This week the major UK banks have been publishing their half-year results.  Royal Bank of Scotland (RBS), last but not least, published its results this morning. While the headlines have been focusing on the bank’s return to profitability, the most interesting credit card information was tucked away in Barclays’ results.

The Barclaycard division revealed a 15% drop in profits in its US credit card operation due to tighter US regulation.  The UK is facing similar tighter regulation in the UK, which comes into effect in January 2011. The details and execution will be the subject of later posts on this blog, and are covered in other articles on CompareandSave.com.

In summary, the new regulations aim to provide consumers with greater protection and transparency over charges. The aims are good. If, as Barclaycard’s US results indicate, the sector becomes less attractive to issuers as a result, will it impact on the range of credit card products and innovation we are likely to see in the future?

Early indications from the US would suggest yes, at least initially. APRs have risen, 0% ‘teaser’ periods on balance transfers and purchases have reduced in length, and issuers have rationalised the number of cards in their portfolios. During the first half of next year in the UK we may see fewer, less interesting credit card products emerging. On the other hand, we will have more information about how the various fees attached to our plastic friends actually work. A trade off that may invoke mixed reactions depending on how you currently use your credit card.