Xin Lang Cai Jing·2025-04-22 00:31Core Insights - The credit card loan scale of major banks in China has generally contracted in 2024 compared to 2023, with seven out of fifteen banks reporting a decrease, while China Construction Bank (CCB) became the first bank to exceed 1 trillion yuan in credit card loans, growing over 6% year-on-year [1][5][6]. Credit Card Loan Performance - CCB reported a credit card loan balance of 1.07 trillion yuan, marking a year-on-year increase of over 6% [5]. - Other banks such as China Merchants Bank (CMB) and Agricultural Bank of China (ABC) also showed significant balances, with CMB at 947.84 billion yuan and ABC at 858.81 billion yuan, reflecting growth rates of 1.28% and 22.68% respectively [3][5]. - The overall trend indicates a shrinking credit card loan scale, with notable reductions at banks like Ping An Bank, which saw a decrease of 79.1 billion yuan [1][7]. Credit Card Quality and Risk - The credit card non-performing loan (NPL) ratios have generally worsened, with Industrial and Commercial Bank of China (ICBC) reporting the highest NPL ratio at 3.5%, an increase of 1.05 percentage points [7]. - Several banks, including CMB and Bank of China, have seen improvements in their NPL ratios, while others like CMB maintained a stable ratio of 1.75% [7]. Credit Card Issuance and Consumption Trends - The issuance of credit cards has declined, with major banks like ICBC, CCB, and Postal Savings Bank reporting reductions in the number of cards issued [9]. - Credit card transaction volumes have also decreased, with a reported total transaction amount of 39.8 trillion yuan in 2023, down 5.6% year-on-year [15]. Strategic Adjustments in Credit Card Operations - Banks are undergoing significant changes in their credit card operations, with some moving towards a decentralized model to better serve local customers [13]. - The trend of closing credit card centers is becoming common among banks as they seek to optimize costs and restructure their operations [13]. Market Dynamics and Challenges - The credit card market is facing intense competition from alternative lending sources, leading to a contraction in credit card business [11]. - The overall economic environment has prompted consumers to adopt more cautious spending habits, contributing to the decline in credit card transaction volumes [14][15].