KTC Group Delivers Sustained Profit Growth on Portfolio Quality and Financial Discipline

Mrs. Pittaya Vorapanyasakul, President & Chief Executive Officer of Krungthai Card Public Company Limited (KTC), said "The consumer finance industry continued to face pressure in the first quarter, reflecting cautious lending behavior across financial institutions amid economic uncertainty. Despite these pressures, KTC was able to maintain its market position across all core products. During the first two months of 2026, our credit card receivables market share remained stable at 14.5%, while our share of credit card spending increased to 13.4% from 13.1% year on year. Personal loan receivables market share also rose to 4.2.% from 4.1%."

Mrs. Pittaya attributed the Group's performance to its continued emphasis on strict risk management and close monitoring of asset quality, supported by data?driven decision?making. "Our disciplined approach to portfolio management and cost control has enabled us to preserve a strong earnings base. In the first quarter of 2026, KTC Group delivered profit growth compared with the same period last year, demonstrating our ability to adapt to a challenging operating environment while maintaining financial stability. Credit growth during the quarter remained selective, in line with KTC's quality?first lending policy. Credit card receivables increased only marginally, reflecting cautious consumer spending and higher repayment rates. Meanwhile, the personal loan portfolio continued to expand, supported by solid demand for KTC P BERM Auto Title Loans and KTC PROUD cash cards, backed by disciplined portfolio oversight and continuous enhancement of customer benefits."

As of March 31, 2026, compared with the same period in 2025, KTC Group had a total membership base of 3,732,625 accounts. The Group's total loan portfolio amounted to 107,841 million baht, representing an increase of 0.7% year on year, while the Group's non?performing loan (NPL) ratio stood at 1.93%. The credit? card portfolio comprised 3,019,095 cards, up 8.0%, with outstanding credit card receivables and accrued interest totaling 70,443 million baht, an increase of 0.2%. Total credit card spending reached 76,800 million baht, expanding 3.7%, while the credit card NPL ratio remained at 1.12%.

The personal loan portfolio totaled 713,530 accounts, up 3.4%, with personal loan receivables and accrued interest amounting to 36,012 million baht, growing 3.3%, and an NPL ratio of 2.47%. Lease receivables stood at 1,387 million baht, declining 29.0%, in line with the company's policy to discontinue new lending in this segment since August 2023. The Group currently focuses solely on collection efforts and managing the quality of the existing portfolio.

In the first quarter of 2026, KTC Group recorded total revenue of 6,889 million baht, an increase of 0.8% year on year, driven mainly by a 1.0% rise in fee income, particularly from interchange fees and merchant service fees. Interest income for the quarter totaled 3,993 million baht, remaining broadly unchanged from the previous year. Recoveries of written?off debts amounted to 979 million baht, down 1.8% year on year, reflecting the Group's continued effectiveness in debt?collection activities amid a challenging economic environment.

Total expenses declined 6.0% year on year to 4,169 million baht, supported by a 13.0% reduction in expected credit losses due to improved portfolio quality and a 16.1% decrease in finance costs, driven by lower costs of new borrowings and disciplined expense management. As a result, the Group's cost?to?income ratio improved to 35.0%, down slightly from 35.1% in the same period last year, reflecting effective cost control alongside steady revenue growth.

KTC Group maintained a conservative financial profile, with a debt?to?equity ratio of 1.30 times, significantly below its covenant ceiling of 10 times. The low leverage reflects strong retained earnings and prudent borrowing aligned with cautious credit expansion. Total borrowings (including lease liabilities) amounted to 51,518 million baht, with 56% comprising long?term funding and 44% short?term borrowings, including bonds and loans maturing within one year. Available credit lines totaled 25,550 million baht, exceeding near?term debt maturities and underscoring the Group's robust liquidity position and financial flexibility.

KTC Group's operating strength and disciplined financial management were recently affirmed by TRIS Rating, which maintained the company's corporate and senior unsecured bond rating at "AA" with a "Stable" outlook, reflecting expectations of sustained profitability and manageable asset quality despite economic headwinds. In parallel, KTC continues to support the Bank of Thailand's responsible?lending framework, participating in assistance programs designed to help vulnerable borrowers stabilize their financial positions. The Group emphasized that these measures are not expected to have a material impact on overall performance, as adequate provisions for expected credit losses have already been recognized.

Looking ahead, Mrs. Pittaya noted that 2026 marks a transition toward a more digitally intensive operating environment, even as supply?chain volatility and household purchasing?power constraints persist. "Despite ongoing uncertainties, KTC remains agile and committed to responsible growth. We aim for continued profit growth, a 5% increase in credit card spending, and 1-2% expansion in the overall loan portfolio, supported by disciplined portfolio screening and prudent risk management. This strategy will allow us to grow sustainably while reinforcing trust and stability for investors, customers, and all stakeholders over the long term."

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