“LEADER IN THAILAND'S MICROFINANCE”
The Company aims to maintain a growth rate of 20% annually from 2024 to 2026
The Company has a goal to expand its branches by an average of 600 branches per year
The Company will achieve the highest amount of loans per employee comparing to others in the same industry
The Company will focus on the monitoring and debt management using MTC Model as a tool.
The Company will provide service excellence for the highest customer satisfaction.
Muangthai Capital Public Company Limited and its subsidiary ("The Company") was founded by Mr. Chuchat Petaumpai and Mrs. Daonapa Petampai since 22 May 1992.
The company operates as a Non-Bank Financial Institution, providing mainly Vehicle Title Loan to retail customers (Microfinance) under a Personal Loan licensed by the Bank of Thailand. The eligible vehicles are registered motorcycle, car, pickup car, and tractors with the Land Transportation Department. In additions, the company has extended its product line to cover Land Title Loan and Nano Finance Loan in order to better response to customer’s needs. Moreover, the company also operates as an insurance agent selling the Compulsory Third Party Insurance to the customers and interested people.
Shareholding Structure of the Group
The Company provides vehicle title loans to retail customers with a personal loan business license under the supervision of The Bank of Thailand. Such personal loan business license permits to collect interest rates up to 24 percent per annum. The different types of vehicles covered by insurance include motorcycles, cars, pickups and agriculturalvehicles registered with the Department of Land Transport.
The company provides loan services with land title deeds as collateral. By considering the credit limit in proportion to the value of the land. The interest rate is not more than 15 percent per year.
The Company provides unsecured personal loans with a personal loan business license, for the customers who have a previous vehicle title loan installment history with the Company and good payment history only. As it is a grant of unsecured loan, such license to operate a personal loan business allows the interest collection for not more than 25 percent year.
The Company has provided nano finance loans with the microfinance business license under the supervision of the Bank of Thailand. The nano finance business license permits for collecting the interest at the rate of not over 33 percent annum and it is an unsecured loan. The objective is to provide career loans only to customers who have a history of installment of vehicle title loans with the Company before and have a good payment history.
The Company operates under the Muangthai Leasing Company Limited (“MTLS”). Operates the new motorcycle leasing to customers having the vehicle title loans with the Company who have good payment history and want to buy a new motorcycle by leasing through the Company’s branches.
The Company operates under Muangthai Leasing Insurance Broker Company Limited. MTLI engages in the insurance broker business including Compulsory Third-Party Insurance (CTP) and personal accident insurance. The non-life insurance policies having MTLI as the broker for distributing are the Victims Insurance Policy for Motorcycle Accident, Victims for Automobile Accident, Insurance Policy for lost car, and personal accident insurance policy to facilitate customers.
The Company provides credit services under the name of Muangthai Pay Later Company Limited. MTPL installment loan service for electrical equipment and general equipment under the slogan “Buy Now Pay Later” by leasing through the Company’s branches.
Strengths and Strategies
The company focuses on growth by expanding the customer base through the expansion of branches to cover all areas in the country. The ultimate goal is to help improving financial inclusion of those unable to access funding from commercial banks by being their alternative funding sources with fair and transparent financial costs. The company believes that distributing financial access to the people will help reduce financial inequality in the country which is the cornerstone of a sustainable economic system.
and continues to focus on expanding our service channel to cover all regions in Thailand from provinces to districts, districts to sub-districts
Comparison of population vs number of branches by region in 3Q2023 Total 7,365 branches 66 million people
As of the end of 3Q2023.
Company's History and Milestones of Success
30 Years of MTC
At the beginning, the Company had the registered capital with the total of 2 million baht, and its operations are to offer hire purchase loans to all brand new and used motorcycles through its dealers in Phisanulok and other provinces in the lower northern region, such as Sukhothai, Kamphaeng Phet, Pichit, and so on. The target customers were people with daily or monthly regular incomes, agriculturists, and self-employed individuals. After that, the Company extended its product lines by offering a vehicle title loan to a customer with complete payment of his or her loan amount. In addition, the Company further extended its product lines by introducing an automobile title loan and an agricultural vehicle title loan to serve different groups of customers. In 2001, The company was renamed Muangthai Leasing Company Limited on 28 August, 2001; moreover, the Company discontinued the hire purchase loan, due to a highly-competitive market in which many motorcycle manufacturers and dealers started offering the hire purchase loan for their own customers.
