U.S. Credit Cards Metrics Look Good, but Will Profits Tailspin in 2017?
- Date:September 20, 2016
- Author(s):
- Brian Riley
- Research Topic(s):
- Credit
- PAID CONTENT
Overview
Despite the current rosy picture, there may be trouble ahead.
Most recent numbers published by the Federal Reserve
indicate that U.S. credit cards are growing healthily, with increasing
portfolio value, record low delinquency rates, and stable interest rates,
except for the return on assets (ROA) metric. As we look toward 2017, we expect
steady performance with a focus on more regulatory scrutiny, interest rate
increases, and tighter competition, which will task the sacrosanct ROA. Unforeseen economic shock could entirely
disrupt the model.
Interested In This Report
Related content
Cobranded Credit Cards 2023
The cobranded card market is a way to generate loyalty, scale your portfolio, and service the next generation of cardholders.
The Credit Card Data Book Part Two: Internal Dynamics
The Credit Card Data Book is a two-part annual publication that covers the internal and external factors affecting the U.S. credit card market. The first part focuses on environmen...
The Credit Card Data Book Part One: Environmental Factors
The U.S. credit market continued its path toward stabilization in 2022 but faced several hurdles, including rising interest rates, strained household budgets, and a highly competit...
Make informed decisions in a digital financial world