Perfect Storm Forms for U.S. Bank Credit Card Issuers Mid-Year 2017

The stage is set for rough seas for the U.S. card industry going forward. Three indicators signal risk new account bookings surged since 2011; active credit card lines now exceed $3.4 trillion; and 30-day credit card delinquency deteriorated in first quarter 2017. Exceeding year’s pace, Chase opened up 2.5 million accounts in 1Q/17, compared to…

V+MA+AXP+DFS Q1 U.S. CC GDV – V +20% AXP -6%

Gross dollar volume (GDV) for Visa, Mastercard, American Express and Discover credit cards (CC) in the U.S. climbed 9.4% year-on-year (YOY) in 1Q/17 reaching $793 billion, according to CardData. Visa led the way in the first quarter posting a 19.8% YOY gain for U.S. GDV, offsetting the American Express decline. Visa reported first quarter U.S.…

V+MA Q1 Canada PDV Solid Double-Digits FX YOY Growth Driven by MA

Purchase dollar volume (PDV) in Canada for Visa and Mastercard posted strong performance in the first quarter (1Q/17) up 16.4% year-on-year (YOY). Canadian cards-in-force (CIF) increased 5.9% YOY to 108 million, according to CardData. For 1Q/17, Visa posted a 430 basis points (bps) increase YOY in PDV, while Mastercard reported a 370 bps YOY PDV…

Credit Card Account Acquisitions Driven by Sub-Prime with Low Credit Limits

The number of new credit card accounts (those opened in the previous 24 months) rose to 88.1 million, driven in part by a 16% increase in new subprime accounts. Even with this increase, subprime accounts continue to comprise roughly one-fifth of total open accounts — equivalent to 2012 levels. According to the American Bankers Association’s…

Discover Card Q1 Profits Slip w/Rising Charge-Offs – Yields Solid

Discover’s (DFS) credit card portfolio stayed in positive territory in the first quarter (1Q/17), while profits decreased reflecting a rising charge-offs. Discover’s total revenue rose 2.4% YOY to $2278 million for 1Q/17, compared to $2358 million in the prior quarter and $2224 million for the year ago quarter. For 2016, DFS averaged $2275 million per…

TSYS Posts Decent Q1 Profit While Trimming Jobs and Diversifying

GA-based acquirer TSYS reported a solid first quarter (1Q/17) as total revenues hit $1185 million, a jump of 60.4% year-on-year (YOY). Net income increased 16.9% YOY from $90.6 million in 1Q/16 to $105.9 million in 1Q/17, according to CardData. The Company says the strategy of diversification has been paying-off for the first quarter. TSYS also…

ADS Q1 Exceeds Expectations – Segments Pumping on All Cylinders

Dallas-based Alliance Data Systems (ADS) reported first quarter (1Q/17) year-on-year (YOY) profits declined but Loyalty One, Epsilon, and especially Card Services, all posted strong first quarter YOY performance, according to CardData. ADS reported gross revenue rose 12.1% YOY in 1Q/17 to $1879 million, compared to $1828 million for 4Q/16, and $1676 million for 1Q/16. Net…

All the Cards are Finally Lining Up for Solid Growth in Corporate Purchasing Cards

The global corporate purchasing cards market is projected to grow at a CAGR of 9.5% over the next five years due to the growth in spending on corporate purchasing cards, which is driven by lower fixed costs in the payment cycle, effective cash management, transparency and management control, and long-term process efficiencies. According to ‘Global…