SECOND TAKE: FT’S LEX
THE LEX COLUMN: US banks cash in on plastic power
More consumers are using credit cards — and revenue from the loans is providing a bright spot in a dull quarter
US shoppers are putting more of their purchases on plastic than ever. US credit card debt stood at $830bn at the end of June, according to Experian. Banks with big credit card divisions are reaping the benefit.
At Citigroup, revenue from credit card loans jumped 11% to $2.3bn in the third quarter, accounting for nearly 13% of total group revenue. That provided a bright spot in an otherwise so-so quarter.