“INTIMATE SERVICES LIKE CLOSED
As the Company's main target customers are local people in different regions, building healthy relationships with customers is a key success as stated the company's slogan, "Intimate services like closed family members." With this practice, the Company has built on trust with customers, and the Company has continually expanded its branches to cover more service areas throughout the country in order to support the business growth. As of 30 September 2023, the Company had 7,365 branches throughout the country.
- The Company was confirmed its rating on the BBB+ level with the stable outlook by TRIS rating, the creditrating agency, even in the situation of the Coronavirus epidemic which has caused fluctuations in theeconomy worldwide.
- MTC has been ranked in the Thailand Sustainability Investment (THSI) Index List from The Stock Exchange of Thailand for 4 consecutive years.
- MTC has been assessed by MSCI on its environmental, social and corporate governance performance or ESG, at “AA” level in the Consumer Finance sector.
- The Company has been announced the result of corporate governance assessment of listed companies in The Stock Exchange of Thailand for the year 2021 as being in the “Excellent” level (5 stars) for the 5 consecutive years, which is assessed by institute of Directors Association Thai Company (IOD)
- MTC was awarded the “Thailand’s Top Corporate Brands 2022” for the 2 consecutive years, with the highest corporate brand value in the finance and securities business sector. This award is the result of a research worked on “Measurement of corporate brand values in ASEAN and in Thailand for the year 2022” of the Master of Science Program Brand Management and Marketing, the Faculty of Commerce and Accountancy, Chulalongkorn University.
- At the Company’s Board of Directors’ meeting held on 8th November 2022, the Board of Directors has a resolution to establish of the capital increase of, Muangthai Pay Later Co., Ltd. (“MTPL”) as a subsidiary in the amount of 900 million Baht from the original registered capital of 100 million Baht to 1,000 million Baht (10 million common shares at the price of 100 Baht per share) The Company holds shares in the proportion of 99.99%.
- The Company was confirmed its rating on the BBB+ level with the stable outlook by TRIS rating, the credit rating agency, even in the situation of the coronavirus epidemic, Covid-19, which has caused fluctuations in the economy worldwide.
- MTC has been ranked in the Thailand Sustainability Investment (TSHI) Index List from the Stock Exchange of Thailand for 3 consecutive years.
- MTC has been assessed by MSCI on its environmental, social and corporate governance performance or ESG, at “A” level in the Consumer Finance sector for 2 consecutive years.
- MTC has been selected as a member and ranked in the FTSE4 Good Index Series in the FTSE4 Good Emerging Index by FTSE Russell at a 3.5 out of 5 scale, or equaled to 1.4 times the industry average score.
- MTC received a 2021 GLOBAL BANKING & FINANCE awards, organized by Global Banking & Finance Review in the field of “The Next 100 Global Awards 2021”, a group of non-bank financial institutions. and is the only Thai company to receive the award.
- The Company has been announced the result of corporate governance assessment of listed companies in the Stock Exchange of Thailand for the year 2021 as being in the “excellent” level (5 stars) for the 4th consecutive year, which is assessed by the Institute of Directors Association. Thai Company (IOD)
- MTC was awarded the “Thailand’s Top Corporate Brands 2021” with the highest corporate brand value. in the finance and securities business sector. This award is the result of a research worked on “Measurement of corporate brand values in ASEAN and in Thailand for the year 2021” of the Master of Science Program Brand Management and Marketing, the Faculty of Commerce and Accountancy, Chulalongkorn University
- At the Company’s Board of Directors’ meeting held on 18 October 2021, the Board of Directors has a resolution to establish a new subsidiary, Muangthai Pay Later Co., Ltd. (“MTPL”), with 99.99% ownership interest which has its registered capital in amounting to Baht 100 million (1 million ordinary shares at Baht 100 per share). The Company paid for share subscription of Baht 50 million to MTPL in November 2021.
- The Company was confirmed its credit rating on BBB+ level and stable outlook by TRIS rating, the credit rating agency, even in the situation of COVID-19 which has caused fluctuations in the economy worldwide.
- The Company was rated A by MSCI ESG Index.
- The company was selected as one of the Thailand Sustainability Investment (THSI) and participated in the calculation of the SET THSI Index for the second consecutive year.
