Group Lease (GL), the SET-listed digital finance company, registered its highest quarterly net profit for 11th consecutive quarter thanks to profit generated from regional investments.
The company reported total revenue of 886.31 million baht in the second quarter, up 25.1% quarter-on-quarter, and 337.69 million baht for net profit, up 31.7% quarter-on-quarter.
Chairman of the executive board Tatsuya Konoshita said the company received net profit from its business operating in the region, with Cambodia the biggest contributor at 42% of profit, followed by Thailand at 40%, Sri Lanka at 10.9%, and 4.1% for Laos.
"The net profit contribution from Indonesia and Myanmar was only 1.5% in the second quarter as it is still the initial stage, [but] brighter growth is expected in the near future," said Mr Konoshita.
The company reported revenue derived from interest income for the hire purchase business at 538.06 million baht, growing by 9.30% year-on-year and contributing to 70% of total revenue.
Revenue from the asset-backed loan business was 39.37 million baht, surging 46% year-on-year.
Revenue from interest on loan receivables was 125.99 million baht, up 8.87% year-on-year.
The group loan segment, known as loans provided to a group of up to five persons, started to generate income -- some 7 million baht -- in the second quarter.
"We are also doing this business in Myanmar and Indonesia and I think that by the next two or three years, we will see very significant progress on this product," he said.
Mr Konoshita said customers for group loans have increased to 20,000 from around 10,000 at the end of first quarter.
The company plans to expand this business from three provinces to six in Thailand, with further expansion anticipated in Myanmar.
In terms of revenue contribution from this segment, Thailand remains the major contributor with 56.7%, followed by Cambodia at 36.7%, Laos at 3.6%, and the rest coming from Indonesia and Myanmar.
The company's total loan portfolio at the end of the second quarter was registered at 10.25 billion baht, with Thailand contributing 45.3%, Cambodia 49%, Laos 3.7%, Indonesia 0.7%, and Myanmar 1%.
Non-performing loans climbed to 138.97 million baht in the second quarter, up from 132.41 million logged at year-end 2016. However, the percentage of the total loan portfolio declined to 1.36% from 1.37%.
"The Cyprus borrowers repaid US$12 million in the second quarter, and the Singapore borrowers repaid $15 million in July," said Mr Konoshita.
GL shares closed yesterday on the Stock Exchange of Thailand at 20.60 baht, an increase of 20 satang, in trade worth 130 million baht.
