MTC Performance in Q2/2021

MTC signals positive performance, announces an increased target for loan portfolios this year, growing by 30-35% from the initial 20-25%, driven by a surge in credit demand. The expansion of branches has met goals, coupled with interest rate adjustments, supporting the growth of new customer bases. The first six months of the year saw a profit touching 2.644 billion baht, a 5.59% increase from the same period last year. Chuchat Petaumpai, CEO, mentioned a consistently positive trend for the latter half of the year, entering the planting season with increased credit demand beyond normal levels.

Chuchat Petaumpai, the CEO of Muangthai Capital Public Company Limited (MTC), a leading motorcycle title loans provider, revealed that the company's performance for the first six months of 2021 resulted in total revenue of 7.753 billion baht, up by 9.12% from the same period last year, with a net profit of 2.644 billion baht, marking a 5.59% increase from the previous year. As of Q2/2021 ending on June 30, 2021, the company and its subsidiaries recorded total revenue of 3.896 billion baht, a 9.07% increase from the same period of the previous year, with a net profit of 1.27 billion baht, up by 0.24% from the same period last year. The surge in operational performance was due to increased demand for capital caused by the ongoing COVID-19 pandemic, resulting in a higher loan portfolio of over 79.83 billion baht, a 26.37% increase from the previous year.

Simultaneously, the company has opened new branches, expanding its customer base, with 400 new branches added in the first half of the year, totaling 5,284 branches nationwide.

'In the first half of the year, the credit demand growth was significant, leading the company to revise this year's loan portfolio growth target to 30-35%, up from the initial 20-25%, as the current demand surpasses expectations due to the lingering economic slowdown from the ongoing COVID-19 pandemic. Customers faced with economic challenges, have a heightened need for capital and with reduced interest rates, accessing loans has become easier. Additionally, the increase in branches, supported by an investment of 300 million baht for further expansion, aims to reach a total of 5,500 branches by the year-end'

The CEO added that the business trend for the latter half of the year appears more promising than the first half, given the sustained high demand from customers, especially in the upcoming rainy season, where agricultural customers require increased capital for cultivation. Despite the COVID-19 situation affecting credit demand, the company must carefully vet the quality of customer credit, setting a target to control NPLs at no more than 2%. With cost-efficient management strategies in place, the company is confident in navigating through this economic crisis."