Three US credit card issuers – American Express, Capital One and Discover Financial Service – have reported higher levels of lending, which underlines stronger demand for revolving consumer credit in April this year.
Filings of these companies cited in The Financial Times recorded faster loan growth in the domestic card businesses in May.
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This trend also indicates that the US credit card business is overcoming the shadow of negative impact of financial crisis of 2008.
Capital One core loan growth stood 1%, while Amex US card loans rose by 6.1% year-on-year. Discover reported that its domestic card loan growth increased by 6.3% in May against 5.3% the month earlier.
The increase in card loans follows strong increase in revolving consumer credit across the broader US economy, according to the publication.
Donald Fandetti, an analyst at Citigroup, was quoted by The Financial Times as saying, "I’m pretty convinced we’ve hit this inflection point."
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By GlobalData"All of a sudden, consumers feel a little bit better, on top of that – from what we hear anecdotally – we think the banks are increasing credit lines for cardholders," Fandetti told the publication.
