Thai lender Heng Leasing Plc has reported total revenue of 2.12 billion baht and net profit of 461 million baht for 2022, a year-on-year increase of more than 30%.
Following effective management of debtors, the company also reduced its level of non-performing loans (NPLs) to 3%.
Based on the improving performance and outlook for loan demand in response to the economic recovery, the company's board approved a dividend payment of 0.0666 baht per share at its meeting on Feb 17.
The list of shareholders entitled to receive dividends is determined on March 3 (the record date), with the dividend payment made on May 12.
Sutharntip Phisitbuntoon, chief executive of Heng Leasing, said last year the total loan portfolio expanded to 12.0 billion baht, a year-on-year gain of 31%.
She attributed the success to efficient provision of loan services as the company opened 678 service branches nationwide, broadening its reach to new customers who regularly use loan services.
The secured loan portfolio accounts for 95% of the total loan portfolio and can be categorised based on loan type, consisting of 56% hire-purchase loans and 39% car title loans. The remaining 5% are mortgages.
In addition, revenues from life insurance and non-life insurance brokerage fees grew by 88% year-on-year.
The return on hire-purchase loans is 15%, close to the government interest rate, illustrating good profitability, said Ms Sutharntip.
The company's strategic plan involves providing more car title loan services to drive growth. The average return on loan services for the year was 18%.
With effective debtor management, the cost of provisioning receivables was reduced to 4.5%, from 5.9% previously, and NPLs were reduced to 3%, compared with a target of 3.1%.
The lending market outlook this year is continued expansion thanks to ongoing demand, she said.
The trend is in line with the local economic recovery and improving tourism.
The company aims to increase its total loan portfolio to 14.4 billion baht while adhering to sustainable principles when conducting business.