The nation’s top twelve issuers, based on outstandings, now comprise 81% of the U.S. bank credit card business and as a group grew 8% over the past twelve months. Capital One remains the fastest growing top issuer, driven by a $1 billion annual marketing budget and a focus on sub-prime prospects, which now make up at least 40% of its portfolio. Among issuers with less than $10 billion in outstandings, Target’s “smart VISA” and Sears National Bank’s “Gold MasterCard” have exploded over the past year signing up more than 16 million (net) new cardholders. Chase racked up a 32% growth rate at mid-year, primarily due to its acquisition of part of the Providian portfolio. Meanwhile, Providian declined 33% as it overhauls its business. MBNA, once a growth machine that rivaled Cap One, has slowed to a 7.5% annual growth rate. MBNA has distanced itself from the sub-prime market but continues to deliver solid profits. MBNA reported 2Q/02 profits of $457.8 million, a 21% increase over 2Q/01. Capital One’s profits were up 37% over the same period to $213.1 million. For complete details on 2Q/02 performance on the nation’s top 250 issuers visit CardData ([www.carddata.com][1]).
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Top Bank Credit Card Issuers in the U.S.
(ranked by outstandings)
ISSUER 2Q/02 2Q/01 CHNG
1. Citibank* $108.2b $103.9 +4.1%
2. MBNA $ 75.8b $ 70.5b +7.5%
3. Bank One $ 66.8b $60.3b +10.8%
4. Chase $ 49.5b $37.4b +32.4%
5. Discover $ 49.4b $50.2b – 1.6%
6. Cap One* $ 45.1b $29.9b +50.8%
7. AmEx $ 31.6b $31.2b + 1.3%
8. BofA $ 27.1b $24.9b + 8.8%
9. Providian $19.9b $29.8b -33.2%
10. Household $15.4b $14.9b +3.4%
11. Fleet $14.7b $14.5b +1.4%
12. Metris $11.7b $10.1b +15.8%
TOTAL: $515.2b $477.6b +7.9%
*Citibank includes Canada and Mexico as the company no longer discloses
its domestic portfolio; Cap One may include some international accounts
as the company no longer discloses its domestic portfolio
Source: CardData (www.carddata.com)
[1]: http://www.carddata.com
