It's an interesting phenomenon that while the industry is concerned about the profitability of Chinese banks' credit card business, bankers shrugged off the concerns and are more focused on taking a bigger bite of the market although most of them are still not making money in the sector.

Wu Huitao, deputy general manager of the China Construction Bank's credit card center, is confident about the prospects of the Chinese mainland's credit card market although the bank hasn't broken even on the business yet.

"It is estimated that China will have 250 million credit cards in circulation in five years," said Wu. "The market potential is huge and in the long run, profitability will come."

China has more than 104.73 million credit cards in circulation at the end of March, up 92.9 percent from a year ago, according to the People's Bank of China, China's central bank.

Credit cards will be the most important consumer credit product after mortgages, with profit forecast to reach US$1.6 billion by 2013, accounting for 22 percent of total consumer credit profits, said New York-based McKinsey & Co.

Elusive card profit

However, there are less than a handful of banks in China making a profit in the business now. China Merchants Bank, one of the leading banks in the market with a one-third market share and with more than 21 million credit cards issued, claimed its card business is profitable.

Li Weiping, president of Industrial and Commercial Bank of China's card center, was more blunt saying that at the moment the issue of profitability is not a big factor.

"It is a complex issue - profitability depends on whether you include the cost of the headquarters, the branch counters , besides the cost for direct-sales and the card center," Li said.

"There is no universal criteria in the industry now, so I don't think it necessary to discuss more on profitability now," he pointed out.