Credit card spending continues to expand despite sluggish economy

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BANGKOK, 17 June 2015 -Credit card spending continues to expand despite the slugging economic recovery, according to Krungthai Card Public Company Limited (KTC).

According to Natchanan Kengluecha, KTC’s executive vice president for distribution business, since the beginning of the year, monthly spending through KTC cards has increased from an average of close to 6,000 baht per month per customer to some 8,000 baht per month per customer. The 11% expansion was higher than the 8% average increase within the credit cards industry. This was despite the fact that less leniency is now involved in the approval process for new credit cards, due to the high level of household debt and heightened overall debt shouldered by customers.

Ms. Natchanan indicated that non-performing loans at KTC stood at 2.4%, 1.6% of which could be attributed to credit cards and the rest was attributable to personal loans. The figures were lower than industry average.

For the latter half of 2015, KTC will emphasize the expansion of its customer bases in major cities up-country as well as in areas of economic significance along the border. The target is to acquire another 400,000 customers.