Bank-Card Issuers Up as Delinquencies Hit 22-Year Low (V) (MA)
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Price: $336.23 +1.73%
Overall Analyst Rating:
SELL (= Flat)
Dividend Yield: 0.9%
EPS Growth %: +8.1%
Overall Analyst Rating:
SELL (= Flat)
Dividend Yield: 0.9%
EPS Growth %: +8.1%
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Visa (NYSE: V), Capital One (NYSE: COF), Discover Financial (NYSE: DFS), and MasterCard (NYSE: MA) are up early Tuesday following a report from the American Bankers Association that bank-issued credt card delinquencies are at the lowest point since 1990 during Q113.
According to the ABA, delinquencies on the cards, which were 30 days or more overdue, fell to 2.41 percent for the first three-months of 2013. The record high for delinquencies was 501 percent in 2009, while the 15-year average is 3.37 percent.
Key components of the dip include increasing household wealth stemming from gains in home prices as well as stocks, not to mention an overall increase in consumer sentiment for the U.S. economy as a whole.
Home equity line of credit delinquencies rose from 1.85 percent the prior quarter to 1.91 percent. The pop is tied to homeowners passing the interest-only introductory rates on HELOCs and are now going through a period of "sticker shock."
According to the ABA, delinquencies on the cards, which were 30 days or more overdue, fell to 2.41 percent for the first three-months of 2013. The record high for delinquencies was 501 percent in 2009, while the 15-year average is 3.37 percent.
Key components of the dip include increasing household wealth stemming from gains in home prices as well as stocks, not to mention an overall increase in consumer sentiment for the U.S. economy as a whole.
Home equity line of credit delinquencies rose from 1.85 percent the prior quarter to 1.91 percent. The pop is tied to homeowners passing the interest-only introductory rates on HELOCs and are now going through a period of "sticker shock."
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