Consumer credit card losses, or charge-offs, among the Top 100 U.S. banks, are continuing to rise to levels for a second-quarter not seen since 2013. Meanwhile, delinquency, the precursor of charge-offs, is also hovering at six-year highs. The trends are concerning to card issuers as it adds more evidence the U.S. economy is headed into…
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Second-quarter credit CIF (cards-in-force) continue to grow despite a saturated U.S. market driven by an expanding sub-prime marketplace and the aggressive marketing of high-end rewards cards. Over the past year, the total CIF is up by more nearly 24 million, and growing more 300 basis points (bps) over the prior twelve-month period. Mastercard is blowing…
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U.S. card yield, as an average for the nation’s Top 4 issuers, remained at record levels in the second-quarter despite a small downtick sequentially. All of the issuers posted lower yields in the second-quarter from the prior quarter. However, this is fourth consecutive quarter wherein all of the Top 4 exceeded 10%. The U.S. Top…
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Second-quarter PDV (purchase dollar volume) for the U.S. payment cards (credit+debit+charge+prepaid) grew 9.1% YOY (year-on-year), compared to 11.1% one-year ago. Mastercard picked up 90 bps (basis points), while Discover declined 440 bps during the same period. The Major 4 U.S.-based payment card networks: Visa [V]; Mastercard [MA]; American Express [AXP]; and Discover (DFS) collectively posted…
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Second-quarter card charge-offs among the Top 4 U.S. bank credit card declined slightly from the prior quarter, a historical pattern, but up double-digits from one-year ago, remaining the highest for a second-quarter in seven years. Credit card charge-offs among the nation’s Top 4 credit card issuers dipped 2 bps (basis points) sequentially in the second-quarter…
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Second-quarter global cards among the Major 4 U.S. payment networks expanded by 347 million credit and debit cards-in-force (CIF) over the past twelve months. The Major 4 (Visa [V], Mastercard [MA], American Express [AXP], Discover/Diners [DFS]), global payment cards grew 6.5% year-on-year (YOY) in the second-quarter (2Q/19). Second-Quarter Global Cards Growth Analysis The Major 4…
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Second-quarter card loan growth, among the Top 4 U.S. issuers, grew a paltry 2.6% year-on-year (YOY), compared to 3.4% YOY in the prior quarter, and compared to 4.8% YOY one-year ago. Among the nation’s Top 4 credit card issuers (Chase [JPM], Capital One [COF], Bank of America [BAC], and Citibank [C]), the annual growth rate…
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Second-quarter global volume on a currency adjusted basis (FX) for the Major 4 U.S. based networks was essentially flat year-on-year (YOY) down by 10 basis points (bps), compared the prior year. American Express posted the only YOY FX gain in global gross dollar volume (GDV) of nearly 200 bps. Global payment card (credit+debit+charge+prepaid) GDV for…
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Card cash transactions Internationally for Visa and Mastercard picked up some steam in credit card cash transaction (CTX), while debit card CTX slipped nearly 300 bps (basis points) YOY (year-on-year) in the first-quarter. GTX for credit and debit cards combined increased 3.8% YOY in the first-quarter (1Q/19) compared to a 6.0% YOY increase in the…
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International card CDV (cash dollar volume) for Visa and Mastercard payment cards increased by 5.4% YOY FX (currency adjusted) in the first-quarter (1Q/19), compared to 7.1% YOY FX one-year ago. On a nominal basis (not currency adjusted) CDV decreased 4.5% YOY for 1Q/19, compared to a 12.2% YOY gain for 1Q/18. Visa and Mastercard international…
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Mastercard and Visa card purchase transactions (PTX) for credit and debit cards in the U.S. grew by 7.0% year-on-year (YOY) in the first-quarter (1Q/19) compared to a 9.6% YOY gain in the fourth-quarter. The growth was primarily driven by Mastercard U.S. credit cards PTX on a YOY basis and by Visa U.S. credit cards on…
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Second-quarter card delinquency among the nation’s top credit card issuers dipped from the prior quarter, due to seasonality and increasing balances. However, over the past five years, the second-quarter delinquency ratio has been on an upward trend, rising 35 bps (basis points) from the second-quarter of 2015. It is the highest second-quarter ratio for more…
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