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KTC Story
Consumer Finance Industry & KTC Portfolio Performances
- Credit Card Business
- Personal Loan Business
KTC Story
Total Portfolio
12.0%
Card Spending
15.4%
NPL
1.9%
COF
3.3%
Net Profit
17.0%
Personal loan
16.9%
Credit card
10.4%
1.0%
Credit card
1.4%
Personal loan
(YoY)
(YoY)
(YoY)
NIM
15.3%
Top 10 Shareholders (as of Jun 30, 2016)
2011 2012 2013 2014 2015 2Q16
Thai Institutional Holding 51.59% 51.63% 53.18% 62.87% 72.01% 70.82%
Thai Individual Holding 38.43% 45.21% 43.45% 29.32% 21.87% 23.90%
Foreign Holding 9.97% 3.15% 3.37% 7.81% 6.12% 5.28%
Total Number of Shareholders 4,198 2,735 3,550 3,125 3,426 4,292
5
KTB
Foreign
49.45%
5.28%
Thai Institutional
Thai Individual
21.37%
23.90%
• 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 Co., Ltd. 49.45%
2 Mr. Mongkol Prakitchaiwattana 8.91%
3 Thai NVDR 4.39%
4 Ms. Chantana Jirattitepat 3.08%
5SCB DIVIDEND STOCK 70/30 LONG TERM EQUITY
FUND1.85%
6 TISCO Master Pooled Fund 1.46%
7 Thai Value Focus Equity – Dividend Fund (UOBAM) 1.42%
8 Mr. Yue Kwok-Leung 1.22%
9 EGAT Provident Fund (UOBAM) 1.01%
10 CHASE NOMINEES LIMITED 0.73%
Source: TSD
6(As of June 30, 2016)
% of Total Receivables % of Total Revenue
7
Consumer Finance Industry & KTC Portfolio PerformancesConsumer Finance Industry &
KTC Portfolio Performances
Note: Beginning at 1Q2015, calculation method of quarterly Private Consumption Expenditure has been changed from Fixed Base YearMethod (base year of 1988) to Chain Volume Measures: CVM, which all previous data since 1Q1993 have been restated
0.61 0.69 0.72 0.81 0.91 1.07 1.20 1.31 1.39 0.71
4.77 5.21 5.13
5.63 5.98
6.54 6.76 6.92 6.98
3.58
12.9% 13.2% 14.0% 14.5% 15.1% 16.4% 17.7% 18.9% 19.9% 20.0%
6M16
Baht Trillion
Total Credit Card Spending of Industry Private Consumption Expenditure Total Credit Card Spending of Industry (%)
Total Credit Card Spending Private Consumption Expenditure
10.1%
4.5%
CAGR (%)
PCE
Card
Spending
CAGR (%)
9Source: BoT & NESDB
1,567,2831,807,755 1,887,015 1,988,842
2.5%
15.3%
4.4% 4.9%
6M16
# of cards (unit)
Number of Cards Growth (YoY)
10
48.7% 48.0% 46.5% 46.0% 45.9%
51.3% 52.0% 53.5% 54.0% 54.1%
8.4% 8.9% 8.7% 9.0% 8.8%
1Q16 6M16
Commercial Banks Non Banks KTC
Market Share
6M16
27% 27% 32% 34%
5% 9%8% 7%
46%34%
33% 34%
22%
30% 27% 25%
Others
Outsources & Telesale
KTC Touch
KTB
Distribution Channels
Others: Printing Media Insertion, Marketing Events, Internet, Corporate Alliance, Take One Partner,
Network Management, Others
10.0%
9.5%
7.2%8.2% 8.4%
2.5%
15.3%
4.4%
8.0%
4.9%
1Q16 6M16
Industry KTC
%Growth (YoY)
