Seeking Alpha

With growth opportunities limited, credit card stocks are expense control and capital-return...

With growth opportunities limited, credit card stocks are expense control and capital-return stories at this point, says Jefferies, and heading into Q2 earnings, Discover (DFS) and American Express (AXP) are best positioned to surprise. Discover is the leader in cutting rewards expense, with AMEX next, and Capital One (COF) not yet slashing.
Comments (4)
  • $DFS just sent me a teaser rate to consolidate my student loans. I thought this was interesting given the supposed $1T in US student loan debt. Potentially a huge market opportunity for credit card issues who are nimble.
    15 Jul 2013, 04:44 PM Reply Like
  • I'm a Discover Card holder since the beginning (1986) and I have not seen any cut in rewards. In fact they just added an extra 5% on gas purchases for the third quarter. Has anyone seen any cuts in rewards for their card?
    15 Jul 2013, 09:00 PM Reply Like
  • It said the company cut reward "expenses," not actual rewards. Please re-read a little more carefully.
    16 Jul 2013, 09:13 AM Reply Like
  • MATT

     

    Your absolutely right however how does one cut expenses when the have improved the rewards unless you were over staffed to begin with?
    16 Jul 2013, 09:58 AM Reply Like
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