|
Citibank expects to sustain the double-digit growth of its credit
card business in the Philippines this year driven by higher usage
despite higher inflation.
Citi expects to grow 10 percent to 15 percent in
credit card sales this year, Bea Tan, Citibank’s vice president
and Cards Business director of Global Consumer Group, said during
the launching of Citi PremierMiles card, a new product designed for
the frequent travelers.
Despite high inflation, she said credit card
usage is still strong and the company expects “pretty much similar
growth this year,” adding that “with high prices, people tend to
maximize credit.”
Lending rates went up as inflation or the
increase of prices increased significantly due to higher oil and
commodity prices. BSP adjusted its assumption for Dubai crude to a
range of $115 to $125 a barrel this year. Inflation is seen reaching
7 percent to 9 percent.
Inflation rate or consumer price index rose to
9.6 percent in May from 8.3 percent in April.
Tan said Citibank has decreased its credit card
rates to a range of 2.75 percent to 3.25 percent from 3.5 percent
last year, and will issue 200,000 more credit cards this year to add
to the current 1.2 million for affluent and mass affluent credit
card holders.
“I don’t see immediate increase in
interest rate. In the coming years, more products will be introduced
with lower interest rates,” she added.
She said credit card rates will depend on the
credit performance of individuals, which is lower for good payers
than for delinquent payers, and “[customized interest rates] are
something were looking at.”
Tan said the Philippines has the lowest
attrition rate in the region at single-digit level.
Citibank has the highest market share in credit
card at 30 percent.
-- Maricel E. Burgonio
|
