projecting 10% year-on-year growth as vehicle title loan portfolio continues to grow steadily
Non-life insurance premium rate revenue grew by an exceptional 50%, while fourth quarter performance is expected to reflect the TIDLOR card and agency expansion strategy.
Ngern Tid Lor Public Company Limited, or TIDLOR, reported exceptional and continued revenue growth of 3.930 billion baht in Q3/22, up from the prior year and the second quarter. Q3/22 performance is consistent with exponential growth over the previous 9 months year-on-year, driven by the successful issuance of 446,000 TIDLOR cards, as well as campaign launches, branch expansion and resilience of the economy. Strategic growth planning for the fourth quarter continues to revolve around branch expansion and the ongoing TIDLOR Card campaign.
Piyasak Ukritnukun, Managing Director, Ngern Tid Lor PLC, or TIDLOR, said: “The overall performance for the second quarter of 2022 indicates excellent revenue growth totaling 3.930 billion baht and forecasts growth of 34.5%, year-on-year, up 8.7% from the previous quarter. . Net profit of 901 million baht, up 10.9% year-on-year, is generated by the vehicle title lending portfolio and the insurance brokerage business which generates exceptional growth year-on-year and in quarter-on-quarter, in line with the growth target of 23 – 28% and 30 – 35% . As a result, the overall performance over the previous 9 months is 10.907 billion baht with a growth of 25.0% and net profit of 2.823 billion baht, up 18.9% year-on-year.
Growth in the loan portfolio in the third quarter and in the previous 9 months stems from the strategic plan expanding the development of the TIDLOR card membership, which enables rapid cash withdrawal and credit limit approval in more than 50,000 ATMs nationwide.
The TIDLOR Card Issuance currently totals 446,000 responses, reflecting the responses generated by the TIDLOR Card campaign for vehicle title loans for cars and vans from March to May 2022, as well as the overall economic outlook for recovery. NPLs increased slightly from 1.39% in Q2/22 to 1.52%, which remains controllable and below target of less than 2%.
“Third quarter performance expects net profit of 900 million baht, marking excellent growth over the previous year, although the bad debt reserve stands at 270 million baht. We are satisfied with our position firm in fixing the highest external debt reserve in the industry and confident in our decision to fix the debt reserve at an appropriate level amid the uncertainties caused by the rising cost of capital.We maintain rates of NPL or claims uncollectible at low levels relative to our competitors and other players in the finance and investment fund industry.”
Past performance testifies that Ngern Tid Lor’s strategic plan has been on track, as evidenced by the steady growth in cash withdrawal times. Additionally, the insurance brokerage business forecast remarkable growth with non-life insurance premium rate revenue totaling 1.642 billion baht, projecting 50% year-on-year growth.
“In addition, we recently launched new features on the Ngern Tid Lor app, allowing customers to renew their policy on their own through the app, giving them more convenience, saving travel time and reducing the costs of running the business,” Piyasak said.
General Manager of Ngern Tid Lor further stated, “The strategy for Q4 22 is to shift to continuous branch expansion to provide customers with convenient service. Three hundred new branches are planned and by the end of Q3/22, 1,574 outlets will be in operation nationwide. Meanwhile, we aim to focus on vehicle title lending business to help consumers gain equitable access to financial resources to increase their liquidity and funds for business expansion. The expansion of insurance brokerage business is driven by digital technology and platform development to achieve customer satisfaction in convenient services. »
The Company has built its financial structure by distributing loan sources from national and international financial institutions, in particular by issuing debt securities at an appropriate level and consistent with the average age of debtors in each period while maintaining differentials interest rates to create sustainable profits and cope with rising interest rates.
Since the Bank of Thailand (BOT) has recently taken over the supervision of hire purchase loans and the regulation of interest rate caps on installment sales is controlled by the Office of the Consumer Protection Board (OCPB), the BOT clearance 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 these loans as its main objective.