Post on 15-Apr-2017
transcript
KTC Story
Consumer Finance Industry & KTC Portfolio Performances
- Credit Card Business
- Personal Loan Business
4
11.7%
Credit card spending
Credit Rating
A-/Stable
Net Profit
26%
1,039 MB
Collection Service Outsourcing
in MAY
Total Portfolio
7.7% 8.9%Credit card
Personal loan
5.8% NPL2.2%
Personal loan1.0%
Credit card
1.4%
4.1%Cost of fund
Source: TSD
KTB 49.45%
Thai Institutional
16.88%
Thai Individual
27.43%
Foreign 6.24%
Top 10 Shareholders (as of June 30, 2015)
2011 2012 2013 2014 Jun 30, 2015
Thai Institutional Holding 51.59% 51.63% 53.18% 62.87% 66.33%
Thai Individual Holding 38.43% 45.21% 43.45% 29.32% 27.43%
Foreign Holding 9.97% 3.15% 3.37% 7.81% 6.24%
Total Number of Shareholders 4,198 2,735 3,550 3,125 3,421
5
1 Krung Thai Bank Public Co., Ltd. 49.45%
2 Mr. Mongkol Prakitchaiwattana 8.58%
3 Thai NVDR 6.58%
4 Mr. Sataporn Ngamruengpong 2.59%
5 Ms. Chantana Jirattitepat 1.38%
6 Mr. Yue Kwok-Leung 1.33%
7 Thai Value Focus Equity – Dividend Fund (UOBAM)
1.22%
8 State Street Bank and Trust Company 0.97%
9 TISCO Master Pooled Fund 0.86%
10 EGAT Provident Fund (UOBAM) 0.80%
Total Credit Card Spending & Private Consumption Expenditure
Source: BoT and NESDB
Private Consumption Expenditure Total Credit Card Spending of Industry
Total Credit Card Spending of Industry (%)
0.46 0.54 0.61 0.69 0.72 0.81 0.91 1.07 1.20 1.31 0.66
4.25 4.57 4.77 5.21 5.13 5.63 5.98 6.52 6.72 6.88
3.4410.8% 11.8% 12.9% 13.2% 14.0% 14.5% 15.1% 16.5% 17.8% 19.0% 19.2%
0%
10%
20%
30%
40%
0
2
4
6
8
10
6M2015
8
Baht trillion
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
10.1% 10.0%9.5% 8.6% 8.5% 8.2% 7.5%
-5.6%
2.5%
15.3%12.9%
12.7% 12.6% 12.3%
2012 2013 2014 1Q15 Apr-15 May-15 Jun-15
Industry KTC
49.1% 48.7% 48.0% 47.6% 47.5% 47.3% 46.9%
51.0% 51.3% 52.0% 52.4% 52.5% 52.7% 53.1%
9.1% 8.4% 8.9% 9.0% 9.0% 9.0% 9.1%
1Q15 Apr-15 May-15 Jun-15
Commercial Banks Non-Banks KTC
9
%Growth (YoY)
Market Share
1,528,921 1,567,283
1,807,755 1,895,916
6M15
# of cards (unit)
%Growth (YoY) -5.6% 2.5% 15.3% 12.3%
Number of Cards
Y2011 Y2012 Y2013 Y2014 6M15
23% 26% 27% 27% 29%
7%5% 5% 9% 8%
42% 34%46% 34% 34%
29% 34%
22%
30% 29%Others
Outsource & Telesales
KTC Touch
KTB
Others: GSB, Printing Media Insertion, Marketing Events, Internet, Corporate Alliance, Take One Partner,
Network Management, Others
Distribution Channels
6M14 6M15
116,236120,929
129,828
