Bank profits up as card customers improve payments

NEW YORK: The top US credit card companies are seeing a boost to their bottom lines as consumers are getting better about paying their bills.Five top card issuers on Friday said the rates at which their customers defaulted on accounts fell in June. Bank of America Corp. reported the biggest drop, with JPMorgan Chase & Co. and Discover Financial Services also showing significant improvement.Late payments are also down. Only Capital One Financial Corp. saw an uptick in payments late by 30 days or more, and that increase was tiny.The impact of the improved payment habits was reflected in banks’ second-quarter financial results. Citigroup Inc., JPMorgan, Capital One and Discover have all added to their bottom lines by reducing the amount they set aside to cover defaulted cards. – Khaleejnews