Banking News
- ICBC expected to issue 20 mln credit cards by year's end
Date: 30-May-2007 Sources: (Xinhua Online)
The number of credit cards issued by Industrial and Commercial Bank of China (ICBC) is expected to reach 20 million by the end of 2007, according to sources with the bank.
The ICBC had issued 10.47 million credit cards by the end of 2006 when the aggregate consumption volume totaled 105 billion yuan, according to ICBC's annual report.
The bank had issued 15 million credit cards to date, accounting for 27 percent of the country's total, said Li Weiping, head of ICBC's credit card center, without giving further details.
China has seen exponential growth in credit cards in the last two years. There were only 10 million cards in circulation at the end of 2004. But profits in this emerging business remain weak.
Industry reports reveal that the profits generated by bankcards accounted for less than three percent of the profits of domestic banks and the profits generated by credit cards are negligible.
Globally, credit cards on average contribute up to 30 percent of bank profits. Citibank, for instance, gleans 80 percent of its profits from retail business, about 60 percent of which is credit card business.
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