61,02968,141
10
Total Spending
65.3% 66.3% 66.9% 67.2% 66.8% 66.3% 67.2%
34.7% 33.7% 33.1% 32.8% 33.2% 33.7% 32.8%
10.8% 10.1% 9.9% 10.1% 10.6% 10.6% 10.4%
1Q15 Apr-15 May-15 Jun-15
Commercial Banks Non-Banks KTC
18.7%
11.2%9.4%
8.0%5.2%
6.6%
9.1%
5.0% 4.0%
7.4%
11.0% 9.8% 11.1%
16.0%
2012 2013 2014 1Q15 Apr-15 May-15 Jun-15
Industry KTC
%Growth (YoY)
Baht million
Market Share
Market Share
14.3%
11.0%9.5%
8.7%7.3% 7.7%
7.3%
1.0%
3.8%
6.6%7.9% 7.3% 7.6%
8.9%
2012 2013 2014 1Q15 Apr-15May-15 Jun-15
Industry KTC
11
Portfolio
Portfolio Quality
%Growth (YoY)
6
1.9%2.5% 2.3% 2.3%
-
0.02
0.04
0.06
0.08
0.10
0
5
10
15
20
25
30
35
40
45
6M15
<= 90 days > 90 days Delinquency (31-90 days)
2.2%1.4%
2.7%
1.7%
(Baht million)
37,621 35,297
34,007
37,226
59.7% 60.4% 60.8% 60.5% 60.3% 60.3% 60.3%
40.3% 39.6% 39.2% 39.5% 39.7% 39.7% 39.7%
13.0% 12.2% 11.8% 12.4% 12.5% 12.5% 12.5%
1Q15 Apr-15 May-15 Jun-15
Commercial Banks Non-Banks KTC
%NPL (90dpd) 2012 2013 2014 1Q15 2Q15
Industry 1.93% 2.29% 2.61% 3.05% 3.23%
Commercial Bank 1.99% 2.64% 3.17% 3.81% 4.16%
Non-Bank 1.85% 1.75% 1.75% 1.89% 1.82%
KTC 2.73% 2.19% 1.66% 1.56% 1.42%
10.8%
16.1%
3.2% 2.2% 2.6% 4.0% 5.4%7.3% 2.0%
8.5% 7.9% 8.0% 7.9% 7.7%
2012 2013 2014 1Q15 Apr-15 May-15 Jun-15
Industry KTC
23.6% 25.5% 24.2% 23.8% 23.5% 23.1% 22.5%
76.4% 74.5% 75.8% 76.2% 76.5% 76.9% 77.5%
6.3% 5.6% 5.9% 5.9% 5.9% 5.9% 5.8%
1Q15 Apr-15 May-15 Jun-15
Commercial Banks Non-Banks KTC
12
%Growth (YoY)
Market Share
Distribution Channels
626,326 638,959693,273 714,708
6M15
%Growth (YoY) 7.3% 2.0% 8.5% 7.7%
(unit)
Number of Accounts
Y2011 Y2012 Y2013 Y2014 6M15
20%33% 30% 29%
39%3%
3% 2% 3%
2%
72%
61% 65% 64%57%
5% 3% 3% 4% 3%
Others
Outsource & Telesales
KTC Touch
KTB
Others: Internet, Marketing
Events, and Others
20.5%
16.3%
4.6%4.7% 4.4% 4.1%4.2%
4.1%
14.2%10.1%
7.6% 7.0% 6.1%5.8%
2012 2013 2014 1Q15 Apr-15 May-15 Jun-15
Industry KTC
13Source: BoT & KTC
Personal Loan Portfolio
Market Share %Growth (YoY)
97.5% 98.5% 98.8% 99.0%
2.5%
1.5%
1.2% 1.0%
2012 2013 2014 6M15<=90 days >90 days
15,12116,644
13,242
16,769(Baht million)
Delinquency(31-90dpd)
2.1%
3.4%3.2% 3.1%
53.1% 52.9% 51.3% 51.4% 51.1% 51.0% 50.8%
46.9% 47.1% 48.7% 48.6% 48.9% 49.0% 49.2%
5.1% 5.1% 5.3% 5.3% 5.3% 5.3% 5.3%
1Q15 Apr-15 May-15 Jun-15
Commercial Banks Non-Bank KTC
1
%NPL (90dpd) 2012 2013 2014 1Q15 2Q15
Industry 2.98% 3.65% 4.55% 4.94% 4.96%
