• Lower return on assets means a softening in revenue, profitability and shareholder return.

    The Federal Reserve Board’s annual Report to Congress on Credit Card Profitability of Depository Institutions, June 2017, indicates the lowest return on assets rate in seven years. In this ForeSight report, Mercator Advisory Group recommends nine critical credit policy actions that issuers should consider in their business strategies.
  • Portfolio growth will taper in 2019 as credit card issuers brace for higher delinquency and rising interest rates. Volume growth will slow. With slipping return on assets, managers of U.S.-based credit card portfolios must be watchful for economic shifts to ensure that the 470 million cardholders in the United States have the ability to repay their credit responsibilities if the economic environment changes.


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