56-1 One Report / Annual Report 2021 Thanachart Capital Publ ic Company Limited 127 Ratchthani Leasing Public Company Limited Overall Performance As for the year 2021, net profit of THANI and its subsidiary amounted to 1,709 million baht, representing a decrease of 151 million baht or 8.12 percent, compared to the prior year. This was primarily due to the economic contraction as a result to COVID-19 pandemic. In this connection, THANI was careful in lending. Total income in 2021 amounted to 4,226 million baht, representing a decrease of 37 million baht or 0.87 percent from a year earlier. On the other hand, financial expenses of THANI and its subsidiary amounted to 913 million baht, representing a decrease of 150 million baht or 14.11 percent. The company ensured not only that the funds raised through borrowings were in line with the funds loaned out but also that the interest rate spreads were maintained at a level which enabled THANI to make a profit consistently. Income In 2021, THANI placed emphasis on provision of support to customers throughout the COVID-19 transmission. During the past period when the situation remained uncertain, Ratchthani Leasing continued to maintain its policy of cautious lending in view of the fact that purchasing power became weaker and household income of borrowers declined. As a result, total income of THANI and its subsidiary amounted to 4,226 million baht, representing a slight decrease of 37 million baht or 0.87 percent from the year 2020. On the other hand, hire purchase receivables and financial lease receivables increased by 1,163 million baht or 2.49 percent compared to the year 2020. The key components of the income of THANI and its subsidiary in 2021 included hire purchase interest income and financial leases interest income, which amounted to 3,430 million baht or accounted for 81.16 percent of the total income, fees and service income of 379 million baht, and other income of 417 million baht. They accounted for 8.97 percent and 9.87 percent respectively. Proportions of the interest income from both hire purchase and finance lease agreements in comparison with other income (hereinafter referred to as fees and service income as well as other income) of THANI and its subsidiary for the year 2021 and the year 2020 were as follows: 2021 2020 Financial Leases Interest Income, 1.07% Financial Leases Interest Income, 1.15% Hire Purchase Interest Income, 80.09% Hire Purchase Interest Income, 81.33% Other Income, 18.84% Other Income, 17.52%
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