Egg squeezed by Mint credit card push

Internet bank and credit card provider Egg is feeling the pinch as competitors eat into its market share.

Egg shares hit a 16-month low this week after Cazenove downgraded its stock.

The credit card market has become increasingly competitive with a number of new and existing operators offering interest free deals.

"Competition in the credit card market has remained fierce with a wide range of alternative providers, including Mint and HBOS, offering low prices and interest-free balance transfer periods," Cazenove said in a statement.

"We believe that aggressive marketing will have enabled certain competitors to continue to win higher value back-book customers from Egg."

Egg's majority shareholder, the insurance giant Prudential, tried to sell the business earlier this year.