The Covid-19 pandemic increased the delinquency of credit cards issued by the main department stores that operate in the country, also known as non-bank ones.
The reduction in income and the greater caution of clients caused that in some cases this type of financing increased by up to four percentage points the delay in payments by their clients.
Records down
According to the reports sent to the Mexican Stock Exchange corresponding to the fourth quarter of 2020, the main firms that operate the segment, Liverpool, El Palacio de Hierro and Sears, show increases in the delinquency of their credit cards and the expectation is that by 2021 there is no improvement given the economic conditions.
“The past due portfolio with respect to the total portfolio has been increased by 3.9 basis points compared to the same period of the previous year, reaching 7.9%”, explained El Palacio de Hierro.
According to the company, in the credit division, the total client portfolio and active accounts showed a decrease of 18.4% and 5.3%, respectively, compared to the same period of 2019.
For its part, Liverpool reported that the delinquency of credit card customers ended the year better than expected, with an increase of 6.7%, although 220 basis points more than in the same quarter of 2019.
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