KTC expects improvement in credit card business this month
Krungthai Card Pcl (KTC) expects its credit card business to improve in the remainder of this year, benefiting from the company's campaigns to attract people with high purchasing power and the government's "Shop Dee Mee Kuen" (Shop and Payback) scheme.
KTC executive vice president - credit card, Pittaya Vorapanyasakul, said that transactions via credit cards in the first 10 months amounted to Bt213 billion, while the volume of credit card subscriptions was 210,000 cards.
She expected transactions via credit cards this year to drop by 8-10 per cent year on year from a 15 per cent rise, while the volume of credit card subscriptions is expected to be at 250,000 cards, down from 270,000.
"In the past 10 months, the company's revenue from the credit card business dropped due to the Covid-19 impact on people's income, but we believe that it would improve in the remainder of this year from our campaigns to attract people with high purchasing power and the government's 'Shop Dee Mee Kuen' [Shop and Payback] scheme," she said. She added that the improvement, however, would not compensate for the loss in the previous months.
She said the company's non-performing loans (NPLs) were currently at 2.7 per cent, up from 1 per cent due to a change in financial reporting standards.
She said the company would closely monitor non-performing loans and the approval of new credit cards for customers, especially those who were affected by the Covid-19 crisis.
"The company's business plan next year is currently under consideration," she added.
