Some Credit Card Issuers See Better Than Expected Numbers
| July 17, 2009 |
With second quarter numbers being released, it seems that many credit card issuers are reporting better than expected numbers on revenue and decreased numbers when it pertains to delinquencies. In the past week companies such as Discover have reported profit and this week both American Express and Capital One have reported good news that could lead them to higher revenue.
American Express showed within a recent report that their annualized charge-offs, which are any debts that American Express has deemed unlikely to be collected successfully, have shown a decrease for the month of June. For Capital One the news was not as great, as charge-offs increased. Due to the fact that the amount of charge-offs did not reach the levels that many analysts and experts thought that it would, this was deemed good enough to send share up in trading.
With every good there is a bad however, as some economist and analysts argue that reports and data show that this is a one time occurrence, as loss of jobs are still increasing. One thing is for sure, for issuers such as American Express and Capital One the hope is that the third and forth quarters will follow the lead of the second and turn out better than previously forecasted.
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