UPDATE 1-Shares in credit card firm Krungthai slump 15 pct

* Posts first net loss in 2009 due to higher provisions

* Aims for 200,000 net new card members in 2010

* 2010 bad debt seen down to 3 pct from 3.9 pct in 2009

* Shares at seven-month low after 2009 earnings (Adds quotes, details)

By Manunphattr Dhanananphorn

BANGKOK, March 3 (Reuters) - Thailand's top credit card issuer, Krungthai Card KTC.BK, said on Wednesday it expected to return to profit in 2010 due to lower loan loss provisions, after its first annual loss caused its shares to slump 15 percent.

President Niwatt Chittalarn told a news conference the company, which has no accumulated losses, should resume paying a dividend for 2010 and that it had no plans to raise capital as it had sufficient funds to run the business.

At 0520 GMT, Krungthai shares were down 15 percent at 10.50 baht, after hitting a seven-month low of 10.40 baht, while the overall market was 0.14 percent higher.

"We should make a profit this year because our loan loss provisions should not be as high as last year," Niwatt said, adding the company would not pay a dividend on 2009 earnings because of the loss.

The firm, 49 percent owned by state-owned Krung Thai Bank KTB.BK, reported a net loss of 395 million baht ($12.1 million) for 2009 versus a profit of 617 million baht in 2008, hurt by higher-than-expected loan loss provisions of 1.26 billion baht.

Krungthai's main rivals include the third-largest bank, Siam Commercial Bank SCB.BK, Kasikornbank KBAN.BK, the fourth-biggest lender, the Thai unit of Citibank (C.N) and Standard Chartered Bank (Thai) (STAN.L).

The company has a 12 percent market share, with 1.6 million cards, and expects to add about 200,000 net new credit cards this year, Niwatt said, adding that it could reach 250,000 depending on the recovery in the economy.

It expected a net interest margin of 13.5-13.6 percent this year, down slightly from 13.7 percent in 2009 as rising interest rates pushed up financial costs, he said.

Krungthai Card expected non-performing loans to drop to 3 percent of total lending at the end of 2010 from 3.9 percent at the end of 2009, and its debt to equity ratio would be maintained at 7 times, Niwatt said.

The company planned to sell 10 billion baht in bonds in both 2010 and 2011, mainly to refinance debt. It is due to repay about 10 billion baht in debt this year. ($1=32.65 Baht) (Writing by Khettiya Jittapong; Editing by Alan Raybould)