Commercial Bank 3.15% 3.80% 4.56% 5.04% 5.05%
Non-Bank 2.79% 3.48% 4.54% 4.83% 4.87%
KTC 2.55% 1.47% 1.17% 1.10% 1.02%
Portfolio Quality
58
4.1%
6M15
Short-term Loan Long-term Loan
Debentures cost of fund
49.1
51.9
54.5 53.8
43.9 45.8
47.1 46.1
38.7 39.4 41.6 41.4
5.2 6.1 7.4 7.7
8.5 7.5
6.4 6.0
6M15
Assets Liabilities Interest Bearing Debt Equity D/E
14
Fund UsageKey B/S Figures
41.639.4
Sources: KTC
38.7
14
Total Available Credit Line = 23,220 MB KTB = 18,030 MBOthers = 5,190 MB
Baht billion Baht billion
41.4
15Sources: KTC
Million Baht (%YoY) Million Baht (%YoY) Million Baht (%YoY)
Total Revenue (excluding extra income) 13,036 3.3% 14,337 10.0% 7,494 8.9%
Bad Debt Recovery 1,446 21.3% 1,766 22.1% 963 15.4%
Administrative Expenses 4,750 -27.6% 5,377 13.2% 2,868 14.4%
Marketing Expenses 658 -66.4% 945 43.6% 407 -2.2%
Fee Paid Expenses 1,109 -33.2% 1,180 6.4% 732 31.8%
Interest Expense 1,865 -3.9% 1,764 -5.4% 840 -4.1%
Pre-Provisioning Profit (exc. extra income) 6,421 56.0% 7,195 12.0% 3,786 8.2%
Write-Off and Provision 5,090 44.1% 4,989 -2.0% 2,477 0.7%
Profit (loss) before Tax (exc. extra income) 1,331 127.8% 2,206 65.7% 1,309 26.1%
Income Tax - Income (Expense) (295) -10.6% (451) 53.2% 270 27.5%
Net Operating Profit
(excluding extraordinary items)
Extraordinary income 307 - - - -
Income tax - income (expense) of Extraordinary items (61) - - - -
Net Profit (Loss) 1,283 1,755 36.8% 1,039 25.7%
1,039 25.7%
6M15Operating Results
Y2013 Y2014
1,037 306.6% 1,755 69.3%
16
* Excluding Net Interchange/Marketing Expenses/Loss from impairment assets in 2012/Acquisition** Excluding extraordinary items related to the sale of the investment
Year
2012
** Year
2013
Year
20146M15
Net Profit Margin 2.0% 8.0% 12.2% 13.9%
Cost to Income Ratio 52.0% 36.4% 37.5% 38.3%
Operating Cost to Income Ratio* 30.1% 28.0% 27.3% 29.1%
Average Interest Received (including credit usage) 18.2% 18.2% 18.7% 18.7%
Average Cost of Fund 5.0% 4.8% 4.4% 4.1%
Net Interest Margin (including credit usage) 13.2% 13.4% 14.3% 14.6%
D/E Ratio (times) 8.5 7.5 6.4 6.0
ROE 5.1% 18.3% 26.0% 27.6%
ROA 0.5% 2.1% 3.3% 3.8%
Allowance/Total Receivables 7.3% 8.8% 8.9% 8.7%
Allowance/NPL 195.2% 292.9% 363.9% 392.8%
Earning per share 0.99 4.02 6.81 4.03
Book Value per Share (Baht) 20.1 23.8 28.6 29.9
Dividend Payout Ratio 40.4% 40.2% 40.4% N/A
17
Net Profit (MB)
2012
2014
255
1,037
1,755
2013*
%Growth (YoY) – Total Port
