Krungthai Card to miss loan growth target for 2024

It should be able to maintain its NPL ratio below 2% for the whole year.

Krungthai Card may miss its target loan growth in 2024 due to a cautious lending policy, reports UOB Kay Hian (UOBKH).

In an analyst meeting, Krungthai Card’s management said that it would miss its loan growth target of 6-7% in 2024. 

Credit card spending is expected to grow by around 10% compared with its target of 15%.

This comes as KTC prioritizes good asset quality; its non-performing loans (NPL) ratio target of below 2% in 2024 should be achievable, according to UOBKH analyst Thanawat Thangchadakorn, UOBKH analyst.

KTC said that most of its clients will be able to pay the minimum payment amount of 8% set by the Bank of Thailand (BOT). The central bank recently announced that it will maintain this minimum until end-2025.

“Therefore, maintaining payment at 8% will be positive,” Thangchadakorn said.

KTC management is also still waiting for more details on a 0.5% cashback scheme announced by the central bank.

BOT had said that debtors who repay at least 8% of their credit card debt will get a 0.5% cashback of the outstanding for H1 2025; and 0.25% of the outstanding for H2 2025. 

The cashback is proposed to be paid every three months to encourage debtors to repay in full, Thangchakadorn said.