Citibank outstrips competition

Citibank (Thailand) predicts strong growth in new customers for three unsecured loan products in the second half after a surge in first half growth despite the lacklustre performance of the segment among Thai banks.

“In the second half, we expect to see a positive outlook in the unsecured loan business on the back of improving economic sentiment. Our credit card business will keep growing at 30%, with ready credit and personal loans increasing 28-30% each,” said managing director Viraanong Phutrakul.

In the January-to-June period, the number of new customers using the bank’s credit card business jumped 34%, ready credit customers increased 28%, and customers for other personal loan products grew by 26%, she said.

Citigold — the bank’s wealth management service — also enjoyed an 81% rise in its customer numbers during the first half, she said.

Citibank’s average credit card spending during the six months to June was two times higher than the industry average, and outbound spending through its credit cards was almost triple, she said.

The bank’s bad loan ratio was also lower than the industry average.

That it boasted higher credit card spending despite registering fewer non-performing loans (NPLs) could be attributed to to the fact that its customers are high income earners who have felt less effects from the economic slowdown. The bank’s promotional campaigns have also lent support to its business.

Mrs Vira-anong said the number of Citibank’s new credit card customers who had applied through online channels during the first half jumped by 50% over the same period last year.

Growth of new customers for other lending products through digital channels also increased, including a 33% boost for ready credit — its revolving credit line — and 12% for personal loans.

More than one-third of customers in Thailand have made online transactions, she added.