JpMorgan Chase released earnings last week. Of particular interest to us were their comments regarding credit card charge-off rates.
According to CFO Doug Braunstein, net charge-offs “may continue to improve modestly over the next quarter…after that we currently would not expect much improvement.”
This was music to our ears.
Charge-off rates had been declining for the last several quarters for the simple fact that banks have not been lending. Now that banks have decided to get back to business we’re confident that charge-off rates should begin to rise again in the coming quarters…and that means a steady supply inventory for the foreseeable future.
Do Good and Make Money!