Source: BoT & KTC
1111
120,929129,828
145,800
68,14178,664
4.0%
7.4%
12.3%11.7%
15.4%
6M15 6M16
Baht Million
Spending Growth (YoY)
11.2% 9.4%
6.6%8.2% 8.0%
4.0%
7.4%
12.3%
15.5% 15.4%
1Q16 6M16
Industry KTC
% Growth
66.3% 66.9% 66.3% 66.8% 66.5%
33.7% 33.1% 33.7% 33.2% 33.5%
10.1% 9.9% 10.5% 10.8% 11.0%
1Q16 6M16
Commercial Banks Non-Banks KTC
Market Share
Source: BoT & KTC
%NPL (90dpd) 2013 2014 2015 6M16
Industry 2.29% 2.61% 3.10% 3.13%
Commercial Bank 2.64% 3.17% 3.95% 4.01%
Non-Bank 1.75% 1.75% 1.79% 1.80%
KTC 2.19% 1.66% 1.35% 1.37%
Portfolio Quality97.8%
98.3%
98.7% 98.6%
2.2%
1.7%
1.3%1.4%
35,297
37,621
41,41241,102
2.5% 2.3% 2.0% 2.1%
6M16
<= 90 days > 90 days Delinquency
Baht Million
11.0%
9.5%
5.8% 5.6%6.2%
3.8%
6.6%
10.1%9.4%
10.4%
1Q16 6M16
Industry KTC
%Growth (YoY)
60.4% 60.8% 60.9% 60.5% 60.3%
39.6% 39.2% 39.1% 39.5% 39.7%
12.2% 11.8% 12.3% 12.8% 13.0%
1Q16 6M16
Commercial Banks Non-Banks KTC
Market Share
12Source: BoT & KTC
6M16
30% 29%38% 40%
2% 3%2% 1%
65% 64%57% 56%
3% 4% 3% 3%
Others
Outsources & Telesale
KTC Touch
KTB
Others: Internet, Marketing
Events, and Others
Distribution Channels
12.5%
3.2%
8.6%10.0%
6.8%
2.0%
8.5%
7.8% 8.4%
9.8%
1Q16 6M16
Industry KTC
%Growth (YoY)
13
638,959693,273
747,343784,395
2.0%
8.5% 7.8%9.8%
6M16
Amount %Growth (YoY)
(unit)
25.5% 24.2% 20.9% 20.3% 19.3%
74.5% 75.8% 79.1% 79.7% 80.7%
5.6% 5.9% 5.8% 5.9% 6.0%
1Q16 6M16
Commercial Banks Non Banks KTC
Market Share
Source: BoT & KTC
14Source: BoT & KTC
Baht Million16.3%
4.6% 3.8%2.8% 3.2%
14.2% 10.1%11.6%
15.0%16.9%
1Q16 6M16
Industry KTC
%Growth (YoY)
98.5%
98.8%
99.0%
99.0%
1.5%
1.2%
1.0%
1.0%
15,121
16,644
18,583
19,597
3.4% 3.2% 2.8% 2.8%
6M16
<= 90 days > 90 days Delinquency
52.9% 51.3%
48.6% 48.0% 47.4%47.1% 48.7%
51.4% 52.0% 52.6%
5.1% 5.3% 5.7% 5.9% 6.0%
1Q16 6M16
Commercial Banks Non Banks KTC
Market Share
Portfolio Quality
%NPL (90dpd) 2013 2014 2015 6M16
Industry 3.65% 4.55% 5.17% 3.22%
Commercial Bank 3.80% 4.56% 5.01% 4.39%
Non-Bank 3.48% 4.54% 5.33% 2.16%
KTC 1.47% 1.17% 1.04% 1.04%
51.954.5
60.2 60.3
45.847.1
51.4 51.2
39.441.6
45.1 45.8
6.1 7.4 8.7 9.1
7.5
6.45.9 5.6
6M16
Assets Liabilities Interest Bearing Debt Equity D/E
Baht billion
30% 31% 28%
13% 4%
57%65% 72%
41.645.1 45.8
4.4%
3.7%3.3%
6M16
Short-term Loan Long-term Loan Debentures Cost of fund
Baht billion
Total Available Credit Line = 25,290 MB KTB = 18,030 MBOthers = 7,260 MB
KTC rating : A+ by TRIS
Key B/S Figures Fund Usage
15Source: KTC
16
(1) The company’s total comprehensive income was THB 2,074 million (Other comprehensive income THB 0.9 million – net of income tax).
