Citigroup Net Profit Doubles

Citigroup reported today a 4Q profit for 2013 at double that of its 4Q profit of 2012. Net Income was at $2.7 billion on revenues of $17.8 billion for 4Q/2013 compared to net income of $1.2 billion on revenues of $17.9 billion for 4Q/2012. CVA/DVA was a negative $164 million ($100 million after-tax) in the fourth quarter, mainly resulting from the improvement in Citigroup’s credit spreads, compared to negative $485 million ($301 million after-tax) in the prior year period. Excluding CVA/DVA, fourth quarter revenues were $17.9 billion, down 2% from the prior year period. Fourth quarter 2013 results also included a $189 million after-tax benefit related to the divestiture of Citi’s Credicard business in Brazil, while results in the prior year period included a $1.0 billion repositioning charge ($653 million after-tax). Excluding CVA/DVA, the impact of the Credicard divestiture in the fourth quarter 2013 and the fourth quarter 2012 repositioning charge,6 earnings were $0.82 per diluted share, up 19% from the prior year period.

Visa Metrics 2014

Visa has decided to no longer provide financial metrics for marketing expense, capital expenditures and tax rate for fiscal full-year 2014. However, for fiscal full-year 2014 Visa did provide financial metrics on net revenue growth and client incentives as a percent of gross income. Visa expects annual net revenue growth to be in the low double-digits on a constant dollar basis, with an expectation of two percentage points of negative foreign currency impact for fiscal full-year 2014.

Card Assets

Combined, Visa and MasterCard hold total assets of nearly $50 billion as of the third quarter of last year. Visa reported total assets of $36 billion for Q3 while MasterCard reported total assets of $13.7 billion. One-year ago Visa’s total assets stood at $40 billion. The Visa decline was due to the release of cash in its litigation escrow account of $4.4 billion. MasterCard’s total assets have grown over the past year from $12.1 billion to $13.7 billion.

AT&T and Vantiv Announce New Mobile Payments Solutions

AT&T and Vantiv, Inc. announced the availability of new payment products that deliver highly secure, integrated and speedy on-the-spot mobile transactions to businesses of all sizes. Mobile payments represent a market opportunity with significant upside as businesses implement new, more integrated ways to manage their operations and sell to customers. In fact, Forrester Research projects that U.S. mobile payments will reach $90 billion in 2017, representing a 48 percent compound annual growth rate from the $12.8 billion spent in 2012.

Net Element’s Aptito Achieved Visa Ready

Net Element, Inc. is pleased to announce today that Aptito, LLC (“Aptito”), has achieved Visa Ready status for their mPOS solution. Aptito is a next generation, cloud-based point of sale payments platform, operated through TOT Group, Inc. (“TOT”) the mobile payments and transaction processing subsidiary of Net Element. Aptito helps restaurants drive consumer engagement via tablet, mobile and all other cloud-connected devices. Aptito’s mPOS system provides hospitality merchants with tools to increase sales, productivity, and customer loyalty. The solution is a tablet-based POS that combines traditional POS functionality with mobile ordering, payments, social media, intelligent offers, mobile applications, loyalty, and transactional data all in one solution supported by Aptito’s cloud-based payments platform.

TD Go Card For Parents

TD Bank has launched TD Go, a reloadable prepaid card for teenagers that can be used wherever Visa debit cards are accepted. Adults can open and fund the card for their teenagers online using a debit or credit card or via direct deposit. Once activated, parents can monitor spending online and receive email and text alerts on balances, transactions and adult-oriented purchases. The TD Go Card allows teenagers to spend only available funds unlike credit cards and if a card is lost or stolen it can quickly be cancelled and replaced unlike cash.

Vantiv and MasterCard

Vantiv, Inc. and Microsoft announced an agreement to deliver a new range of solutions for mobile POS and cloud-connected payments that can help businesses maximize their customer reach at any scale, end-to-end. From simple mobile payment collection in the field, to individual direct sales transactions, to retail store operations and more, the combination of Microsoft’s technology with Vantiv’s processing services and support will make it easier for businesses to take full advantage of their most important asset – their people – to offer seamless best-in-class experiences.

Jones Group Selects VeriFone

VeriFone Systems, Inc. announced that The Jones Group Inc. has selected VeriFone solutions to enable mobile payment acceptance and enhance customer experience for its internationally recognized brands, including Jones New York and Nine West. VeriFone will upgrade the brands’ payment environments with its PAYware Mobile e210 mobile point-of-sale (mPOS) solution and the MX 915, an NFC-enabled, multi-media payment terminal.

Card Metrics

U.S. credit card margins and yields have largely been holding steady over the past year. However, Citibank reported that its net credit margin for credit cards rose 89 basis points in the third quarter to 11.16%. Net credit margin is total revenues, net of interest expense, less net credit losses and policy benefits and claims. Chase reports its total net revenue for credit cards declined slightly from 12.46% one-year ago to 12.22% in the third quarter of this year. Total net revenue is a percentage of average loans.

VISA – New Logo and Tagline

Visa Inc. launched “Everywhere you want to be,” a multi-stakeholder communications platform that reflects our ambition to deliver universal access to Visa’s secure, reliable and convenient digital payments. For decades, Visa, the global digital payments network, has been driven by a set of ideals anchored in our vision of being the “best way to pay and be paid.” This has expanded in recent years to include “for everyone, everywhere.” By evolving our famous tagline – “It’s everywhere you want to be” – the company is recommitting to these ideals and vision for consumers, merchants, governments, financial institutions and employees with a unified message tailored to each audience.