MTC Advances Towards World-Class Microfinance, Announces 0.21 Baht/Share Dividend, Targets 20% Loan Portfolio Growth in 2024

Muangthai Capital Public Company Limited (MTC) is advancing towards becoming a global leader in microfinance. In 2023, the company achieved a net profit of 4,906 million baht. The board has approved a cash dividend payment of 0.21 baht per share, with the XD (ex-dividend) date set for April 29. Executive “Parithad Petampai” targets a 20% growth in the loan portfolio for 2024 and is confident in keeping NPL (non-performing loans) below 3.2%. The company is preparing to issue new debentures with interest rates ranging from 4.30% to 4.95%, expected to be offered for sale from March 5-7.

Mr. Parithad Petampai, Deputy Managing Director of Muangthai Capital Public Company Limited (MTC), revealed that the company's performance in 2023 continued to grow robustly and met the set targets despite high market competition, a global economic slowdown, geopolitical conflicts, and the highest policy interest rates in a decade, which have pressured consumer purchasing power and debt repayment capabilities. Nevertheless, the company has adjusted its business strategies by tightening loan disbursements and supporting customers facing debt repayment issues, in line with the Bank of Thailand's sustainable debt resolution policy. In Q4 2023, MTC reported total revenue of 6,555 million baht, a 16.8% increase compared to the same period last year when total revenue was 5,611 million baht. The net profit for the quarter was 1,351 million baht. As of the end of 2023, the outstanding loan portfolio stood at 143,318 million baht, marking an 18.8% growth compared to 120,613 million baht in the previous year. The total revenue for 2023 was 24,526 million baht, a 22.2% increase from 20,068 million baht in the prior year, with a net profit of 4,906 million baht for the year.

Additionally, the company’s board of directors resolved to approve a cash dividend payment of 0.21 baht per share for the operating period of 2023 (January to December 2023). The XD (ex-dividend) date is set for April 29, 2024, with the dividend payment scheduled for May 16, 2024.

For the 2024 business plan, the company aims to increase loan disbursements across all products by 20%, raising the outstanding loan portfolio from 143,318 million baht to 170,000 million baht. This goal is to be achieved through the company's network of over 7,500 branches, with the objective of promoting financial inclusion nationwide. The company plans to enhance customer service to create a positive experience across all dimensions and meet international standards. Additionally, the company aims to keep the non-performing loan (NPL) ratio below 3.2%. Funding plans include borrowing from both domestic and international financial institutions and issuing debentures.

From March 5-7, 2024, the company plans to issue and offer three sets of debentures. A term of 2 years and 8 days with an interest rate of 4.30% per year, a term of 3 years and 7 days with an interest rate of 4.80% per year and a term of 4 years and 5 days with an interest rate of 4.95% per year. Interest for these debentures will be paid every 3 months throughout their term. The debentures have been rated BBB+ for creditworthiness, matching the company’s BBB+ corporate credit rating with a “Stable” outlook, as assessed by TRIS Rating Co., Ltd. on January 29, 2024.

The Deputy Managing Director of MTC stated, “We have begun to see positive signs of economic recovery in the private consumption and tourism sectors. Additionally, customers' debt repayment capabilities are improving. However, the anticipated downward trend in policy interest rates in the second half of 2024 is expected to be a significant factor contributing to the improvement of NIM.”

MTC is committed to elevating its loan services to provide high-quality financing with world-class standards (World Class Thai Microfinance). This effort aligns with collaborations with several international organizations, such as the Japan International Cooperation Agency (JICA) and the German Development Bank (KFW DEG). These partnerships aim to mobilize financial resources to comprehensively support the public, adhering to principles of good governance, respecting rights, safeguarding interests, and exceeding customer expectations to ensure the highest level of satisfaction.

MTC has been rated “Excellent” (5 stars) for its corporate governance, and received an ESG Rating of “A” from the Stock Exchange of Thailand. Additionally, MTC has achieved a rating of “AA” in the MSCI Index. These accolades reflect the company's leadership in responsible and fair microfinance lending. MTC is dedicated to fostering financial stability, strengthening the economic system, and achieving sustainable growth alongside Thai society.