Credit card spending in RP to rise by single digits this year, HSBC says

MANILA, Philippines - Purchases via credit card transactions will increase in the Philippines this year but only by single-digit levels, a Philippine-based executive of British lender HSBC said. However small, the hike in credit card transactions will be fueled by remittances from overseas Filipino workers as well as other consumption activities, HSBC Philippines personal financial services head Ron Logan said. “Spending via credit cards should still be up this year although not at the 20 or 30 percent growth rates of the past," Logan said. The upcoming national elections will also help boost spending, he added. Meanwhile, Logan said that default rates for HSBC-issued cards are projected to remain at current levels. Credit card holders who were unable to make payments averaged 11.7 percent across the industry, latest BSP data said. As of end-September last year, credit card receivables of commercial and universal banks hit P124.4 billion, 1.5 percent higher than the previous quarter’s P122.6 billion. Of the six million credit card users in the Philippines, 1.5 million are HSBC customers, making it the second-largest card issuer in the country, he said. - GMANews.TV