KUALA LUMPUR: EON Bank Bhd’s credit card spending growth has risen to 3.5% in the first quarter this year, dispelling the notion that consumers are cutting back on their credit card use amidst bleak economic conditions.

EON Bank’s head of consumer banking Michael Lor said its credit card spending growth was ahead of industry average, which grew 1% in the first quarter this year.

“EON Bank had performed very well compared with the first quarter last year and believe that all the co-branding initiatives taken saw a significant take-up of our credit cards,” Lor told reporters after the launch of its co-branded credit card with Golden Screen Cinemas (GSC), the GSC-EON Bank Visa credit card on May 20.

OSK Research in a recent note said the recent relaxation in the interest rate and late payment charges could encourage consumers to increase their consumption credit patterns via the use of credit cards.

Co-branded credit cards had become more popular over the years, Lor said, adding that co-branded cards offer more value to customers compared with the generic credit cards.

“It also helps in increasing customer loyalty as co-branded cards offer exclusive privileges as well as benefits for cinemagoers, while also giving access to card holders, a wide range of facilities and services offered by EON Bank and Visa’s domestic and global merchants,” he said.