While the average yield for U.S. Visa and MasterCard-branded credit cards, issued by the top four issuers, declined 10 basis points (bps) sequentially (QOQ) in the second quarter to 11.44%, the peer group has bumped up by 6 bps year-on-year (YOY). In Q2/15, Chase was the only top issuer with an increase in yield QOQ, according to CardData.
Chase posted an average yield of 12.35% for U.S. credit cards in Q2/15, compared to 12.19% in Q1/15, and 12.23% for Q2/14. The Chase figure represents total net revenue as a percentage of average loans and includes non-interest revenue and net interest income.
The BofA average yield for U.S. consumer credit cards decreased 19 bps QOQ, and down 18 bps Y/Y. BofA posted an average yield of 9.08% for Q2/15, compared to 9.27% in Q1/15, and 9.30% for Q2/14.
The Capital One (COF) average yield for domestic credit cards decreased 28 bps sequentially, and down 48 bps from one-year ago. COF posted an average yield of 13.95% for Q2/15, compared to 14.23% in Q1/15, and 13.95% for Q2/14. The COF figure represents the average yield on loans held for investment and is calculated by dividing annualized interest income for the period by average loans held for investment during the period for the specified loan category. Annualized interest income excludes various allocations including funds transfer pricing that assigns certain balance sheet assets, deposits and other liabilities and their related revenue and expenses attributable to each business segment.
The CITI yield for Citi-branded bank credit cards issued in North America decreased 9 bps sequentially, but increased 4 bps from one-year ago. CITI posted an average yield of 10.39% for Q2/15, compared to 10.48% in Q1/15, and 10.13% for Q2/14. The Citi average yield is calculated as gross interest revenue earned divided by average loans.
CREDIT CARD YIELD HISTORICAL
BIG 4 AVERAGE U.S. YIELD
For data, background and forecasts on Credit Card Yields: Search CardWeb.com’s CardFlash® Library of more than 58,000 archived articles; Access CardWeb.com’s CardData® for current and historical Performance, Portfolios, Profiles, etc. Visit RAM Research® (ramresearch.com) for quarterly and annual forecasts covering more than 150 payments metrics. [complimentary or deeply discounted access to CardWeb.com subscribers].
Additional database resources include CardWeb.com’s CardExecs® – comings & goings of payments movers & shakers; CardWeb.com’s CardWatch® – ears & eyes on marketing globally (57K items); and CardWeb.com’s CardPixes® – form & function of card design (7K items).