Bad credit-card and personal loans rose at a double-digit speed in the first 3 months of 2015, strengthening indications that individuals debt repayment ability is deteriorating amidst the stuttering economy.
Non-performing loans (NPLs) for credit-card spending jumped almost 22 % over the exact same duration in 2013 to 8.93 billion baht since March 31, while that of individual loan rose at a faster rate of 27.4 % to 15.5 billion, according to information readily available on the Bank of Thailands website.
Bad credit-card loans by office banks rose to 6.75 billion baht at the end of March from 5.19 billion in the very same duration of 2014, while those of non-bank lenders increased at a modest speed to 2.19 billion from 2.13 billion.
Commercial banks more than three-month past due personal loans increased to 8.11 billion baht at the end of the first quarter from 6.76 billion baht in the matching period last year, while those of non-bank lenders increased to 7.36 billion baht from 5.38 billion baht.
Banks and non-bank business under the supervision of the main bank saw gross NPLs collectively increase to 298 billion baht at the end of March from 277 billion at the end of in 2013 and 280 billion over the same duration of the previous 12 months.
The NPL ratio likewise rose to 2.29 % of exceptional loans at the end of March from 2.15 % at the end of last December.
The main bank earlierprojected NPLs to increase progressively in the first quarter due to the modest speed of economic recovery, while full-year development of bad loans is not expected to enhance substantially, provided improving growth impetus. However, the main bank is not fretted by the increase in NPLs, as the ratio was still minimal and loan providers had high arrangements to cushion versus the risk.
Kiatnakin Bank recently alerted its bad loan ratio could reach 7 % in the 2nd quarter as the having a hard time economy and spiralling household financial obligation wear down possession quality.
Home debt more than doubled to 10.4 trillion baht at the end of 2014 from 5.05 trillion at the end of 2008.
In terms of ratio, it stood at 85.9 % of GDP at the end of 2014, up significantly from 55.6 % at the end of 2008.
As of March 31, a total of 20.6 million credit cards were circulating in the market with impressive loans of 252 billion baht, while there were 11.8 million personal loan accounts with overall loans of 313 billion baht, main bank information showed.
Credit-card spending increased to 142 billion baht at the end of the very first quarter from 131 billion at the end of 2014.
Card spending, categorized by classification, increased across the board.
Domestic spending was addedenhanced 117 billion baht at the end of March from 107 billion at the end of last year, international spending rose to 9.54 billion from 8.42 billion and, most importantly, card money withdrawals also enhanced to 16.2 billion from 15.3 billion.
Information show 10.8 million credit cards were released by non-bank business and the remaining 9.78 million by office banks at the end of the first 3 months.