2012
2013
2014
1.6%
6.5%
7.4%
%Growth (YoY) – Total Card Spending
2012
2013
2014
5.0%
4.0%
7.4%
% NPL – Total Port
2012
2013
2014
3.8%
3.0%
2.4%
*Excluding extraordinary items related to the sale of the investment
2015: Target growth = 10-15% 2015: Target growth = 10%
2015: Target growth = 15% 2015: Target Maintained
6M15 1,039 6M15 7.7%
6M15 11.7% 6M15 2.2%
The year of “Moving Forward”
“STRENGTHEN” Portfolio
“GROW”Share of Wallet
The growth continues >>>>>>>>>>>>>>>>>>>>>
“Grow”
Share of Wallet
“Top of Mind” Brand
“Affirm Leadership”
In Loyalty campaign & Digital mkt
“Strengthen” Portfolio
To Be “NO. ” Preferred Card
19
KTC - Bangchak CardRe-communicate card features & benefits to the cardholders
New CardmembersUsage activation program
“Strengthen”
Portfolio
• Targeted approach• Re-communicate co-branded card that drives acquisition and strengthens
partnership
Frequency for Occasional usersEncourage everyday spending and usage familiarity to become ‘Front of Wallet”
Credit Line IncreaseProactively monitor credit line increase needs to increase customer convenience
Segmentation Approach To ensure relevancy, increase response rate and satisfaction
20
Stand Alone Restaurants
Key Chain Restaurants (Forever Rewards / privilege)
Corporate Chain Dining Campaign Medium Chain Restaurants
“Grow “ Share of Wallet
Dining• “Must Have” card in wallet for dining privileges
• Enhance spending in the key chain & stand alone restaurants
21
“Grow “ Share of Wallet • A wide variety of shopping experiences
• “Value for Money” using Forever Rewards and cash back offer
• Strengthen relationship with “premium brands” ShoppingDepartment Store & Shopping Complex Outlet Mall & Duty FreeCosmetics
Point discount & cash back
Point discount Top spender
Point discount & cash back
Point discount
Point discount & cash back
Gift with purchasePoint discount & cash back
Apparel & Jewelry Grocery
Flexi & cash back
Point discount & cash back Cash back
Flexi & cash back
Point discount & cash back
1,000 points = 100 Baht
Cash back
by Gift Voucher
Cash back by Gift voucher
22
All gas stations, outside InApril - June
Alliance with Toyota Thailand, both new car and after sales service
Tire Program “Flexi” + Cash Back : key brands
April - May
April - May
“Grow “ Share of Wallet
Gas & Auto
• Drive “value for money” benefit for Gasoline, using Forever Rewards as tool to enhance everyday usage.
