Non-performing loans (NPLs) measured by the National Credit Bureau reached 1 trillion baht in the second quarter this year, the highest in 12 months, says a bureau executive.
Household NPLs tallied by the National Credit Bureau (NCB) rose to 1.03 trillion baht in the second quarter of 2023, up from 950 billion baht in the previous quarter, a rise of 7.7%.
During the pandemic, NPLs peaked at 1.11 trillion baht in the second quarter of 2022, then declined to less than 1 trillion baht for three consecutive quarters.
The loan segment exceeded 1 trillion baht again in the second quarter this year, NCB chief executive Surapol Opasatien posted on Facebook on Monday.
The higher NPLs mainly stem from auto loans, amounting to 200 billion baht in the second quarter this year, up by 18% from the previous quarter.
Personal loans account for 250 billion baht worth of NPLs, followed by housing loans at 180 billion baht, agricultural loans 72 billion and credit card borrowing 56 billion, according to the NCB.
Mr Surapol said special mention (SM) loans, in which borrowers fail to make payments within 30-90 days of the due date, declined to 475 billion baht in the second quarter from 600 billion the previous quarter.
The reduction is attributed to SM auto loans being classified as NPLs in the second quarter, said the bureau.
Troubled debt restructuring (TDR), defined as restructuring in which a creditor grants a concession to a debtor that it would not normally consider, increased to 980 billion baht in the second quarter of 2023, the highest amount in 12 months.
The TDR amount was steady at 780 billion baht from the second to fourth quarters last year, then increased to 800 billion in the first quarter this year.
New NPLs as a consequence of Covid, which are under a debt restructuring scheme dubbed NCB account status code 21, also increased.
Outstanding code 21 NPLs amounted to 370 billion baht in the second quarter, up by 60 billion from the previous quarter.
In terms of number of accounts, code 21 NPLs tallied 4.9 million accounts in the second quarter, up by 500,000 accounts from the first quarter.
In terms of borrower numbers for code 21 NPLs, there were 3.4 million in the second quarter, rising by 300,000 from the first quarter, according to the NCB.
The upsurge in code 21 NPLs reflects the weaker debt repayment ability of vulnerable borrowers under the existing debt restructuring programme, said the bureau.
The central bank's financial assistance measures are set to expire at the end of this year.
"Given the expiration of debt assistance measures, debt restructuring among the vulnerable segment could be rampant, possibly increasing NPLs for the remainder of the year," said Mr Surapol.
According to the Bank of Thailand's data, total household debt amounted to 16.0 trillion baht or 90.6% of the GDP.
Household debt measured by the NCB amounted to 13.5 trillion baht, contributed by 32 million borrowers from 135 financial institutions.