Krungsri Consumer, an unsecured loan unit under Bank of Ayudhya (BAY), delivered strong loan growth during the first quarter, driven by upper-income earners who are resilient amid the sluggish economy.
Krungsri credit card spending surged 11% and personal loans jumped 9% year-on-year in the first quarter, chairman Thakorn Piyapan said, noting that shopping and tourism, particularly outbound travel, contributed to the growth.
Credit card spending amounted to 130 billion baht as of April 15, compared with the full-year target of 320 billion, Mr Thakorn said.
Affluent customers earning above 30,000 baht a month represent Krungsri Consumer's largest portion of credit card holders.
The market segment has high purchasing power and is unscathed from the economic headwinds.
The non-performing loan (NPL) ratio for credit cards declined to 2.4% in mid-April from 2.8% a year earlier.
Apart from the strong purchasing power of credit card holders, the financial discipline of the customer segment helped improve loan quality. The average age of a Krungsri credit card holder is 48, meaning they are mature enough to spend prudently, Mr Thakorn said.
Regarding new personal loans, Krungsri Consumer extended 32 billion baht in total as of April 15, more than one-third of its full-year target of 90 billion baht.
The number of personal loan borrowers living in provincial areas rose significantly, suggesting that underground loan borrowers had better access to formal financial sources, Mr Thakorn said.
Krungsri Consumer's NPLs for personal loans fell to 1.05% in mid-April from 1.2% a year earlier.
As of April 15, BAY's unsecured loan unit had expanded new credit card accounts by 160,000 and personal loan accounts by 125,000. It aims for 3.8 million accounts and a lending portfolio of 145 billion baht in total by year-end.
