Thitikorn (TK), the country's largest provider of financing for motorcycles, plans to add four or five more branches this year and hire 200 more staff to support the expected business surge when the political storm subsides.
Meanwhile, the company reported to the Stock Exchange of Thailand that last year’s financial results missed their targets. It saw overall revenue of Bt3.88 billion, up Bt221.1 million or 6 per cent over 2012, with Bt9.06 billion in hire-purchase accounts, an increase of 4.8 per cent.
That was despite stiff competition and a sluggish economy, according to TK managing director Patama Phornprapha.
Major factors affecting TK’s business were the slump in exports since the second quarter last year and the rice-pledging scheme, which began to show problems in the fourth quarter. These weakened the purchasing power of farmers, who are TK’s main client group.
The sluggish economy and the political unrest directly affected the company’s revenue, as TK had to boost its reserves against potentially doubtful accounts since the second half of 2013.
Patama said TK posted Bt428.7 million in net profit, down Bt283.4 million or 39.8 per cent from the Bt712.1 million in 2012. Responding to the economic warning signs early last year, TK boosted its loan-loss reserves to a total of Bt1.20 billion in 2013, an increase of 24.1 per cent.
TK continues to invest in expansion, with the addition of seven new branches last year.
TK currently has 90 branches nationwide.