TIDLOR's 2023 Success: High Profit, Low NPL, Tech Leverage

TIDLOR's 2023 Success: High Profit, Low NPL, Tech Leverage

TIDLOR's 2023 financial report highlights record profits, controlled NPL, and strategic tech utilisation for sustainable growth in lending and insurance.

TIDLOR Announces Strong 2023 Performance with Record High Net Profit of 3,790 Million Baht, Maintains Low NPL at 1.45% and Leverages Technological Strength for Sustainable Growth in Both Lending and Insurance Brokerage Businesses.

Ngern Tid Lor Public Company Limited (TIDLOR) has disclosed its 2023 performance, with the company continuing to focus on its financial inclusion mission through its two core businesses: lending and insurance brokerage. The results were in line with expectations, achieving a new high with total revenue of 18,972 million baht, representing a 24.2% year-over-year (YoY) increase, and a net profit of 3,790 million baht, up by 4.1% YoY.

The outstanding loan portfolio continued to expand as targeted, reaching an outstanding loan portfolio amount of 97,456 million baht, a growth of 19.9% YoY. The overall loan portfolio quality remained well-controlled, evidenced by a reduction in the non-performing loan (NPL) percentage from the previous year, maintaining a low level of 1.45%. Furthermore, the insurance brokerage business has seen continuous growth, achieving its set goals. The total non-life insurance premium for 2023 stood at 8,743 million baht, marking a 25.3% YoY increase. Moreover, there has been an improvement in the Cost-to-Income ratio, which has decreased to 54.9%, indicating efficient expense management.

The key drivers supporting business growth were investment strategies and technological development, highlighted by the success of the Tidlor Card and Ngern Tidlor application, which have experienced a continuous increase in usage. By the end of 2023, over 644,000 Tidlor Cards had been distributed, with a 29.6% YoY increase in users. Furthermore, the introduction of the “E-withdrawal” feature through the Ngern Tidlor application towards the end of 2023 has emerged as another primary channel for customer usage. Additionally, the company provides a comprehensive range of customer service channels (Omni-Channel), including over 1,678 physical branches, online channels, and digital platforms.

Additionally, the company's insurance brokerage business, ranked as the number 1 face-to-face retail-focused insurance broker, stands as another key contributor supporting the company’s performance growth. In 2023, the insurance brokerage business maintained its growth momentum, achieving a total non-life insurance premium value of 8,743 million baht, marking a 25.3% year-over-year (YoY) increase. This growth was notably driven by both branch channels and the Areegator platform, as well as the strong performance of the online insurance broker, 'heygoody'. This robust expansion through comprehensive service channels reflects the company's dedication to developing and significantly enhancing access to insurance services.

For the year 2023, the Company witnessed robust income growth, effective cost control, proficient asset quality management, and the setting aside of appropriate and adequate loan loss reserves to accommodate future business expansion and risks associated with economic revitalisation. Moreover, the Company prioritised cultivating a healthy portfolio within a stringent and efficient risk management policy, enabling the Company to generate decent profits while maintaining a strong financial position.

Additionally, in the previous year, TIDLOR continued to maintain its corporate credit rating and unsubordinated bond rating at 'A', with a 'Stable' credit rating outlook from TRIS Rating. This is currently considered the highest credit rating among peers and has received a CGR 5-star or 'Excellent' CG Scoring, reflecting its operation in accordance with ethical corporate governance principles, conducted transparently, with high standards, and under the supervision of governmental regulators.

Piyasak Ukritnukun, Managing Director, stated that the overall performance in 2023 reflected the outcomes of strategic investments in a high-potential business, insurance brokerage, along with investments in technology evident through the success of Tidlor Card and the development of features in the application that meet customer needs. During the more friendly economic environment of the past, we took a long-term view and continued to invest. We are starting to see the payoff of those investments in better experiences for our customers and solid performance, even in deteriorated economic conditions. More importantly, last year we continued to invest and launched new businesses like ‘heygoody’ and upgraded our core business as seen in our branch productivity at 58 million baht per branch. Remarkably, we enter the year 2024 as one of the few nonbanks with sufficient credit lines and a strong balance sheet due to adequate reserves. These will help us support our underbanked clients who are still in need of access to credit and insurance products. For the operational goals of 2024, it has set its sights on achieving growth at a rate of 10-20% across both its loan and insurance brokerage businesses. Investors and those interested can follow news and information about TIDLOR on the website www.tidlorinvestor.com.

Do you like the content of this article?