• Additional car related benefits that create mega & holistic “automotive” impact
23
Extensive Travel Privileges both Local & Inter
“Grow “ Share of Wallet
Travel & Leisure
• Expand partners & privileges for holistic travel experience• Delivering optimum flying satisfaction • Capitalize on local and International partners for best benefits
to travelers
One stop travel service
24
“Grow “ Share of Wallet
Hotel Marketing
• Strengthen high-end privileges while securing the variety offer for mass target• Cover wide range of privileges both Hotel accommodation, and upper dining• Exclusive program with key strategic partners , with the untapped opportunity
“wedding”
Hotel Accommodations Hotel Dining
Wedding
25
1 Mar – May’ 5 1 Apr – May’ 51 Apr – 31 May’15 1 Jun’15 – 31 Jul’161 Jun – 3 Jul’
Exclusive Promotion with very popular restaurant in Chiangmai
Free Instant Premium for
local shopper in TDP
Exclusive Promotion with UD Town; very popular
Community Mall in NE
Long-term Discount at local restaurant in Huahin
“Grow “ Share of Wallet
UPC marketing
• Aggressive expansion to 14 Key Provinces by securing long term
privileges at local partners , covering restaurants and community mall
• More exclusive TDP program, creating “the everyday” spend for local
shoppers
26
Cash Back for all spending in foreign currency
“Grow “ Share of Wallet
Overseas Spending
• Generate card usage of premium card segment with the continuity
of overseas spending promotion
27
KTC Corporate online promotion Credited cash back 15% when redeem Forever Rewards points in an amount equivalent to the amount spent online per transaction
Online promotion with key strategic online partners500THB off with Asiabook.com
500THB off with Luxola.co.th
450THB off with Lazada.co.th 300THB off with Zalora.co.th 12% off with Tohome.com 5% off with Dtac.co.th
300THB off +5% with Directtoshop.com 250THB off with Konvy.com 10% off with Ensogo.co.th
Plus enjoy online privileges up to 35 leading online partners : please visit www.ktc.co.th/shoponline
Affirm “Leadership “ in
Digital Mkt.• Continue momentum through both Corporate promotion & Joint
promotion, with key strategic online partners
28
Affirm “Leadership “ in
Digital Mkt.
• Intelligent Digital Platform through Online Channels
(Mobile/ Smart Devices [TapKTC] & Website/ PC/ Laptop [ClickKTC])
• Convenience & User-friendly
• Secure & Consistent with Standard Monitoring Process
29
Big Point Redemption more than 90 partners involved
Point donation with Operation Smile
Recurring Campaign with partner’s offer on-top
Affirm “Leadership “ in
Loyalty
• Maintain category rhythm momentum through big “Forever Fever” campaign
• Create “WOW” effect “Monthly surprise” to reward customer while
strengthening partner relationship
• CSR campaign , leverage point for donation with Operation Smile Thailand
• Enhance Recurring usage via KTC offer, with partner on top
30
•
• Increase brand awareness via marketing activities • Selected communication media to maximize effectiveness I
“Top of mind”
KTC Brand
New look of my world magazine
New KTC world website Testimonial approach
Premium look materials
Visibility all around
31
สนใจสมัครบัตรไดท้ี ่02 665 5000
ตดิตาม ขา่วสารสทิธพิเิศษ ดีๆ จาก เคทซีี
ไดท้ี ่ www.ktc.co.th
32
Campaign objective:• To strengthen loan equity “fast approval”• To create “Pull Strategy acquisition ” via KTC TOUCH
Launched Jul 16, 2015
34
ดอกเบีย้ฯ
ราคาเดียว199
ใช้เทา่ไหร่ก็จ่าย
One Price 199-
Only 199B. Interest for each cycle• If maintain principal 18kB everyday for each cycle• Interest 199 baht lasts for the first 2 cycles• Register via SMS/website
Jan – Apr’15 May – Aug’15
KTC PROUDNew Acquisition Promotion
September – December 2015
35
Clear 100% : 6 prizesClear 10% : 360 prizes
Mechanic is every 2,000 B incremental of outstanding bal. get 1 right Register via sms & website by Dec’ 5
Campaign period 1 June – 20 Dec 2015
More chances to wipe out debtswith 6 rounds and More Prizes 366
All seasons KTC helped wiped out debts from almost 3,000 members with over 9 million baht
36
Already Rewarded 191 Prizes Including Gold Necklace and Goat-Shaped Gold Pendant Worth Over 1 Million Bahtto lucky KTC PROUD members by July 2015
37
Disclaimer: This presentation is intended only for use by Krungthai Card Public Company Limited (KTC). No copy or use of this presentation should occur without the permission of KTC. KTC retains all intellectual property interests associated with the presentation. KTC makes no claim, promise, or guarantee of any kind about the accuracy, completeness, or satisfactoriness of the content of the presentation and expressly disclaims liability for errors and omissions in such content