Cross River Intelligence Archives

Earnings season continued this week with reporting from card issuers that focus on mass-market credit products including Capital One, Synchrony Financial, and Discover.  We see a bifurcation in credit performance trends between mass affluent credit card issuers, and issuers focused on mass market credit segments. Synchrony, the largest store credit card issuer, shares dropped 16% on Friday ...

Banks earnings season continued this week following strong Q1 results from JP Morgan and Citi last week. Morgan Stanley beat expectations on each line of business increasing year-over-year profits by 82%. The investment bank also generated 122% YOY revenue growth in the fixed income currency and commodities business. Bank of America exceeded expectations and benefitted from the greater net interes ...

The US Fed released their quarterly report covering “Quarterly Trends for Consolidated U.S. Banking Organizations”. The report shows that the ROE for the banking sector remains mired in the 7 to 9% range, below pre-crisis levels and the theoretical cost-of-capital for many banks. Earnings season kicked off last week, with J.P. Morgan leading the trio of banks who released their firs ...

Tax season is coming to a close in the United States. Millions of Americans expect tax refund disbursements.  Hundreds of thousands of delinquent borrowers are expected to use refund proceeds to catch-up on delinquent mortgages and loans. The persistent seasonal impact of tax refund disbursements on cure rates underscores the fragile balance sheet position of millions of Americans, and is ...

Several new investments and partnerships were announced last week. A leading China FinTech firm and wealth manager, CreditEase unveiled plans to invest $30 Mn in loans originated from OnDeck and LendingHome. Capital markets are re-opening to non-bank lenders. Elevate Credit, a non-prime consumer online lending platform, is expected to raise approximately $100 Mn with an IPO expected to price th ...