KTC Posts 6.5 Billion Baht Profit in Nine Months

KTC demonstrates resilience with a nine-month profit exceeding 6.5 billion baht despite weak consumer purchasing power. Amid pressure from an uneven economic recovery and fragile household purchasing power affecting economic activity across many regions, the KTC group maintained continuous operational growth in Q3 2024, posting a net profit of 2.125 billion baht, up 8.9% from the same period last year. Credit card spending volume over nine months grew 4.7%, reflecting the strength of its business model, portfolio quality, and sustained risk management efficiency.

Ms. Pitiya Varapanyasakul, CEO of KTC (Krungthai Card PCL), stated that overall industry growth at the end of Q3 2024 remains pressured by Thailand's low and uneven economic expansion, particularly in the household sector, which still faces purchasing power constraints from high debt levels and living costs. This has made consumers more cautious about spending and taking on new debt, while some borrowers' repayment capacity remains fragile, prompting many lenders to maintain cautious lending policies prioritizing credit quality and risk management.

Despite the industry's gradual expansion, KTC has maintained strong market share across all core products. In the first eight months of 2024, KTC held its personal loan market share near the previous level at 4.2%, while expanding its credit card receivables market share from 14.5% to 14.6% and its credit card spending volume share from 13.1% to 13.3% year-on-year.

"In Q3 2024, the KTC group posted a net profit of 2.125 billion baht, and for the nine-month period, a net profit of 6.521 billion baht, maintaining the strength of a business model focused on quality growth, balancing business expansion with risk management, while preserving asset quality at appropriate levels. Economic challenges are not obstacles to growth if an organization has risk management discipline and deep understanding of consumer behavior. Sustained operational growth reflects the strength of our member base, portfolio quality, and ability to adapt to constantly changing market conditions," she said.

Regarding expanding insurance product distribution capabilities through diverse online and offline channels to meet target needs with competitive offerings, KTC is preparing documentation to register electronic operations for insurance brokerage, enabling electronic policy sales, with regulatory approval expected in Q4 2024.

Additionally, on August 25, 2024, KTC acquired ordinary shares of Win Performance Co., Ltd., a debt collection partner, making it a KTC subsidiary and part of the Krungthai Bank financial business group, to support strategic plans for operating cost management and revenue generation through collaboration between KTC and the bank's financial group companies.

Data as of September 30, 2024 compared to the same period in 2023.