‘Ngern Tid Lor’ reinforces strong Q3/2021 performance, making net profit of 813 million baht, growing 5% from previous quarter. This follows continuous increase in interest income from growing loan portfolio, while financial costs and NPL rates decreased due to new debenture issuance and prudent lending. This reflects rapid adaptation and a business model focusing on developing innovation and technology as well as continuously expanding branch networks. Setting growth targets in the final quarter after the government opens the country and relaxes lockdowns further, expecting to support overall economic recovery, resulting in good demand for loans and car insurance purchases. Delighted with customer response to 0% cash installment for car insurance up to 10 months.
Mr. Piyasak Ukritnukun, Managing Director of Ngern Tid Lor Public Company Limited, revealed that Q3/2021 performance created strong continuous growth despite challenges from economic impacts during the enforcement of lockdown measures to stop the spread of COVID-19. However, since September, signs of good recovery in demand for loans and insurance began to show after the government started relaxing lockdown measures, resulting in improved loan and insurance business situations approaching normal conditions. The company generated Q3/2021 revenue of 2,922 million baht, growing 9% compared to the same period last year, and net profit of 813 million baht, growing 5% from the previous quarter.
The performance for the first 9 months of this year showed a satisfactory growth rate from interest income increasing 11% from the same period last year, and non-life insurance premiums growing 44% from the same period last year. Financial costs decreased after offering new debentures with low interest rates. The Non-Performing Loan (NPL) rate decreased to 1.41% compared to the previous quarter at 1.56%, reinforcing efficient management, rapid adaptation, and the strength of the business model focusing on developing innovation and digital technology to drive the organization. For example, the Tidlor Card innovation increases convenience for customers, allowing cash withdrawal from approved credit lines via nearly 40,000 leading commercial bank ATMs nationwide, 24 hours a day. Over 218,000 cards have been issued as of the end of Q3.
Meanwhile, the company aggressively expands its branch network continuously to increase service channels for customers. As of the end of Q3, there were 1,260 branches open nationwide. It focuses on efficient operating expense management reflected in the Cost to Income ratio which continuously decreased, consistent with decreased financial costs after the company listed on the Stock Exchange of Thailand in May. It received an upgraded corporate credit rating and unsubordinated, unsecured debenture rating from TRIS Rating Co., Ltd. to level A with a Stable outlook.
Mr. Piyasak continued that the company targets driving performance growth in the final quarter in both the market-leading vehicle title loan business and insurance broker business expansion, including expanding branch networks this year to approximately 1,285 branches to better reach target customer groups. It is expected that opening the country to foreign tourists and considering further relaxation of lockdown measures will positively affect the overall economy and loan demand of small entrepreneurs in various business sectors to enhance liquidity or prepare for investment to accept opportunities from economic recovery, and car insurance purchases to support travel. Starting October 1, 2021, customers buying car insurance with cash from 16 leading companies can pay Tidlor insurance installments at 0% for up to 10 months, up from 6 months (equal payments every installment), and receive immediate coverage upon the first payment. This received good feedback from the increased proportion of customers buying Type 1 insurance, positively affecting insurance premiums in October which grew from the previous month.
“Although Thailand faced economic problems from COVID-19, Ngern Tid Lor passed through very well. This makes us even more confident that driving the organization with innovation, using technology to increase service potential and reach customers comprehensively, along with business operation experience and deep customer understanding, will allow us to overcome the economic crisis from now on and grow stably and sustainably, ready to handle future competition,” Mr. Piyasak said.