Corporate Information

Message from the chairman

Dear Shareholders,
The Thai economy in 2016 improved slightly from 2.9% in 2015 to 3.2% in 2016. However, it was mostly driven by public investments, tourism and private consumption, while private investments, manufacturing and exports remained flat.

Overall, the performance of IFS in 2016 was good. The Company was able to achieve a record factoring volume of Baht 27,013 million in 2016 though only a growth of 4% from Baht 25,098 million in 2015. We were able to also expand our loans & advances (including Leasing/Hire Purchase) by 105% from Baht 356 million in 2015 to Baht 730 million in 2016. With an improvement in NIM by 5% and lower provision for doubtful debts by 92% as compared to the previous year, the Company was able to report a net profit after tax of Baht 137 million or up 16% from 2015. The earnings per share of the Company was correspondingly higher from Baht 0.25 in 2015 to Baht 0.29 in 2016 or an increase of 16%.

In view of the continued good performance of the Company over these years, the Board is pleased to propose a one time, cash dividend payment of Baht 0.10 per share and stock dividend payment of Baht 0.05 per share (to the existing shareholders at the ratio of 20 existing shares per 1 new share (stock dividend) at the par value of Baht 1 per share) or in total at the rate of Baht 0.15 per share totaling Baht 70.50 million equivalent to a payout ratio of 52%. This dividend proposal will be subject to the approval of the 2017 Annual General Meeting of Shareholders to be held on 19th April 2017.

The Thai economy in 2017 is projected to be slightly better than 2016 and is projected to grow by around 3.5% - 3.8% driven mainly by higher Government expenditure and investments, the continual expansion of the tourism sector, the recovery of private consumption and investments and the gradual recovery of the export sector. Downside risks are the uncertainties of the global economy, the economic slowdown of China, the high non-performing loans of European banks and the political uncertainties following the general elections in several EU countries. However, we are cautiously optimistic and plan to continue growing our core business of factoring and equipment finance. We intend to explore new business opportunities in the CLMV countries, with Vietnam as the top priority.

In 2016, the Company applied for the Anti-Corruption Certificate from Thailand’s Private Sector Collective Action Coalition against Corruption to enhance our Good Corporate Governance (CG) as part of our commitment to Corporate Social Responsibility (CSR).

LOn behalf of the Board of Directors of IFS, I wish to express my sincere appreciation and gratitude to the shareholders, clients, business partners, bankers and all other stakeholders for your support to the Company. I would also like to thank the efforts and determination of the management and staff who have performed their duties to ensure continued success of the Company in the past year and years to come.

Tan Hai Leng, Eugene
16th February 2017