Pittaya Vorapanyasakul, executive vice-president for the credit card business of KTC, said the figure is a concern.
KTC's outstanding cash advances were
Mrs Pittaya said the company is paying more attention to debt collection to control asset quality.
Cash advances are largely sought by the mass market segment earning between 15,000 to
"With strong debt collection practices, we expect to control loan quality, although rising cash advances are in line with the economic circumstances," she said.
The local card issuer also paid more attention to new card approvals, but kept its existing criteria unchanged. KTC offers credit lines for new cards five times lower than the central bank's regulations for monthly income during tough economic times.
Mrs Pittaya said its loan approval ratio is 50%, unchanged from last year.
KTC's delinquency rate increased a bit to 2.6% of total debt outstanding from 2.5% at the end of last year because of the slumping economy, while non-performing credit card loans (NPLs) were stable at 2.2%.
It booked card spending for the first five months of only
Lower spending reflects the political turmoil weakening domestic purchasing power and sentiment.
However, KTC maintained its aggressive growth target of spending via credit cards at 10-15% this year compared with sluggish growth of 4-5% the previous year, as it is optimistic on the improving trend of domestic consumption in the second half because of promises made by the
"A stable political situation and clearer economic picture helps build confidence. Hopefully, consumption in the second half will improve. Seasonal spending and the company's marketing campaigns should help to encourage card payments in the second half," she said.
KTC, a subsidiary of
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