Banks' Credit Card Exposure Top R69 B

Article excerpt

The banking sectors credit card receivables which represent the total outstanding balance of credit cardholders, reached P69.25 billion last year, 17.4 percent more from the previous year of P59 billion.

Bangko Sentral ng Pilipinas data showed that CCRs increased 10.9 percent compared to the last quarters P62.45 billion. The ratio of total CCRs to banks total loan portfolio also advanced four percent from 3.5 percent in 2003 and 3.7 percent during the last quarter ending September of 2004.

The central bank said universal/commercial banks accounted for 68.8 percent or about P47.6 billion of total CCRs while their subsidiaries has 27.5 percent or P19.1 billion. In the meantime non-linked Thrift banks has 3.7 percent or P2.6 billion of the credit card total balance.

On the other hand the combined past due CCRs of both bank proper and its credit card units was higher by 1.5 percent to P14.5 billion from the previous quarter, and 3.5 percent compared to the full 2003 total. In the meantime the higher growth of 10.9 percent in CCRs from the last quarter improved the ratio of past due CCRs to total CCRs to 21 percent from 22. …