SET-listed Krungthai Card (KTC), a non-bank business under Krungthai Bank (KTB), posted net profit growth of 20% in 2022, thanks to Thailand's economic rebound and improving tourism after the country's reopening.
KTC reported consolidated net profit of 7.07 billion baht for 2022, an increase of 20.4% year-on-year.
The company booked total outstanding loans of 104 billion baht last year, rising 12.5% from the previous year, according to the company's statement to the Stock Exchange of Thailand.
The improved 2022 result was mainly supported by the country's economic recovery, increasing domestic spending and the accelerated tourism sector.
Positive feedback from the reopening in many countries is another key factor contributing to the country's economic rebound.
The company's two core businesses, credit cards and personal loans, booked a 2022 growth rate higher than targeted at 15.4% and 10.4% year-on-year, respectively.
For the credit card business, KTC showed spending growth of 22.6% for the first 11 months of 2022, in line with the overall industry's growth rate of 22.4%.
Credit card spending continued to rise after consumers resumed the lifestyles they led prior to the pandemic.
The country's reopening led to a surge in foreign tourist arrivals and a resurgence in business activities. Therefore, credit card spending is expected to continue to grow in 2023.
The credit card and personal loan businesses will grow at an accelerated rate by focusing on gaining new customers as well as marketing activities in accordance with the changing circumstances.
The company expanded its car title loan business, KTC P Berm Car For Cash, at around 1.05 billion baht, lower than expected.
The company has improved internal operations and adjusted business strategies from the third quarter last year and it is ready to grow the car title loan aggressively this year, KTC chief executive Rathian Srimongkol said.
"We'll focus on cooperating closely with KTB, so that the KTC P Berm portfolio will achieve the new booking target of 9 billion baht by the end of 2023," he said.
For auto hire-purchase loans, KTB Leasing has acquired the loan portfolio from KTB and plans to focus on commercial loans, targeting loan growth of 3 million baht this year.
The company continues to offer the loan service to individuals but with the focus on customers with high credit quality.
