Now Chase lacking for credit card customers too
We all know how much Chase beat up even its good credit card customers in response to growing worries about the health of its credit card portfolio. But what we didn’t know was just how many people went for the exits. Looks like their treatment of customers has purged the ranks to the extent that, now that the health of their credit portfolio has improved somewhat, they have a serious problem with revenue growth, according to the Wall Street Journal.
But the question about whether their credit card portfolio has really improved is in question as evidenced by conflicting information in the Wall Street Journal story:
- They reduced their reserves for losses by $1.5 billion
- Their write offs went from 11.75% in the 2nd quarter to 10.2% in the 3rd quarter
But this is directly contradicted by the fact that the percentage of customers that were delinquent by at least 30 days went up from 4.96% t0 5.62%.
So it seems that Chase may be doubly screwed here, they still have a fairly sick portfolio and are not that attractive to existing good customers and new customers. Oh yea, and there is our mounting evidence that they are losing retail banking customers.
Customer service | admin July 15, 2010
