Credit card receivables reach P129.6 billion

MANILA, Philippines - Banks’ credit card receivables as of end-June rose by 3.1 percent, indicating that the global financial turmoil continues to affect the disposable income of consumers.

The Bangko Sentral ng Pilipinas (BSP) reported that the credit card receivables of universal, commercial and thrift banks rose to P129.6 billion in the second quarter of the year, from P125.7 billion recorded in the first three months of 2009.

The P129.6 billion level is higher by 5.7 percent from the year ago level of P122.6 billion, the BSP said.

The ratio of the total credit card receivables to the total loan portfolio climbed to five percent from the previous quarter’s 4.9 percent.

However, the BSP said this was lower than the 5.3 percent ratio recorded a year ago because of faster year-on-year growth in banks total loan portfolio.

By group, universal and commercial banks accounted for 81 percent or P104.9 billion of the P129.6-billion total credit card receivables.

Credit card subsidiaries of banks held 15.1 percent or P19.6 billion while thrift banks accounted for the remaining 3.9 percent or P5.1 billion.

On the quality of credit card receivables, the non-performing receivables stood at P16.5 billion, up by 7.1 percent from last quarter’s P15.4 billion and by 16.1 percent from year ago’s P14.2 billion.

The ratio of non-performing credit card receivables to total receivables settled at 12.7 percent, up from last quarter’s 12.2 percent and year ago’s 11.6 percent.

BSP said the quarter-on-quarter increase in the ratio came about as the 7.1-percent hike in non-performing credit card receivables outweighed the expansion in total receivables.

Meantime, the non-performing credit card receivables to total non-performing loans ratio stood at 12.1 percent (up from 11.2 percent last quarter and 10.6 percent a year ago).

The quality of credit card receivables of total banks that are not affiliated with universal and commercial banks stood better than that of banks together with their subsidiaries.