On March 27th, listed banks recently released their 2024 annual performance reports. The disclosed annual report shows that some banks have experienced varying degrees of decline in indicators such as the number of credit card outstanding accounts, the number of outstanding cards, and the monthly activity of credit card apps. The decline in credit card business revenue directly affects the growth of non interest income for banks. Along with the decline in credit card size and non interest income, its non-performing loan ratio has increased. In the new stage of intensive cultivation of credit card business, in order to achieve cost reduction and efficiency improvement, multiple banks have adjusted the layout of credit card operating institutions. Since the beginning of this year, some credit card branches of banks such as Bank of Communications, Minsheng Bank, and Guangfa Bank have been approved to cease operations. In sharp contrast to the shrinking of credit card business, consumer loans are becoming the new favorite of banks’ retail loan business. Industry insiders believe that compared to credit card business, consumer loan business has lower operating costs and customer base maintenance costs. In the context of pressure on net interest margins, the lending and interest collection model of consumer loans contributes more directly to bank revenue. Banks are increasing their efforts in developing consumer loans, which not only responds to policy calls, but also further explores new growth points in retail business.
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