Featured Credit Cards for May

St George Vertigo MasterCard

• Rate : 10.99 %
• Balance Transfer :
  0% (for first 6 months)

 

Citibank Clear

• Rate : 11.99 %
• Balance Transfer :
  0% (for first 6 months)

 

Aussie MasterCard

• Rate : 11.99 %
• Balance Transfer :
  0% (for first 6 months)

 

NAB Low Rate Visa Card

• Rate : 12.79 %
• Balance Transfer :
  0% (for up to 6 months limited time only)

 

St George Starts Low, Stays Low Credit Card

• Rate : 12.99 %
• Balance Transfer :
  12.99%

 

St George rides out crunch with credit card boom

One of Australia's largest banks has put its recent good fortunes down to the success of its credit card division.

Amid St George's financial results, the Sydney-based bank has admitted that the nation's credit card market is helping it pull itself - and other banks - through the credit crunch crisis.

Marketing of credit cards to bank customers has paid off for the major financial institutions throughout the country, with one in four customers now having a credit card - up from one out of every five customers two years ago.

The amount the bank earned from credit cards increased by 16 per cent during 2007 to $1.6 billion, the Sheet reports.

Despite the current uncertainty in the financial markets, St George's mortgage book - including all home loans taken out for residential use - decreased by $15 million during 2007. The bank also revealed that 56 per cent of its mortgage lending remains in its New South Wales heartland, despite recent nationwide growth.

St George chief executive Paul Fegan said: "Retail deposit growth is now running at the same rate as our asset growth. That is, the retail bank is actually match funded.

"This is the first time this has occurred in over a decade at St George and we expect that to continue."

At the end of last month, St George altered its relationship with mortgage brokers over how they earn commission. A number of other banks have changed rules over commission amid tightening lending conditions.

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