associate sponsors

Havells
HDFC

Credit card losses set to climb industrywide - JPMorgan's Smith | Reuters

By Dan Freed

U.S. credit card losses are likely to rise at JPMorgan Chase & Co (JPM.N) and across the industry, Gordon Smith, head of the bank's consumer businesses, said at a conference on Tuesday.Smith said the largest U.S. bank is being "surgical" in determining where to tighten credit standards but he added that lenders industrywide ought to be leaning towards stricter credit card lending standards rather than looser ones.

JPMorgan's earnings have shown rising sales volumes as well as weakening credit trends in its credit card business, consistent with other lenders. A recent investor presentation by the bank said Chase Card has only modest exposure to credit card borrowers with FICO scores lower than 660.A Fitch Ratings report last month said credit card loss rates, which have already been climbing, are likely to rise for several more quarters as loan growth has increased, driven partly by lower credit standards.

Smith said Tuesday rising losses should be no cause for alarm, but are to be expected after an extended period of historically low loss rates.

"I've called this now actually for almost two years so that nobody would be surprised," he said. However, he added, "people still seem to be surprised that we are at the end of that cycle." (Reporting by Dan Freed; editing by David Gregorio)

This story has not been edited by Firstpost staff and is generated by auto-feed.


Updated Date: Jun 14, 2017 06:15 AM

Also Watch

Social Media Star: Abhishek Bachchan, Varun Grover reveal how they handle selfies, trolls and broccoli
  • Monday, July 16, 2018 It's a Wrap: Soorma star Diljit Dosanjh and Hockey legend Sandeep Singh in conversation with Parul Sharma
  • Monday, July 16, 2018 Watch: Dalit man in Uttar Pradesh defies decades of prejudice by taking out baraat in Thakur-dominated Nizampur village
  • Monday, July 16, 2018 India's water crisis: After govt apathy, Odisha farmer carves out 3-km canal from hills to tackle scarcity in village
  • Sunday, July 15, 2018 Maurizio Sarri, named as new Chelsea manager, is owner Roman Abramovich's latest gamble in quest for 'perfect football'

Also See