Stock Exchange of Thailand as follows;

Quarter 2Q23 2Q22
Net Profit (Loss)
Million Baht
1,805.83 1,893.76
Earning Per Share
0.7000 0.7300
% Change -4.64
6 Months 2023 2022
Net Profit (Loss)
Million Baht
3,677.54 3,641.03
Earning Per Share (Baht) 1.43 1.41
% Change 1.00

The net profit of KTC for the second quarter 2023 amounted to Baht 1,806 million, representing a decrease of 4.6% from the same period of the previous year, which was Baht 1,894 million.

In 2Q23, the total portfolio of KTC was equivalent to Baht 105,589 million, growing at a rate of 11.1% (YoY). Total Non-Performing Loans (NPL) were recorded at 2.0%, a figure closely resembling the previous quarter which was at 1.9%. This follows the expansion trend of the total portfolio, which has seen continuous growth over the last five consecutive quarters on a year-on-year basis. However, NPL level remains lower than the industry average, while NPL coverage ratio stands at 433.2%. 

The credit card portfolio continues to expand due to domestic demand. The volume of card spending has increased significantly, while the personal loan portfolio continues to grow. Nevertheless, the company maintains an emphasis on careful screening for quality personal loans through a rigorous approval process. This involves selecting customers whose risk profiles align well with the established interest rate levels for personal loans. 

The Group’s performance for 2Q23 demonstrated a growth in total revenue by 8.8% (YoY), owing to an increase in interest income. Total expenses rose by 18.7% (YoY), part of the increase is due to the portfolio expansion, which led to an increase in non-performing loans (NPL). This results in an increase in expected credit loss (ECL), as well as an increase in write-offs. Additionally, financial costs increased slightly, following the rise in market interest rates.

In the second half of 2023, given the current acceleration rate, KTC P BERM Car for Cash is planning to multiply the volume of new bookings. The growth of the credit card and personal loan portfolios is progressing as targeted. The Non-Performing Loans (NPL) are at manageable levels and are not a cause for concern. Thus, the company remains confident in its ability to achieve its profit goals.