FRINK Linked Data Fragments server

Matches in SemOpenAlex for { <https://semopenalex.org/work/W2994066398> ?p ?o ?g. }

• W2994066398 startingPage "43" @default.
• W2994066398 abstract "Card profits are holding steady, but will drop if you don't trim expenses It may be battered by competition and rising cost of funds, but the credit card business remains about the most profitable in the financial industry. Last year, the average credit card portfolio generated a 4% return on assets--a 60 basis point improvement since 1992, estimates consultant Robert K, Hammer. A look at the most profitable bank credit card subsidiaries in 1994 shows ROAs as high as 11%, 7.7%, and 6%. Hammer, whose firm, R.K. Hammer, is based in Newbury Park, Calif., gives credit for the recent improvement in profitability not just to the economy (which is keeping consumer bankruptcies down and card usage up), but to credit card issuers themselves. Even though interest income has softened and cost of funds is edging back improvements in chargeoffs and operating expenses are greater, he says. That offsets the loss of interest income, and people are still making more money today. (Hammer looks at national trends and statistics, which reflect mostly large issuers--the top 25 hold about 70% of credit card receivables. Individual programs vary widely in costs and profits.) Slight decline in total yield The total income on the average card program has declined for the last ten years to 18.5% in 1994, Hammer estimates. He predicts that this mildly downward trend will continue to 2000, when the yield will be 18.2%. The number one component of income is still interest from revolving balances. Hammer says about 62% of cardholders revolve their balances and that 80% of the typical card portfolio's income comes from that interest, the other 20% from annual fees, late fees and over-limit fees, and merchant fees. The annual fee, though rare in new offers, is still the most lucrative fee. He sees little opportunity to increase card fee income. With so many fee-free programs out there, difficult to charge everybody a fee when in fact most people can sign up free for at least their first year. So on the income side, the question is: Where are annual percentage rates going? The average APR cardholders pay on the $300 billion in total outstanding balances is about 17%, estimates Hammer. He believes the average APR will stay where it is for a while. Rivalry between issuers won't allow anyone to increase interest rates, he says. We're still going to have keen competition, which will result in attractive rates for consumers as concern for cardholder attrition goes up, he says. Yet APRs won't be driven down by competition. I don't think issuers are going to be stupid about how they compete, he says. You can't give away your product and make it up in volume. My forecast for 1995 is that income will go down 10 basis points, to 18.4%. That's fairly flat. Cynthia Graham, president of Barnett Card Services Corp., Jacksonville, Fla., points out that APRs of variable-rate portfolios will drift up with the prime. Robert McKinley, president of RAM Research Corp., Frederick, Md., says three out of every four cards in the U.S. has a variable rate, whereas three years ago a third of all cards were variable rate, Interest rates on cards could exceed the rates the public was comfortable with in the '80s, he says. In fact, now a lot of the more popular programs are drifting up into that 19%-20% range. When you get into that territory, it tends to get lawmakers and state legislatures fired up and causes consumer backlash. Many issuers are likely to voluntarily cap their rates at 19.8%. The net effect is it's still a lucrative business, that's why you still have people jumping in, he says. But at the same time, lean and mean is the name of the game today, and if you want to maintain profitability or increase it, going to be not through pricing, but through streamlining management and more effectively managing past-due accounts. One profit-friendly trend is that outstandings continue to grow, according to McKinley. …" @default.
• W2994066398 created "2019-12-13" @default.
• W2994066398 creator A5062623504 @default.
• W2994066398 date "1995-03-01" @default.
• W2994066398 modified "2023-09-25" @default.
• W2994066398 title "Lean and Mean Is the Name of the Game; Card Profits Are Holding Steady, but Will Drop If You Don't Trim Expenses" @default.
• W2994066398 hasPublicationYear "1995" @default.
• W2994066398 type Work @default.
• W2994066398 sameAs 2994066398 @default.
• W2994066398 citedByCount "0" @default.
• W2994066398 crossrefType "journal-article" @default.
• W2994066398 hasAuthorship W2994066398A5062623504 @default.
• W2994066398 hasConcept C10138342 @default.
• W2994066398 hasConcept C144133560 @default.
• W2994066398 hasConcept C144929662 @default.
• W2994066398 hasConcept C145097563 @default.
• W2994066398 hasConcept C162324750 @default.
• W2994066398 hasConcept C174957148 @default.
• W2994066398 hasConcept C175025494 @default.
• W2994066398 hasConcept C2983355114 @default.
• W2994066398 hasConcept C98937230 @default.
• W2994066398 hasConceptScore W2994066398C10138342 @default.
• W2994066398 hasConceptScore W2994066398C144133560 @default.
• W2994066398 hasConceptScore W2994066398C144929662 @default.
• W2994066398 hasConceptScore W2994066398C145097563 @default.
• W2994066398 hasConceptScore W2994066398C162324750 @default.
• W2994066398 hasConceptScore W2994066398C174957148 @default.
• W2994066398 hasConceptScore W2994066398C175025494 @default.
• W2994066398 hasConceptScore W2994066398C2983355114 @default.
• W2994066398 hasConceptScore W2994066398C98937230 @default.
• W2994066398 hasIssue "3" @default.
• W2994066398 hasLocation W29940663981 @default.
• W2994066398 hasOpenAccess W2994066398 @default.
• W2994066398 hasPrimaryLocation W29940663981 @default.
• W2994066398 hasRelatedWork W128975664 @default.
• W2994066398 hasRelatedWork W137044393 @default.
• W2994066398 hasRelatedWork W153164595 @default.
• W2994066398 hasRelatedWork W19929611 @default.
• W2994066398 hasRelatedWork W205804604 @default.
• W2994066398 hasRelatedWork W231881211 @default.
• W2994066398 hasRelatedWork W234949166 @default.
• W2994066398 hasRelatedWork W239521568 @default.
• W2994066398 hasRelatedWork W256372040 @default.
• W2994066398 hasRelatedWork W267005650 @default.
• W2994066398 hasRelatedWork W279832619 @default.
• W2994066398 hasRelatedWork W284912202 @default.
• W2994066398 hasRelatedWork W2978873593 @default.
• W2994066398 hasRelatedWork W309640248 @default.
• W2994066398 hasRelatedWork W32283154 @default.
• W2994066398 hasRelatedWork W336287598 @default.
• W2994066398 hasRelatedWork W55099365 @default.
• W2994066398 hasRelatedWork W784222073 @default.
• W2994066398 hasRelatedWork W81045689 @default.
• W2994066398 hasRelatedWork W2883396636 @default.
• W2994066398 hasVolume "87" @default.
• W2994066398 isParatext "false" @default.
• W2994066398 isRetracted "false" @default.
• W2994066398 magId "2994066398" @default.
• W2994066398 workType "article" @default.