- The Company was selected in FTSE4Good Index for the first year.
- The Company supported customers and other stakeholders during the COVID-19 outbreak.
- The Company, for the first time, received ASEAN Asset Class PLCs 2019 by ASEAN Capital Market Forum (ACMF).
- The Company was awarded the Royal Award of Thailand Corporate Excellence Awards 2020.
- The Company, received an honor award from SET Awards 2020.
- The Company received a credit rating upgraded from BBB to BBB+ by Tris Rating
- The Company, for the first time, initiated the retail investor scheme by issuing Public Offering (PO) Bonds.
- The Company was included in FTSE Mid Cap Index calculation.
- The Company received A Rating in MSCI ESG Index.
- The Company extended its new product line, Hire & Purchase of new motorcycle.
- The Board of Directors was awarded, the first time, "Board of the Year" from IOD Thailand.
- The company has been certified that it has passed a self-assessment process that has a policy and a complete internal anti-corruption guideline in accordance with the criteria of the Private Sector Collective Action Against Corruption - CAC).
- The company was selected as one of the Thailand Sustainability Investment (THIS) and participated in the calculation of the SET THSI Index for the first year.
- The Company’s name, Muangthai Leasing Public Company Limited, was renamed to Muangthai Capital Public Company Limited on 26 April 2018.
- New branches were launched to expand its service areas in each region; 81 branches in the North, 231 branches in the North-East, 456 branches in the Central, and 87 branches in the South. The total number of new branches was 855.
- Muangthai Capital 4.0 App was launched in order to increase customers’ experience of balance checking.
- The sixth auction center was established in Ratchaburi Provice to operate the auction activities for the Northern region, started since 27 April 2018.
- Opened more branches to expand service areas in each region; 66 more branches in the North, 226 more branches in the North-East, 389 more branches in the Central, and 79 more branches in the South. Total number of new branches was 760 branches.
- Launched more channel for customer to pay back through Big C , Tesco Lotus and AirPay
- Opened the fifth auction center in Nakhon Ratchasima province to facilitate the auctions for branches throughout the North Eastern region. The first auction was on 27 July 2017.
- Opened more branches to expand service areas in each region; 87 more branches in the North, 282 more branches in the North-East, 282 more branches in the Central, and 73 more branches in the South. Total number of new branches was 724 branches.
- Launched more channel for customer to pay back through counter services
- Launched a new product of Land title deed loan (personal loan with land title deed as collateral).
- Started a Nano Finance business with a permission granted from Ministry of Finance dated 26 May 2015.
- Expand branch network in the Southern region by opening the first southern branch in Suratthani province.
- Opened the third auction center in Chonburi province to facilitate the auctions for branches throughout the Central and the Eastern region. The first auction was on 21 February 2014.
- Opened the fourth auction center in Khonkaen province to facilitate the auctions for branches throughout the North Eastern region. The first auction was on 20 March 2014.
- The annual general shareholders’ meeting in 2014 which was arranged on 28 April 2014 has approved the Company to proceed the followings:
- Transforming to public company limited
- Changing the par value of 100 baht per share to 1 baht per share
- Increasing the registered capital of 545 million baht so that the Company’s capital increased from the former 1,575 million baht to 2,120 million baht, by issueing 545 million new common shares with the par value of 1 baht with the allotment as follows:
- 502.50 million right-offering shares offered to the public
- 42.50 million right-offering shares offered to directors, executives and employee of the Company and/or its subsidiary
- On 26 November 2014, the Company’s common shares was started trading in the Stock Exchange of Thailand for the first time. As of 31 December 2014, the Company has total 506 branches.
- Increased the registered capital of 315 million baht, from 1,260 million baht to 1,575 million baht, by issuing new common stock of 3,150,000 shares with the par value of 100 baht. The shares were offered to the existing shareholders and the fund were used for expanding lending portfolio.
- Increased the registered capital of 160 million baht, from 1,100 million baht to 1,260 million baht, by issuing new common stock of 1,600,000 shares with the par value of 100 baht. The shares were offered to the existing shareholders and the fund were used for expanding lending portfolio.
- Opened the first and second car auction centers, in Phitsanuloke province and Ayudhaya province to facilitate the auctions for branches throughout the Northern, the Central and the Eastern region.