Thai Credit Bank Public Company Limited (CREDIT) announced financial results for Q4 2024, achieving a record-breaking net profit of THB 1,192.4 million, a remarkable increase of 61.1% compared to the same period last year. This performance highlights the bank's robust growth potential despite ongoing economic challenges.
In Q4, Earning Per Share (EPS) was THB 0.97, while for fiscal year of 2024, EPS stood at THB 2.95. The bank continued to implement its prudent and cautious strategy to navigate economic volatility.
Key factors for driving this profit growth was the continuous expansion of loan portfolios and strong risk management. As of the end of 2024, the total loan amount stood at THB 163,158.6 million, an increase of 13.2% compared to the previous year. Additionally, the bank achieved a 10.5% increase in net interest income, attributed to loan growth. At the same time, the bank effectively managed expenses by maintaining a low cost-to-income ratio of 39.9% in 2024. The net interest margin (NIM) also remained high at 8.6% during the same period.
The bank's loan operations experienced growth across all major portfolios compared to the previous year. Notably, Micro SME loans (MSME) grew by 12.8%, home loans expanded by 14.4%, and personal loans achieved remarkable growth of 114.8%. During this period, the bank maintained commitment to prudent and responsible lending practices, supported by flexible operations and effective risk management.
In terms of risk management, the bank successfully maintained a non-performing loan (NPL) ratio of 4.4% as of December 31, 2024, aligning with the bank's guidance. Meanwhile, the credit cost ratio, which represents credit losses relative to average loans, decreased from 2.94% to 2.65% compared to the previous year. The reduction reflects a significant improvement in expected credit losses, driven primarily by a decline in new non-performing loans (NPLs), supported by an improvement in debt management and recovery.
Mr. Roy Agustinus Gunara, Chief Executive Officer of Thai Credit Bank Public Company Limited (CREDIT), stated that amidst the uncertainties and challenges, the bank continued to focus on customer's needs and to strengthen our business operation to deliver sustainable growth and achieve the best financial performance for all our stakeholders. We have built a strong foundation with a unique business model by utilizing digital technology that enables us to efficiently adapt to challenging environment while also preparing for new opportunities for continuous growth.
For the year 2025, the bank continues to target consistent double-digit growth in loans. It expects the net interest margin (NIM) will be in the range of 8.5-9.0%, while maintaining a stable cost-to-income ratio and improving the non-performing loan (NPL) ratio below 4.5%.
The key strategies driving these goals comprise three main aspects: 1) core business growth, 2) digital transformation, and 3) growing the new business. All of these align with the bank's long-term operational plan to support sustainable growth in the future.
In 2024, the bank was immensely proud to receive the highest corporate governance rating of "Excellent" (5 stars) for Thai listed companies from the Thai Institute of Directors (IOD) and the Stock Exchange of Thailand. Furthermore, the bank was recognized and honored with awards from various government agencies and organizations throughout the past year, highlighting outstanding performance and exemplary practices.
Over the years, the bank has focused on driving change to achieve sustainable growth under the philosophy "Everyone Matters." This approach underscores transparency in operations and inclusiveness. Furthermore, the bank has consistently provided financial literacy education to communities, reinforcing commitment to responsible lending and serving the underserved.
Thai Credit Bank prioritizes the ongoing development of products and processes to enhance the customer experience and effectively meet their needs. The bank also emphasizes the integration of technology into service delivery to ensure fair and equal access to financial services for all. With a focus on fostering long-term financial well-being and stability for customers, the bank remains dedicated to elevating financial services sustainably and responsibly in all dimensions.
Source: Thai Credit Retail Bank