In an optimistic note to clients, Harting expressed his expectation that all three credit card issuers would survive a turbulent end to 2009 on their way to strong performance by 2012. Harting also noted that credit card delinquencies often trail unemployment trends. With unemployment slowing in most states, banking sector analysts have advised clients to expect a similar drop off in costly credit card delinquencies and charge-offs over the coming months.
Restored faith and stronger stock prices in the credit card industry has already resulted in stronger competition in the third quarter of 2009. With new credit card regulations changing the way that card issuers attract new customers, positive press and strong word of mouth have become important marketing tools. Harting's strong price targets may help lenders restore customer faith in their products and in the overall health of the credit business.
About the Author
Joe Taylor Jr. is an internal business consultant for a Fortune 500 company, who writes about finance, culture, and design. He holds a Bachelor of Science in Communications from Ithaca College.