Credit card receivables up 4% to P131 billion in 1st quarter

MANILA, Philippines – More and more consumers are turning to their credit cards instead of using cash to pay for goods or services acquired as banks’ credit card receivables went up four percent as of the end of the first quarter this year, the Bangko Sentral ng Pilipinas (BSP) reported over the weekend.

Data showed that credit card receivables of universal, commercial and thrift banks amounted to P130.6 billion as of end-March this year, or P4.9 billion more than the P125.7 billion registered in the same period last year, as consumers turned to their credit cards to finance the purchase of goods and services.

The amount, however, was lower than the P136.6 billion receivables registered in the fourth quarter of 2009 when purchases peaked during the Christmas season.

The BSP said universal and commercial banks accounted for 83.9 percent of the total credit card receivables with P109.6 billion while credit card subsidiaries of universal and commercial banks cornered a 15.7-percent share with P20.5 billion.

On the other hand, thrift banks also booked P500 million in credit card receivables to a marginal share of 0.5 percent.

The banking industryís total loan portfolio expanded P2.371 trillion as of end March.

The ratio of non-performing credit card receivables to total credit card receivables of the industry improved to 14.3 percent as of end-March from 12.2 percent ratio in the same period last year due to the 8.5-percent hike in non-performing receivables to P18.7 billion.

Credit card receivables of universal, commercial and thrift banks went up 4.5 percent to P136.6 billion last year from P130.7 billion in 2008, as consumers turned to their credit cards due to uncertainties brought about by the global economic meltdown.

Data showed that universal and commercial banks, as well as their subsidiaries, were aggressive in convincing credit cardholders to purchase more through promotional gimmicks as their receivables grew 8.3 percent to P136.1 billion from P125.6 billion.

The BSP said universal and commercial banks accounted for 84.2 percent of the total credit card receivables last year with P115 billion, while credit card subsidiaries of universal and commercial banks cornered a 15.4 percent share with P21.1 billion. –Lawrence Agcaoili (The Philippine Star)