Philippines Credit Card Receivables

Credit card receivables grew by 6.1 percent year-on-year in end-June 2011 and by two percent against the previous quarter after it totaled to P121.2 billion.

The Bangko Sentral ng Pilipinas (BSP) on Monday said CCRs grew by P2.4 billion against the previous quarter’s P118.8 billion and by P7 billion against year-ago’s P114.2 billion.

Bulk of the expansion was attributed to the 99.3 percent contribution of CCRs by universal/commercial banks (U/KBs) to the total CCRs. The balance was accounted for by U/KB’s affiliates.

Including CCRs of U/KB subsidiaries, the central bank reported that total CCRs reached P145.2 billion, P2.8 percent higher than the previous quarter’s P3.9 billion and P9.3 billion up than year-ago’s level.

CCRs of U/KBs reached P120.8 billion and accounts for 83.2 percent of the total while those of its subsidiaries reached P24.2 billion, 16.7 percent of the total, and those of thrift banks (TBs) that are not affiliated with U/KBs accounts for the remaining 0.1 percent or P0.2 billion.

Proportion of CCRs to total loan portfolio (TLP) declined to 4.5 percent against quarter-ago’s 4.8 percent and year-ago’s five percent ratio.

In terms of loan quality, proportion of total non-performing CCRs to total CCRs declined to 12.9 percent from the previous quarter’s 13.2 percent and year-ago’s 13.7 percent “as the growth in non-performing CCRs, particularly that of U/KBs and their subsidiaries, was outpaced by the increment in CCRs.”

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