Credit-Card Companies Are Expected to Announce Solid
Wall Street Journal (10/09/00) Vol. 104, No. 40 p.B25; Siegel, Tara

Credit-card companies are projected to announce impressive earnings results for the third quarter. Analyst Mark Alpert of Deutsche Banc Alex. Brown says the results are largely due to a combination of steady consumer use and good credit quality. Rising interest rates did not appear to affect results as previously predicted because card issuers have begun to pass along rate increases to their customers without any problems, according to Robert Hottensen of Goldman, Sachs. Among those in line to report solid returns is American Express. Alpert says that Amex is expected to post continued strong account growth, due in large part to its Blue and Costco cards. He estimates that about 1.2 million accounts were added in the third quarter versus 1.5 million in the second quarter. Also slated to post healthy returns is Capital One, which is on target to see receivables and account growth pick up. The company added 2.5 million net new accounts, an improvement from 1.6 million and 1.8 million in the first two quarters of the year.


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