Ngern Tid Lor PCL shows 2021 performance with net profit of 3,169 million baht, increasing 31% from the previous year. Strong growth in both vehicle title loan and insurance brokerage businesses, especially in Q4 which saw impressive recovery after city reopening, including the launch of 0% car insurance installment for up to 10 months which received excellent feedback. Financial costs and NPL rates are at low levels, supporting outstanding full-year performance. The Board approved dividend payment in both cash and stock dividends.
Mr. Piyasak Ukritnukun, Managing Director of Ngern Tid Lor Public Company Limited or TIDLOR, revealed that the company was able to turn around Q4/2021 performance to grow strongly after the city reopening and relaxation of lockdown measures enforcement. This is reflected in the vehicle title loan portfolio expanding by 9% from Q3, while non-life insurance premiums grew as high as 60% from the previous quarter as well.
The vehicle title loan portfolio expanded to 61,500 million baht, coming from increased loan demand of SMEs entrepreneurs and retail entrepreneurs to enhance liquidity and prepare for business expansion when the economy recovers. The insurance brokerage business had fee income increase by 35% from the same period last year due to good response from allowing customers to pay car insurance installments at 0% with cash for a maximum period of 10 installments, up from 6 installments, providing immediate coverage upon the first installment payment. Financial costs decreased after the company received an upgraded corporate credit rating and unsubordinated, unsecured debenture rating from TRIS Rating Co., Ltd. to level A with a Stable outlook in May last year. Additionally, the company implemented prudent loan consideration policies and effective debt collection, resulting in Credit Cost decreasing compared to the same period last year. While maintaining NPL rate at a low level and continuously decreasing to 1.19% from the previous quarter's 1.41%, with allowance for doubtful accounts to non-performing loans ratio remaining high at 357%.
Overall 2021 performance achieved a net profit of 3,169 million baht, a 31% increase from the previous year. The vehicle title loan portfolio continued to expand, growing 20% last year reaching 61,500 million baht, and total non-life insurance premiums were 5,220 million baht, growing over 30% from 2020, maintaining the No. 2 rank of non-life insurance broker focusing on retail. This reflects the company's strength from aiming to drive the organization with digital technology and innovation in loan and insurance products. The company received good response from providing ‘Tidlor Card‘ service to facilitate vehicle title loan customers, allowing cash withdrawal according to the received limit from nearly 40,000 leading commercial bank ATMs nationwide. As of the end of Q4/2021, almost 300,000 Tidlor cards were issued. Including having Omni-Channel service channels for customers, both digital platforms and branches. As of the end of 2021, the company had a total of 1,286 branches open for service, increasing from 1,076 branches in 2020.
Most recently, the Company's Board of Directors meeting on February 21, 2022, resolved to propose to the Annual General Meeting of Shareholders to approve a dividend payment at the rate of 0.559 baht per share. Paying cash dividend at the rate of 0.274 baht per share and stock dividend at the rate of 13 existing shares per 1 stock dividend, or equivalent to a dividend payment rate of 0.285 baht per share. In case any shareholder has a fraction of existing shares after stock dividend allocation, cash will be paid instead of stock dividend at the rate of 0.285 baht per share. The Record date for shareholders entitled to receive dividends is April 29, 2022, and dividend payment to shareholders will be on May 20, 2022, after receiving approval from shareholders.
Mr. Piyasak said that the trend of the vehicle title loan market is expected to have a better growth rate than the previous year. While insurance purchase demand tends to improve from 2021 after the government relaxed lockdown measures and reopened the country to welcome foreign tourists again, including using various economic stimulus measures which will positively affect the overall economy and domestic consumption recovery, causing increased demand for loans to expand businesses and buy insurance to reduce risks.
Therefore, the company targets expanding branches by not less than 300 more locations to increase service access channels for customers, and focuses on presenting products and services that answer customer needs, including continuously developing innovation and digital technology to increase customer service capabilities.