Million Baht (%YoY) Million Baht (%YoY) Million Baht (%YoY)
Total Revenue 14,337 10.0% 15,559 8.5% 8,437 12.6%
Bad Debt Recovery 1,766 22.1% 2,037 15.3% 1,156 20.0%
Administrative Expenses 5,377 13.2% 6,139 14.2% 3,357 17.1%
Marketing Expenses 945 43.6% 956 1.2% 536 31.8%
Fee Paid Expenses 1,180 6.4% 1,701 44.2% 1,009 37.9%
Interest Expense 1,764 (5.4%) 1,621 (8.1%) 758 (9.8%)
Pre-Provisioning Profit 7,195 12.0% 7,799 8.4% 4,322 14.2%
Write-Off and Provision 4,989 (2.0%) 5,183 3.9% 2,797 12.9%
Profit before Tax 2,206 65.7% 2,616 18.5% 1,525 16.6%
Income Tax - Income (Expense) (451) 53.2% (543) 20.3% (311) 15.0%
Net Profit (Loss) 1,755 36.8% 2,073 18.1% 1,215 17.0%
Operating ResultsY2014 Y2015(1) 6M16
Source: KTC
17
(1) Excluding Net Interchange & Marketing Expenses
Year
2014
Year
20156M16
Net Profit Margin 12.2% 13.3% 14.4%
Cost to Income Ratio 37.5% 39.5% 39.8%
Operating Cost to Income Ratio(1) 27.3% 29.4% 29.2%
Average Interest Received (including credit usage) 18.7% 18.2% 18.7%
Average Cost of Fund 4.4% 3.7% 3.3%
Net Interest Margin (including credit usage) 14.3% 14.5% 15.3%
D/E Ratio (times) 6.4 5.9 5.6
ROE 26.0% 25.7% 27.2%
ROA 3.3% 3.6% 4.0%
Allowance/Total Receivables 8.9% 8.2% 8.4%
Allowance/NPL 363.9% 399.9% 439.4%
Earning per share 6.8 8.0 4.7
Book Value per Share (Baht) 28.6 33.9 35.3
Dividend Payout Ratio 40.4% 40.4% NA
Source: KTC
18
Net Profit (MB)
2014 1,755
%Growth (YoY) – Total Port
2014 7.4%
%Growth (YoY) – Total Card Spending
2014 7.4%
% NPL – Total Port
2015 2,073 2015 10.3%
2015 15% 2015
2.4%
2.1%
2016 Maintain 2,073 MB
2016 Target ≤ 2.1%
2016 Target = 10%
2016 Target = 15%
6M16 1,215 6M16 12%
6M16
2014
6M16 1.9%15.4%
AUGUST 16, 2016
MARKETING PROGRAM
CREDIT CARD BUSINESS
- Campaigns in gas and supermarket / discount store categories to drive spending frequency
- Forever Rewards point redemption for discounts & give away premium as key mechanics
Everyday Spending
- Continue to penetrate the premium segment
- Brand visibility and privileges at leading Department stores ,Duty free ,Shopping Complex , Apparels ,Watch, Jewelry, Optical, and Cosmetic , etc.
- Forever Rewards point discount ,cash back , flexi as key mechanics
Shopping
- Continuous promotions with both large and medium chain restaurants
- Continue to expand stand alone restaurants especially the trendy and premium ones
- Expand more into the community mall diners segment
Dining
Partnering with over 100 fine hotels & resorts to launch
KTC FINE SELECTION CAMPAIGN (May-July 2016) :
Instant Privilege : up to 60% discount covering FINE TASTE (hotel dining), FINE STAY (hotel accommodations), FINE STYLE (Wedding Packages) + Lucky Draw Prizes
Hotel
Travel
พลิกปรากฎการณ์ท่องเท่ียวไทย ครั้งแรกในประเทศส าหรับการพาตามรอย
๗ โบราณสถาน และ ๕ ต านานสวุรรณภมูิเพื่อพิสูจน์เรื่องเล่าหลายชาติแห่งแผน่ดินแหลมทอง
สัมผัสสีสันแหง่ความเป็นไทย ผ่านการ บิน-เที่ยว-พกัสไตล์บตูกิเจ้าของรางวัลระดับชาติ
Thailand Boutique Awards
COLOURS of BOUTIQUE STAY packagesKTC is
the ONLY NON-tourism operator
out of 212 entries
from 71 countries worldwide
- Strong partnership with National Tourism Organizations
- A well-balanced of domestic and outbound creative partnership programs
- Exceptional achievement in GLOBAL TOURISM ARENA
from our BREAKTHROUGH campaigns
International Spending
- Spending volume growth 33% YoY
- Continue to offer privileges at top merchants in top spending countries & leverage special offers from key partners : Visa, MasterCard and JCB
International spending ‘cash back’ campaign : 1 Jun – 30 Sep
Special privileges
at top spending countries from Visa
An exclusive International spending campaign collaborate with Korea ‘Lotte Duty Free’
Special privileges in Japan from
JCB-------
Both travel related
services and top
merchants
Occasional Purchase• Offer flexi 0% all product categories• Capture seasonal period to promote seasonal campaigns:
