Citibank’s U.S. bank credit card profits rose 22.4% year-on-year (Y/Y) and retail credit card profits rose 1.4% Y/Y in the fourth quarter of 2014 (Q4/14). End of Period (EOP) bank credit card outstandings declined 4.3% Y/Y, while purchase dollar volume (PDV) rose 3.9% Y/Y.
Citi’s U.S. bank credit card profits of $639 million were flat sequentially but up Y/Y. Citi’s retail credit card Q4/14 profits of $362 million were likewise up Y/Y.
U.S. bank credit card profits were driven by record low delinquency and charge-offs coupled with rising PDV and higher net credit margin, according to CardData.
Citi’s bank credit card portfolio ended Q4/14 with $67.5 billion in outstandings and $65.7 in average outstandings for the quarter.
PDV for the fourth quarter was $45.1 billion, a 3.9% increase over Q4/13.
Citi ended the fourth quarter with 23.6 million U.S. bank credit , card accounts, down 1.3% Y/Y.
Citi’s total delinquency rate, as a percentage of EOP outstandings, increased 3 basis points (bps) from the prior quarter to 1.72% and dipped 19 bps from the year ago quarter. Recent delinquency of 30-89 days stands at 0.84%, compared to 0.85% in Q3/14 and 0.94% in Q4/13. Older delinquency of 90+ days likewise declined to 0.88% in Q4/14, compared to 0.84% in the prior quarter and 0.97% in the year ago quarter.
Charge-offs, as a percentage of average loans, continued to decline to 3.10% for Q4/14, down 6 bps sequentially and 32 bps Y/Y.
Average yield of 10.35%, rose 2 bps Y/Y and down 3 bps from Q3/14.
Citibank also announced today it plans to exit the prepaid card business.
RAM Research projects Citi’s U.S. bank credit card profits will come in at $635 billion in the first quarter.
For more data on Citi’s Bank Credit Card Portfolio access CardData®. For information and commentary on Citi’s Bank Credit Card Portfolio visit the searchable CardFlash® Library of more than 58,000 articles published since 1995. RAM Research® forecasts on Citi’s Bank Credit Card Portfolio are available exclusively through CardWeb.com.®
Average loans, EOP loans and the related consumer delinquency amounts and ratios include interest and fees receivables balances.
Average yield is calculated as gross interest revenue earned divided by average loans.
Net interest revenue includes certain fees that are recorded as interest revenue.
Net credit margin represents total revenues, net of interest expense, less net credit losses and policy benefits and claims.