Corporate Information

Message from the chairman

Dear Shareholders,

2018 was another good year for the Company as we managed to achieve a record net profit after tax of Baht 166.23 million, an increase of 10% over the previous year. Earnings per share of the Company was correspondingly higher by 3 Satang per share or up 10% from 2017 to Baht 0.34 per share in 2018.

Therefore, we are proposing a dividend payment of Baht 0.17 per share or 17 Satang per share for the Fiscal Year 2018 totaling Baht 83.89 million or 50.47% of the net profit. This is in accordance with the dividend policy of the Company of not less than 50% of the net profit after provision for legal reserve and subject to the approval of the 2019 Annual General Shareholders’ Meeting to be held on 22nd April 2019.

2018 Business Review

In 2018, IFS was able to achieve a record factoring volume of Baht 32,075 million or a growth of about 8%. Although our loans & advances portfolio (including Leasing/Hire Purchase) contracted by around 7% from Baht 422 million in 2017 to Baht 394 million in 2018, it was due mainly to a more robust credit screening and assessment process. As a consequence, total operating income increased by 10% to Baht 451.49 million. Net interest income rose to Baht 259.27 million or up 9%, while non-interest income (fees, commissions, and other income) rose to Baht 118.75 million or up 13% from the previous year, partly offset by an increase in operating expenses of 8% to Baht 160.38 million, and a slight increase in provision for doubtful debts of Baht 0.45 million to Baht 5.41 million.

Business Strategy

2019 could be a challenging year for the Company. The Thai economy is poised to weaken from 4.1% in 2018 to 3.8% due to global economic slowdown, trade tensions between the US and China, and declining growth in Thai exports.

Nevertheless, we will endeavor to continue growing our business but cautiously and sustainably. We will continue to focus on growing our core business of factoring and equipment finance but with prudence and discipline in credit risk management. We intend to remain a leader in the Factoring Industry of Thailand.

The Board remains mindful of the interest of shareholders and will continue to strive to maximize the returns. We will continue to explore new business initiatives to expand our revenue base and to expand the range of our financial services to better serve and support the SMEs of Thailand. We plan to take advantage of our international links through FCI, a worldwide factoring chain with more than 400 members in more than 100 countries, to capture more international flows such as Import and Export Factoring, and this will further support SMEs who engage in international trade.

Corporate Social Responsibility

With the belief that the Company’s success must come with good corporate principles to guide us towards sustainable growth, IFS has embraced the Corporate Governance Code for Listed Companies 2017 issued by the Securities and Exchange Commission as guidelines for the Board to steer the Company towards sustainability.

As a commitment to our social and environmental responsibility, IFS realizes and emphasizes the importance of the support and promotion of community and society via various programs, for instance, water and energy preservation, to modernize our legacy operational system platform (which is designed to reduce our reliance on paper, manual processes and improve clients’ experience), employees’ sharing and public service activities for holistic social and environmental development in a sustainable mode.

Fighting against all forms of corruption is also high on IFS’ agenda. The Company has been certified as a member of the Private Sector Collective Action Coalition against Corruption (CAC) since 2017. All of our Staff, Management and Directors are required to recap and acknowledge our Anti-Corruption Guidelines and Procedures every year.

Appreciation

On behalf of the Board of Directors, I would like record our appreciation to Dr. Thamnoon Ananthothai and Khun Niphat Chamroonrat who stepped down as our directors in April 2018 for their contributions to the Board. I would also like to welcome Khun Churairat Panyarachun to the Board.

My appreciation also to the shareholders, clients, business partners, bankers and all other stakeholders for their continuous support. Last but not least, I would also like to thank the management and staff for their commitment and efforts in transforming IFS into a respected entity that strives to create value to support SMEs in Thailand.


Tan Hai Leng, Eugene
Chairman