Banks May Be Leaning on Credit Card Units in Q2

Printing Articles

Click here to print!
...or print directly from your browser by choosing File > Print... from the menu or by pressing [Ctrl + P]. Our printer-friendly stylesheet will make sure extraneous website stuff isn't printed.
You're done!

Patrick Lunsford July 9, 2012 (Be the first to respond) http://www.insidearm.com/daily/credit-card-accounts-receivable/credit-card-receivables/banks-may-be-leaning-on-credit-card-units-in-q2/

In a preview of second quarter earnings releases, Reuters speculates today that major U.S. banks may be counting on unexpectedly bright results from their credit card units to drive profits.

Reuters notes that the credit card lending arms of banks performed well over the second quarter as other business lines faltered:

While credit cards are performing well, and mortgage lending has increased with homeowners refinancing at lower rates, other lines of business were grim for many big banks in the second quarter. Trading volumes were low and merger and underwriting volume were also weak, weighing on investment banking results. Loan demand remained lukewarm, and rock-bottom interest rates pressuring lending margins.

But credit card delinquencies and losses have fallen faster than expected, with May seeing fresh lows for each.

Continuing the Discussion

We welcome and encourage readers to comment and engage in substantive exchanges over topics on insideARM.com. Users must always follow our Terms of Use. Also know that your comment will be deleted if you: use profanity, engage in any kind of hate speech, post an incoherent or irrelevant thought, make a point of targeting anyone, or do anything else we find unsavory. Your comment will be posted under your current Display Name, shown below. If you'd like to change your Display Name, you must update it on the My Profile page.