As of September 30, 2023, KTC’s total loans amounted to 62,730 million baht, an increase of 9.8%, and the proportion of financing structure was short-term loans. (Including loans and debt securities maturing within one year) 23% and long-term loans 77%, with a total short-term credit line from financial institutions (total short-term credit line) of 29,371 million baht (including credit lines from Krungthai Banks) 19,061 1 million baht) has used a short-term credit line of 5,221 million baht and has an available credit limit of 24,150 million baht. Financing costs were 2.7% and debt-to-equity ratio was 2.07 times, down from the same period. For 2022 at 2.14 times and 10 times less than the commitment.
“Over the past 8 months consumer spending demand and consumer confidence remain good. This has led to the consumer finance industry expanding further. This is also a positive factor for the continued growth of KTC’s operating results. The ratio of credit card debtors compared to the industry was 14.9%, and The market share of card spending volume was 12.1%, expanding from the same period in 2022, while the proportion of personal loan receivables (excluding loans with vehicle registration as collateral) was 6.2% compared to the industry, Mr. Rathian said.
In addition, KTC is also implementing various projects. To assist debtors in accordance with the Fair Credit Management Guidelines of the Bank of Thailand (BoT). As of September 30, 2023, KTC has provided assistance to debtors in all cases in the amount of 1,802 million baht, equivalent to 1.8% of the total debtor’s portfolio.
As for the progress of the Bank of England’s sustainable household debt settlement measures, it was open to hearing opinions. (Consultation Paper) on the draft “Criteria for Granting Responsible and Fair Lending” (Responsible Lending: RL) and the recent draft “Mechanism for Setting Risk-Based Interest Rates for Retail Loans” (Risk-Based Pricing: RBP) as guidelines. Modifying the behavior of creditors and debtors by raising the level of responsible lending operations throughout the debt cycle. KTC’s guidelines are clear. We have always provided credit services in a responsible manner. There are rules for advertising and sales that are mostly the same as the BoT, so we are confident that the rules that apply will be enforced. There won’t be any significant impact. For KTC operations
Regarding the provision of assistance to debtors with chronic debt problems (persistent debts: PD), which will come into effect from April 2024 onwards, KTC will provide options to interested debtors. For debtors who are considered to have chronic debt (severe persistent debt), they can switch to a revolving loan with a term loan and charge an interest rate of no more than 15% per year, with the possibility of completing installment payments in 5 years, which is the guideline. The debtor must join the Voluntarily project on its own and close the original credit limit. If every eligible KTC debtor joins the project it will have an impact on interest income reduction of about 18 million baht per month.
Meanwhile, in 2024, KTC plans to grow in 3 major businesses, including credit card business. “KTC Proud” Cash Card Loan and “KTC Pee Bem Car Exchange” Loan, with the belief that each type of loan is still in demand in the market. It will also leverage MAAI by KTC Business (My by KTC), a customer relationship management system services company, for further growth. Including the integration of 3 key elements: People – Process – Technology together as one to drive KTC to grow with sustainable efficiency
With the aim of doing business in 2024 with higher profits than in 2023, the total loan portfolio expanded by 10% under proper risk management, and the total non-performing loans were at the same level as in 2023. Total credit card spending grows K TC by 15% from 2023. “KTC Proud” Cash Card Loans aims to grow by 5%, and “KTC Pee Bem Car Exchange” Loans aims to get new loan approvals in 2024 in the amount of 6,000 million baht.
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