Mr. Chutidej Chayuti Chief Financial Officer Krung Thai Card Public Company slotxo Limited (KTC) expects that the NPLs to total loans at the end of 2020 will drop to 4-5% from 6.6% in the second quarter / 63, which was at the peak of NPLs and gradually improved in 3Q20.
As the company uses the new accounting standard TFRS9, which has changed the write off period to 24 months, the write off is much slower than before, the first half of the year is only 300 million baht. As a result, the NPL rose to a high in slotxo 2Q20, while the original standard was cut at 600 million baht. Adjusting the write-off period. Customers who have defaulted on their debt for 6 consecutive months will cause the NPL to drop by about 4%. Today's portfolio is better than the 2/63 quarter which is the lockdown period. This makes the allowance for NPL (NPL Coverage Ratio) to be close to 180% from 158% in 2Q20.
Personal loan growth is expected to grow 10% as targeted. Although slotxo in Q2 / 20, it did not do much, but due to the reduction in interest rates from 28% to 25%. Credit card spending in the last six months dropped 8%, but better than the industry overview. That's down 15% and is currently better. But the goal that had been set to grow 4-5% would be very difficult. From the amount of spending in the travel group disappeared But still get a beauty group to compensate With travel expenses accounted for 9%
Mr. Rathian Srimongkol, Chief Executive Officer of KTC believes that the business has passed the lowest point. And the outlook for credit growth improves from April 2020 It has a very high rate of defaulting. During the COVID-19 situation slotxo There are customers who come to adjust the interest on the credit. And installments for 48 months, more than 7 thousand cases when August has defaulted more than 2% and now has a lower default than the same month of the previous year. These are indicators that the remaining receivables in the portfolio are good quality debt customers.
