HSBC has highlighted a slowdown in credit card spending growth for October 2024, which rose by ~13% year-on-year (YoY) compared to stronger performance in September. This moderation is attributed to subdued net credit card issuance, which declined by ~54% YoY as lenders adopted a cautious approach following stress build-up in the segment earlier this year.
The report notes that the top three issuers contributed ~78% of net card issuance during the month, underscoring the concentrated nature of the industry. Despite the overall decline, SBI Card showed a notable improvement in its net issuance compared to recent trends.
HSBC remains watchful of the sector’s recovery, highlighting that while spending remains resilient, credit card issuers may face challenges in sustaining growth amid evolving regulatory and competitive pressures.
