(Yicai) Sept. 10 -- Most publicly traded Chinese banks reported that their credit card business experienced a significant decline in the first half of the year.

The struggles involved Chinese listed lenders' credit card transactions, loan balance, while non-performing loan balance and ratio, according to their recently published semiannual earnings reports.

China Citic Bank's credit card transaction volume fell 8.4 percent to CNY1.24 trillion (USD174.2 billion) in the six months ended June 30 from a year earlier, while that of Industrial Bank plunged over 18 percent to CNY985 billion (USD138.4 billion).

Industrial Bank's credit card loan balance dropped 11 percent to CNY368.6 billion in the period. That of Ping An Bank and Shanghai Pudong Development Bank sank 15 percent and 12 percent to CNY471 billion and CNY360.3 billion, respectively.

China Construction Bank's credit card non-performing loan balance rose by CNY2.9 billion (USD407.4 million) to CNY18.6 billion (USD2.6 billion) in the first half from the same period last year, while that of Industrial and Commercial Bank of China surged by CNY6.8 billion to CNY21.6 billion.

China Minsheng Bank and ICBC had credit card non-performing loan ratios of 3.24 percent and 3.03 percent in the first half, up 34 basis points and 76 bps, respectively, from a year earlier.

The main reasons for the decline in banks' credit card businesses are the continuous drop in retail sales of consumer goods and their earlier credit card issuance expansion, said Dong Zheng, a senior credit card expert.

However, some banks now have started reducing the number of their credit cards in circulation, Dong pointed out. For example, Bank of Communications cut its number of credit cards issued to 64.9 million as of June 30 from 74.6 million a year earlier.

These figures show the differentiated development of the credit card market, with some lenders reducing the number of their credit cards in circulation as part of their risk control and adjustment strategies, Dong noted.

Enhancing user experience and strengthening customer loyalty will be crucial for future competitiveness in the credit card business, said Zhou Maohua, a macroeconomic researcher at China Everbright Bank's financial department.

Editor: Futura Costaglione