Citicorp gives every sign of running on all its cylinders these days, but that old standby -- credit cards -- is slowing down. The company's senior financial officer said competition in the credit card market is taking its toll on the bottom line.
During the first six months of the Thomas E. Jones year, the nation's biggest bank saw revenues from fees and commissions fall $98 million, or 4%, compared with the same period last year. The reason is "obvious," said executive vice president Thomas E. Jones said last week. "There are more no-fee credit cards around."
Citibank, the country's largest issuer of MasterCard and Visa cards, has begun promoting some no-fee cards and is once again increasing its advertising and marketing budgets.
As Mr. Jones told analysts last week, Citi can accept some revenue loss "to protect [its] market share and franchise."