Fewer bad debts and personal bankruptcies and an increase in income from fees drove bank card profits to the highest level in five years in 2000. Pre-tax return on assets (ROA), an important measure of profitability, was 3.6 percent in 2000. These profits represent a 16 percent increase over 1999 (3.1 percent ROA) and 44 percent more than 1998 (2.5 percent ROA). Profits haven't been this high since 1995 (3.6 percent ROA). Issuers have continued to increase the number and amount of fees. Fee income contributed to 28 percent of profits in 2000, up from 24 percent in 1999. [Source: R.K. Hammer, Investment Bankers]
Categories:
Credit Card,Banking Fees
Reporting Pub:
Consumer Federation of America
Reporting Date:
2/27/2001
Article
Title:
CREDIT CARD ISSUERS AGGRESSIVELY EXPAND MARKETING AND LINES OF CREDIT ON EVE OF NEW BANKRUPTCY RESTRICTIONS
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