KTC expects improvement in credit card business this month

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KTC expects improvement in credit card business this month

By The Nation

 

 

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.

 

Source: https://www.nationthailand.com/business/30399202

 

 

-- © Copyright The Nation Thailand 2020-12-08

 

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[RichardColeman]

Real test will be when the interest rate and repayment holidays end.

[ThailandRyan]

I read the title and thought to myself that customers must be using less cash if KFC was looking at increased credit card usage.  Then I read the article and realized that credit card use will be up not just because of what they say. But because if what they do not. That will be because of the holidays and again no one has money.  Looks like household and personal debt is rising more and soon to be a very big crash I fear when no one can repay the money.  

Edited December 8, 2020 by ThailandRyan

[itsari]

28 minutes ago, ThailandRyan said:

I read the title and thought to myself that customers must be using less cash if KFC was looking at increased credit card usage.  Then I read the article and realized that credit card use will be up not just because of what they say. But because if what they do not. That will be because of the holidays and again no one has money.  Looks like household and personal debt is rising more and soon to be a very big crash I fear when no one can repay the money.  

To say nobody has cash is of course not true . To say Thai banks are vulnerable to collapse if the tourist industry and the high Thai baht can not get back to some normality then i would agree .

[ThailandRyan]

27 minutes ago, itsari said:

To say nobody has cash is of course not true . To say Thai banks are vulnerable to collapse if the tourist industry and the high Thai baht can not get back to some normality then i would agree .

So you believe that the cash is flowing like wine and the Thai people have as much now as they did prior to covid.  I find that a little hard to accept.  Now are there Thai's with money, sure there are, saw it yesterday when I went for a Shopping trip at the Central Embassy mall here in Bangkok.  High end Lambo's, Porsche's, like the Cayenne I just sold, and then a Bentley and a Rolls Royce.  Prada, and the Gucci store were full of those High end shoppers, but what was absent in the regular Central World, and then Rama 9 malls were people buying.  Oh they were looking but they were not buying.  Went to Samphaeng on the Backside of Yaworat Rd in China Town, and the side Sois with all of the shops were busy with people buying the 40 baht bin goods, and all of the marked down items for Xmas.  I shop where I want and have observed a downturn as far as the amount people are spending, and then I have observed more plastic being used.