TIDLOR Announced a Strong 2023 Performance with a New High Net Profit of 3,790 Million Baht, Maintaining Low NPL at 1.45% and Leveraging Technological Strength for Sustainable Growth in Both Lending and Insurance Brokerage Businesses.

 

Ngern Tid Lor Public Company Limited (TIDLOR) disclosed the year 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 on track as planned, achieving a new high with total revenue of 18,972 million baht, an increase of 24.2% YoY, and a net profit of 3,790 million baht, an increase of 4.1% YoY.

The outstanding loan portfolio continued to expand as targeted, with an outstanding loan portfolio amount of 97,456 million baht, growing by 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 the set goal. The total non-life insurance premium for the year 2023 stood at 8,743 million baht, marking an increase of 25.3% YoY. 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 stemmed was investment strategies and technological development, highlighted by the achievements of Tidlor Card and Ngern Tidlor application which have seen a continuous increase in usage. By the end of 2023, there have been over 644,000 Tidlor Card distributed, with a user increase of 29.6% YoY. Furthermore, the introduction of the “E-withdrawal” feature through the Ngern Tidlor application towards the end of 2023 has emerged as another main channel for customer usage. In addition, the company provides a comprehensive range of customer service channels (Omni-Channel), encompassing over 1,678 physical branches, online channels, and digital platforms.

Additionally, the company's insurance brokerage business, which is ranked as the number 1 face-to-face retail-focused insurance broker, also stands as another key contributor to support 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% YoY increase. This growth was notably driven by both branch channels and Areegator platform, as well as the strong performance of the online insurance broker ‘heygoody. This strong 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, and proficient asset quality management as well as setting aside appropriate and adequate loan loss reserves to accommodate the future business expansion and risks associated with economic revitalization. Moreover, the Company also prioritized cultivating a healthy portfolio within a stringent and efficient risk management policy, enabling the Company to generate decent profit while maintaining a strong financial position.

Additionally, in the previous year, TIDLOR continues 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 overall performance in 2023 reflected the outcomes of our strategic investment in a high-potential business, insurance brokerage, along with investments in technology which are 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