128 Expenses Finance costs of THANI and its subsidiary in 2021 amounted to 913 million baht while their selling and administrative expenses amounted 585 million baht. On the other hand, expected credit losses (ECL) amounted to 586 million baht while income tax amounted to 434 million baht. The finance costs in 2021 which amounted to 913 million baht represented a decrease of 150 million baht or 14.11 percent compared to the year 2020. This was mainly due to the efforts to ensure not only that the funds raised through borrowings were 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. As a result, the cost of fund was at 2.49 percent. Selling and administrative expenses in 2021 amounted to 585 million baht, representing an increase of 47 million baht or 8.74 percent compared to the year 2020. The key components of the selling and administrative expenses included personnel expenses, losses from impairment of repossessed cars and office expenditure. Expected credit losses (ECL) in 2021 amounted to 586 million baht, representing an increase when compared to that of 2020, which amounted to 338 million baht. In this connection, the ECL accounted for 1.24 percent of the average hire purchase debts. This was mainly due to the credit risk which rose in line with the economic slowdown caused by COVID-19 pandemic. The additional provision in 2021 reflected the ECL model which predicted future developments and management overlay. The objective was to accommodate the risk which might arise from the uncertainties caused by the virus transmission. This was in compliance with the Thai Financial Reporting Standards No. 9 (TFRS 9). Net Profit Net Profit For the Year 2021 2020 Net profit (Million Baht) 1,709 1,860 Net profit margin (Percent) 40.44 43.64 Yield on Loans (Percent) 7.15 7.04 Cost of Fund (Percent) 2.49 2.70 Interest Spread (Percent) 4.66 4.35 Net profit of THANI and its subsidiary in 2021 amounted to 1,709 million baht, representing a decrease of 151 million baht or 8.12 percent compared to the year 2020. In addition, net profit margin of THANI was 40.44 percent, down from 43.64 percent in the prior year, mainly due the contraction of the economy which was caused by COVID-19 pandemic. In this connection, THANI was prudent in extending loans. THANI’s yield on loans was 7.15 percent while cost of fund was down to 2.49 percent. As a result, its interest spread was 4.66 percent.
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