Cooling Fair, TV Special, Mobile / Gadget New Model Launch, Gold Special Rate, School Break
• Secure position at major events: TME, Commart, Power Buy Expo, HomePro Expo, HomeWork and PowerBuy Super Sale
Major events
Seasonal Campaigns
Flexi 0% Promotions
- > 260 hospitals nationwide with KTC privileges, plus special offers in health check-up packages
- Special membership offers from leading gyms / fitness
- Beauty campaigns with Flexi 0% installment
Sports , Health & Beauty
- cash back up to 15% when redeem Forever Rewards points in an amount
equivalent to the amount spent online per transaction
- special privileges at more than 50 leading online websites (discount, extra Forever Rewards points, flat discount with minimum purchase, etc)
Online Spending
- Multi-channel : www.ktc.co.th/ushop , print, &
- More than 10,000 merchandises from renowned brands
- Card usage privileges + Forever Rewards redemption choices
KTC Mail Order Privileges
• Forever Reward Points remain our key marketing tool in most promotions Loyalty Rewards
- Dining privileges in > 300 restaurants especially in the tourist destinations
- Promotions in every day spending category eg. Local supermarkets and discount stores
- Expand points redemption in local department stores/ shopping centers- Special privileges at local souvenir shops
Upcountry Privileges
Wholesale
Supermarket
Department
Store
Souvenir
Shop
- KTC brand visibility and usage promotions at consumer fairs - both national and partner level
- High traffic events : , IT , Mobile , Shopping , Auto , Sports , & Hobbies (pets, books, toys, etc)
- Forever Rewards points redemption for further discount
Books Pets Sports Auto
Shopping
Events
Toys
Mobile / IT
Household Appliances
Marketing ProgramPersonal Loan
Q3-4 2016
Free up to 600 baht gift voucherNew approved member
during 1 Sep – 31 Dec 2016
Note :• Free gift voucher for the first 2 cycles only• Registration required via SMS or www.ktc.co.thwithin January 15, 2017
KTC PROUD Off-line Acquisition promotionTo achieve new member target of Year 2016
Voucher 300 bahtIF maintain principal 18,000 baht everyday
for each cycle
GOOGLE SEM
KTC PROUD Online AcquisitionInfluence and create call for action online
Who have needed in cash:Optimize Google search
Via SEM both generic and brand key word
Feb – Dec 16
CustomersSearch
ClickOn the link
Leave message Telesales call back in 2 hrs
(weekday)Name / Mobile / email
Current KTC PROUD member
Maintain cash withdraw
Prevent card switching
Create Long team relationship
• Current member who withdraw and maintain outstanding balance every 2,000 B get 1 right to win the lucky draw • SMS registration is required, Campaign starts 1 June- 30 Sep, 2016
• 1st Prize : Big C voucher 40,000 Baht+ Cash back 60,000 B total 10 prizes• 2nd Prize : Big C voucher 1,000 Baht total 100 prizes•Total 110 prizes, valued 1,100,000 Baht
Less customer burden throughout the year via Mass Activation Program
• Current member who withdraw and maintain outstanding balance every 2,000 B get 1 right to win the lucky draw • SMS registration is required, Campaign starts 1 Oct - 31 Jan, 2017
• 1st Prize : Debt clear 120% : 3 prizes• 2nd Prize : Debt clear 10% : 200 prizes
Less customer burden throughout the year via Mass Activation Program
More chances to wipe out debtswith 3 rounds and More Prizes
Disclaimer: This presentation is intended only for use by Krungthai Card Public Company Limited (KTC). No copy or use of this presentation should occurwithout the permission of KTC. KTC retains all intellectual property interests associated with the presentation. KTC makes no claim, promise, or guaranteeof any kind about the accuracy, completeness, or satisfactoriness of the content of the presentation and expressly disclaims liability for errors andomissions in such content
THANK YOU
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