The revenue generated by the non-life insurance premium rate yielded outstanding growth of 50% while the Q4 performance is expected to reflect TIDLOR Card and branch extension strategy.
Ngern Tid Lor Public Company Limited, or TIDLOR, announced continuous outstanding Q3/22 revenue growth of 3.930 billion baht, up from the previous year and the second quarter. The Q3/22 performance corresponds with exponential growth in the previous 9 months Y-o-Y, generated from the success of the 446,000 TIDLOR Card issuance along with the campaigns launches, branch extension, and resilient economy. The strategic growth planning for Q4 continues to pivot around branch extension and the ongoing TIDLOR Card campaign.
Piyasak Ukritnukun, Managing Director, Ngern Tid Lor PLC, or TIDLOR, stated: “The overall performance of Q2/2022 indicates excellent growth in revenue totalling 3.930 billion baht and projecting growth of 34.5%, Y-o-Y, up by 8.7% from the previous quarter. The net profit of 901 million baht, up by 10.9% Y-o-Y, is generated by the vehicle title loan portfolio and insurance brokerage business which yields exceptional growth Y-o-Y and Q-o-Q, in line with the growth target of 23 – 28% and 30 - 35%. As a result, the overall performance during the previous 9 months accounts for 10.907 billion baht with 25.0% growth and net profit of 2.823 billion baht, up by 18.9% Y-o-Y.”
Credit loan portfolio growth in Q3 and the previous 9 months stems from the strategic plan extending TIDLOR Card membership development which enables speedy cash withdrawal and credit limit approval at over 50,000 ATMs nationwide. TIDLOR Card Issuance currently totals 446,000 reflecting responses generated by the TIDLOR Card campaign for vehicle title loans for cars and pick-up trucks during March to May 2022 as well as the overall recovering economic outlook. NPLs slightly increased from 1.39% in Q2/22 to 1.52% which remains controllable and under the set target rate of less than 2%.
“The Q3 performance is projecting net profit of 900 million baht, marking excellent growth from the previous year, although the bad debt reserve was at 270 million baht. We are happy with our strong stance in setting the highest reserve for external debt in the industry and confident in our decision setting the debt reserve at an appropriate level amid the uncertainties caused by rising capital cost. We sustain NPL or bad debt rates at low levels compared to competitors and others in the finance and investment fund sector.”
The past performance testifies that Ngern Tid Lor strategic plan has proceeded along the right path as evidenced by steady growth of cash withdrawal times. Furthermore, the insurance brokerage business has projected remarkable growth with non-life insurance premium rate revenue totalling 1,642 billion baht, projecting growth of 50% Y-o-Y.
“Besides, we recently launched new features on the Ngern Tid Lor application, enabling customers to renew their policy on their own via the application which gives them convenience, saves travelling time, and reduces the company’s cost of operation,” said Piyasak.
The Ngern Tid Lor Managing Director further stated that, “The strategy for Q4/22 is to pivot to continuous branch extension to offer customers convenient service. Three hundred new branches are planned and by the end of Q3/22, 1,574 outlets will be in service nationwide. Meanwhile, we aim to focus on vehicle title loan business to help consumers gain fair access to financial resource to increase their liquidity and funds for business extension. Insurance brokerage business expansion is driven by the digital technology and platform development to achieve customer satisfaction in convenient services.”
The Company has constructed its financial structure by distributing loan sources from domestic and international financial institutions, including issuing debt instruments at an appropriate level and consistent with the average age of debtors in each period while maintaining interest rate differentials to create sustainable profits and cope with rising interest rates.
As the Bank of Thailand (BOT) has recently taken charge supervising hire purchase loans and regulation of hire purchase interest rate ceilings is controlled by the Office of the Consumer Protection Board (OCPB), BOT authorization will not affect the Company's performance as the main income portfolio comes from loans with car registration as collateral and continues to focus on such loans as a main focus.
Source: Bangkok Post