Moody’s: “Big 6″ Card Issuers Set for Profit Growth
The six largest credit card issuers in the U.S. could see a significant gain in earnings this year, Moody’s Investor Services says. Find out which factors might play the biggest part in delivering profits to investors.
The “big six” credit card issuers in the U.S. — JPMorgan Chase & Co., Bank of America Corp., Citigroup Inc., Capital One Financial Corp., American Express Co. and Discover Financial Services — are set to enjoy substantial growth in profits over the remainder of 2012, a report from Moody’s Investor Service suggests.
The key driver: Moody’s expects the issuers to benefit from improvements to the quality of their respective assets. Specifically, Moody’s anticipates a 15 to 20 percent decline in charge-offs, a Marketwatch report says.
“Together with expected balance growth of about 5%, continued improvement in asset quality should lead to a significant increase in profitability this year, with pre-tax profits likely to go up by about 35%,” said Moody’s Curt Beaudouin.
The full report from Marketwatch is available online.