Ngern Tid Lor Public Company Limited (TIDLOR) has disclosed its Q2/2023 performance, reporting a net profit of 927 million baht. Impressive vehicle title loan portfolio expansion and robust growth in the insurance brokerage business. The quarter's prosperity underscores the triumph of strategic plans that leverage technology for bolstering business potential, while effective NPL management maintains a modest 1.54% rate. Furthermore, the quarter's success is attributed to prudent Credit Cost controls.
Piyasak Ukritnukun, Managing Director of TIDLOR, affirmed, "The Q2/2023 performance mirrors sustained growth in both insurance brokerage and vehicle title loan segments. Despite grappling with inflationary pressures and rising interest rates, TIDLOR has propelled net profits to 927 million baht from the preceding quarter."
A pivotal strategy involves augmenting the capital reserve to align with the ongoing expansion of loan portfolios and prevailing economic uncertainties. This adjustment addresses capital cost in response to shifting interest rate policies and market dynamics.
The insurance brokerage division registers robust and consistent expansion, notably evident in Q2/2023. Non-life insurance premiums have surged by 28.9%, attributed to the growth of digital channels and the Areegator platform. An ambitious target of 20-25% growth for the non-life premium segment is set for the upcoming year.
Q2/2023 showcases a remarkable performance in vehicle title loans, with outstanding credit reaching 87,245 billion baht, a remarkable 23.5% increase Y-o-Y. The subsequent goal is to achieve 10-20% growth by year-end, underscored by stringent loan approval policies and prioritized capital management. The prowess of technology-led operations further augments customer service and differentiates TIDLOR from its market counterparts.
The TIDLOR Card remains a pivotal driver for business expansion, enjoying increased adoption among vehicle title customers encompassing motorcycle, passenger car, and pickup truck owners. As of June 2023, over 576,000 TIDLOR Cards have been approved for issuance.
Elevating sustainable growth is paramount, anchored in stringent loan quality control and comprehensive risk management protocols. The NPL ratio by the close of Q2/2023 stands at a commendably low 1.54%, outperforming industry standards. Simultaneously, Credit Cost has been fine-tuned to a range of 3.00-3.35%, a reduction from the initial 3.00%-3.50% projection.
TIDLOR remains steadfast in its high capital reserve strategy and pledges to enhance digital efficiency while investing in technology. This ensures sustainable business expansion, reducing reliance solely on branch expansion. Stay Informed: For investors and the interested public, updates on TIDLOR can be found at
www.tidlorinvestor.com.