Despite the uptick in bankruptcies and chargeoffs, the second quarter earnings reports, due out this month, are expected to show solid performance by credit card issuers due to favorable funding costs. Early 2Q/01 portfolio data, collected by CardData, reveals positive performance even among smaller issuers. The major portfolios are projected to report double digit increases in profitability even though U.S. credit card portfolio losses hit a four-year high in April. However the higher 2Q profits may be short-lived as rising unemployment, high fuel costs, and a stagnant stock market, drive higher losses in the third and fourth quarters. Bankruptcy reform legislation may also produce an abnormal rise in filings, driving card losses even higherm for the second half of 2001.
EARLY 2Q/01 PORTFOLIO DATA
ISSUER 2Q/01 1Q/01 2Q/01 1Q/01
Anheuser-Busch Employees CU $33,997,000 $33,093,500 17,504 17,491
Citizens Financial Group $ 9,155,407 $ 8,522,516 6,993 6,823
Clinton National Bank $ 1,024,493 $ 1,044,306 1,419 1,385
Source: CardData (www.carddata.com)