Positive Signs Point to Credit Growth in 2H11, J.P. Morgan Reports

J.P. Morgan believes the most notable development from the managed data releases – American Express Company AXP and Capital One Financial Corp. COF – is a positive indication that growth may resume for certain issuers in 2H11. “AXP reported its second consecutive month of Y/Y growth in US Card receivables (1.6%),” J.P. Morgan writes. “In addition, while COF reported portfolio runoff of 17bps (slightly above historical average for May), the sequential run-off appears to be slowing. We believe the rapid decline in NCOs in 2011 will likely continue, and should slow the asset attrition.” American Express closed Wednesday at $47.28; Capital One closed at $47.87.