In Search of a Profit: Falling ROA Sets the Stage for 2019 and Beyond

Issuers must be objective about their future in the credit card industry, particularly as top issuers’ returns plummet.

The latest reports to Congress by the Board of Governors of the Federal Reserve System indicate credit card return on assets (ROA) in the United States fell for the fourth consecutive year. With new accounting requirements on the horizon, and revenue headwinds, the metric will continue to plummet through the end of the decade.