TTB Consumer, an unsecured loan business under TMBThanachart Bank (ttb), has set an ambitious goal to reach the top four in Thailand in three years.
The bank plans to expand total outstanding loans for both credit cards and personal loans to 100 billion baht in 2025, up from the current 64 billion.
It ranks sixth or seventh in the unsecured loan market now, said president Thakorn Piyapan.
In 2022, the bank targets 1.4 million cardholders, of which 250,000 are newly subscribed cards. The goal for new cardholders represents 200% growth from the year before.
TTB Consumer aims to control non-performing loans (NPLs) in the credit card business at 1%, he said.
For the first half of this year, the bank's total credit card base stood at 1.2 million cards with total credit card loans outstanding worth 27 billion baht and total card spending of 48 billion. Card spending saw 29% growth year-on-year.
In addition, ttb expects to acquire 170,000 new clients for personal loan products this year, 270% growth from last year, said Mr Thakorn.
The bank wants to increase new personal loans by 26 billion baht this year, 86% growth year-on-year.
TTB Consumer targets expansion of total personal loans outstanding to 35 billion baht by the end of this year, and aims to contain the NPL ratio at 2.7%, he said.
In the first half of this year, the bank's total personal loan accounts stood at 73,000, with new loan growth of 9.5 billion baht or 44% growth year-on-year.
TTB Consumer's total personal loan portfolio was 29.5 billion baht for the period.
Mr Thakorn said the existing customer base and partnerships are the keys to grow the business aggressively from 2023 to 2025.
The bank plans to build three ecosystems, comprising payroll, home loans and auto loans, to facilitate unsecured loan expansion, he said.
Jaray Jianthanakanon, head of retail lending products, said ttb's total retail customer base is around 10 million and there is more room to grow unsecured loan products.
He said the bank's credit card and personal loan products will focus on the middle class earning between 15,000 and 50,000 baht per month, which represents around half of the bank's total individual clients.
"We have no plan to enter into the lower-income segment in order to control asset quality, but the bank has been offering some loans to the segment to test the market," Mr Jaray said.
