Bangkok Bank (BBL) will lower its guard against risk, banking on improved economic prospects next year.
The country's largest lender by assets plans to add more young customers to its credit-card base to diversify its card portfolio.
Bangkok Bank executive vice-president Choke Na Ranong (left) and Adrian New (second right), Chelsea Football Club's managing director for Asia-Pacific, attend an event marking a partnership between BBL and the club. BBL executive vice-presidents Thaweelap Rittapirom (second left) and Pochanee Kongkalai were also on hand.
The bank hopes to add another 500,000 cardholders next year including 100,000 first jobbers, credit-card manager Choke Na Ranong said yesterday.
If the target is reached, young generation cardholders will be increased to 10-15% of the bank's total credit-card base from below 10% at present.
BBL issued 400,000 more new credit cards this year, bringing its total cardholders to 1.7 million.
The swelling household debt and the economic cooldown worsened by the political tension in the first half of this year discouraged BBL from extending loans aggressively, particularly unsecured credit, for fear of a higher level of non-performing loans (NPLs).
Almost all commercial banks saw their new loans grow at a slower pace this year than in recent years when the growth was 1.5 to two times that of GDP.
To attract young customers, BBL plans to offer new products to serve their lifestyle, Mr Choke said, adding that becoming an official partner with Chelsea Football Club was among the plans.
Under the partnership, BBL will offer several privileges to customers who hold both debit and credit cards. It will also launch a co-branded credit card next year.
BBL has not specified the number of co-branded cards to be circulated in 2015 but expects the new card will receive a good response from young customers.
"We're refreshing our credit-card brand to tap young clients. Recently, the bank has paid little attention to this market segment due to their high-risk profile. Now we're ready to expand the business in this segment after strengthening risk management," Mr Choke said.
BBL expects 15% growth in its card spending next year, higher than the 10% target this year, in the wake of improving economic conditions.
A hike in state officials' salaries next year as per government policy is expected to encourage domestic consumption and boost consumer purchasing power.
The recent political impasse and stuttering economy have slightly pushed up BBL's NPL credit cards to between 1.7% and 1.75% of total loans from the usual 1.5%.
The bank expects bad loans for its credit-card business will be manageable due to the improving economic environment, Mr Choke said without elaborating on the target.
BBL shares closed yesterday on the Stock Exchange of Thailand at 196 baht, down 50 satang, in trade worth 251 million baht.