MTC Keeps its Promise! Year 2020 Profits Over 5,214 Million Baht, Maintaining Continuous Growth

MTC, the leader in motorcycle title loans and nano finance in Thailand, lives up to expectations! Showcasing a net profit in 2020 of 5,214 million baht, a 23.06% increase.

Chuchat Petaumpai, CEO of Muangthai Capital Public Company Limited (MTC), the leading motorcycle title loans and nano finance provider in Thailand, revealed that the overall performance for the year ending December 31, 2020, resulted in a net profit of 5,214 million baht, a 23.06% increase compared to 2019's 4,237 million baht. The loan portfolio stood at 70,607 million baht, a 17% increase compared to 2019's 60,253 million baht, while the Non-Performing Loans (NPLs) remained low at 1.06% of the total loan portfolio.

"The overall performance for 2020 is satisfying, despite some impact from the COVID-19 pandemic situation. Our loans growth have continued to grow well, resulting in continuous revenue and profit increase. This has been consistent since our registration in the stock market in 2014, thanks to our high-quality team and our emphasis on careful loan disbursement and efficient debt management, keeping our NPL figures below industry standards. Moreover, our fair interest rates instill trust in customers, driving them to use our services," Chuchat Petaumpai stated.

Chuchat expressed no concern about the competition in motorcycle title loans, given the market's vast size and growth potential. Currently, the company has a loan portfolio for registered motorcycles of 2 million, while the nationwide registered motorcycles exceed 21 million, with an annual increase. This continuous growth presents substantial opportunities for further expansion in the loan portfolio, despite new competitors entering the market. However, this depends on each company's marketing strategy and customer base expansion.

For the 2021 operational plan, the company aims to maintain a 20-25% growth rate in the loan portfolio, preparing to open an additional 600 branches, totaling 5,400 by year-end. This expansion aims to cater to customers with loan needs, including those facing limitations in accessing financial institution services and those relying on non-institutional loans. The company has allocated a 300 million baht investment for branch expansion.

The CEO emphasized the company's focus on motorcycle hire-purchase business in 2021, expecting a positive response from customers. Observing that some customers using motorbike title loans also intended to purchase new motorcycles from their existing customer base of over 2 million, this shift helps reduce NPL risk efficiently. It demonstrates their consistent usage of the company's loan services.